The United Kingdom and Turkey have long had an important trading relationship, with Turkey being the UK’s eighth-largest export market outside of the European Union. However, until recently, this trade was subject to the regulations of the EU-Turkey Customs Union Agreement. With the UK’s exit from the EU, negotiations have been ongoing for a new trade agreement between the two countries.
After years of negotiation, on December 29, 2020, the United Kingdom and Turkey announced that they had reached a historic trade agreement. This new agreement builds on the existing customs union and will guarantee continued tariff-free trade between the two countries. It will also provide for the reduction or elimination of trade barriers in various sectors, such as automotive, agriculture, and services.
One of the main benefits of this agreement is that it will provide stability and certainty for businesses in both countries. With the UK no longer being part of the EU, many businesses were concerned about the potential disruption to their supply chains and the impact on their bottom lines. This new agreement will help to alleviate these concerns and ensure that trade between the UK and Turkey can continue to thrive.
Another benefit of this agreement is that it will provide new opportunities for UK businesses to export to Turkey. Turkey is currently the world’s 18th largest economy and has a population of over 84 million people. With this new agreement, UK businesses will have enhanced access to the Turkish market, which is expected to result in increased trade and investment between the two countries.
In addition to the economic benefits, this agreement also has geopolitical significance. Turkey is an important ally for the UK, and this new trade agreement will help to strengthen the relationship between the two countries. It will also help to demonstrate the UK’s commitment to pursuing trade agreements with countries outside of the EU and its ability to negotiate such agreements successfully.
Overall, the new UK-Turkey trade agreement is a positive development for both countries and a testament to their strong trading relationship. As the UK continues to pursue trade agreements with countries around the world, this agreement serves as an important example of what can be achieved through negotiations and collaboration.
