UK and Turkey Free Trade Agreement: What You Need to Know
On December 29, 2020, the United Kingdom (UK) and Turkey signed a historic free trade agreement, marking a significant milestone in the ongoing trade negotiations between the two countries. As the UK prepares to leave the European Union (EU) and sets its sights on new global trade partnerships, the agreement with Turkey represents a significant step forward in securing the UK`s future as a trading nation.
The UK-Turkey Free Trade Agreement is set to strengthen economic ties between the two countries and enhance existing trading relationships, offering new opportunities for businesses across a wide range of sectors. Here`s what you need to know about the agreement and how it will impact the UK`s trade relations with Turkey.
What Is the UK-Turkey Free Trade Agreement?
The UK-Turkey Free Trade Agreement is a comprehensive trade agreement that covers a wide range of sectors, including agriculture, automotive, textiles, and services. The agreement aims to liberalize trade between the UK and Turkey by eliminating tariffs and non-tariff barriers on goods and services, reducing trade costs, and increasing market access.
Under the terms of the agreement, 95% of all goods traded between the UK and Turkey will be free from tariffs, with the remaining 5% of tariffs to be eliminated within a period of up to ten years. This represents a significant reduction in trade barriers, which will benefit both UK and Turkish businesses by making it easier and cheaper to trade with each other.
What Are the Benefits of the UK-Turkey Free Trade Agreement?
The UK-Turkey Free Trade Agreement is expected to bring a range of benefits to businesses and consumers in both countries. Here are some of the key benefits:
1. Increased Market Access: The agreement will provide UK businesses with increased access to the Turkish market, which is one of the fastest-growing economies in the world. This will open up new opportunities for UK businesses to export their goods and services to Turkey, which could help to boost economic growth and create new jobs.
2. Tariff Reductions: By eliminating tariffs on 95% of goods traded between the two countries, the agreement will help to reduce trade costs and make it more affordable for businesses to trade with each other. This will benefit both UK and Turkish businesses by making it easier and cheaper to trade.
3. Improved Regulatory Alignment: The agreement will also help to improve regulatory alignment between the two countries, making it easier for businesses to comply with regulations and standards. This will help to reduce barriers to trade and improve the overall competitiveness of UK and Turkish businesses.
What Are the Next Steps for the UK-Turkey Free Trade Agreement?
The UK-Turkey Free Trade Agreement is expected to come into force in early 2021, following the completion of legal procedures in both countries. Once the agreement is in force, businesses will be able to take advantage of the new opportunities created by the agreement and start trading with each other on more favorable terms.
In Conclusion
The UK-Turkey Free Trade Agreement is a significant milestone in the UK`s efforts to secure new trade agreements with global partners following its departure from the EU. The agreement will benefit businesses in both countries by reducing trade barriers and increasing market access, opening up new opportunities for economic growth and job creation. As the UK looks to strengthen its trade relationships with countries around the world, the UK-Turkey Free Trade Agreement represents an important step forward in securing its future as a trading nation.