UK and Turkey sign trade deal
The UK-Turkey Free Trade Agreement has been signed as International Trade Secretary Liz Truss and Turkey’s Minister for Trade, Ruhsar Pekcan, met on a video call last week.
The deal will secure existing preferential tariffs for the 7,600 UK businesses that exported goods to Turkey in 2019, ensuring the continued tariff-free flow of goods and protecting vital UK-Turkey supply chains in the automotive and manufacturing sectors.
Today’s agreement will ensure preferential trading terms for UK businesses that exported more than £1bn worth of machinery, and iron and steel exports worth £575m, to Turkey in 2019.
It also ensures UK businesses can continue to import under preferential tariffs, compared with no agreement. This supports UK importers of textiles, where the annual increase in estimated duties would have been around £102m under WTO terms. Tariffs applied to UK imports of washing machines and televisions will remain at 0%, compared to up to 2% and 14% respectively under WTO terms.
Vital UK-Turkey supply chains will also be protected for automotive manufacturers. In 2019, UK car exports to Turkey were worth £174m.
In under two years we have now reached agreement with 62 countries – and the European Union – to cover £885 billion of UK trade.
This is unprecedented, with no other country ever negotiating so many trade deals simultaneously. The Government’s ambition is to secure free trade agreements with countries that cover 80% of UK trade within three years.
International Trade Secretary Liz Truss said: “Today’s deal covers trade worth more than £18 billion, delivers vital certainty for business and supports thousands of jobs across the UK in the manufacturing, automotive and steel industries.
“It paves the way for a new, more ambitious deal with Turkey in the near future, and is part of our plan to put the UK at the centre of a network of modern agreements with dynamic economies. More trade and investment will drive economic growth across our United Kingdom and help us build back stronger from Covid.”
Andy Burwell, Director for International Trade and Investment at CBI, said: “This agreement will maintain bilateral trade worth over £18bn and will shore up key supply chains across many industries after a year of disruption.
“Turkey’s customs union with the EU made a trade deal with the UK complicated, but the pace at which the deal has been finalised following the negotiated EU deal shows the strength and depth of the relationship.
“Businesses and government must now look to growth, creating the trading relationships which will build a competitive, dynamic and progressive future economy.”