- £19B bilateral trade between Turkey and the United Kingdom in 2019.
- More than 150 different products’ tariff has removed or reduced such as olives.
- This free trade agreement is a very delicate subject and the UK is keen to keep Turkey on their side.
- The UK is the second-biggest investor to Turkey,
- Turkish goods’ second-biggest export market is the UK in 2019.
- Read more about the new tariff regime of the UK, #UKGT, which will replace, in the UK, the Common Customs Tariff of the EU in 2021.
The United Kingdom and Turkey negotiations’ over a post-Brexit free trade agreement are going very well. the UK and Turkey negotiators are close to finalizing an agreement but waiting for the EU – UK trade agreement to be settled.
Turkish – British free trade agreement will separate their trade from the EU Customs Union. Besides, the UK will no longer be included in the EU’s existing trade deals with Turkey. This will enable both countries to achieve a great free trade agreement and raise bilateral trade volume to a new record from £19 billion. Boris Johnson’s government is keen to keep Turkey on their side.
Businesses are very interested in this high profile subject in order to sustain their interest by the end of the year. The free trade agreement is a very delicate subject.
Good news for exported Turkish agricultural products to the UK
More than 150 different products’ tariff has removed or reduced such as olives and tariff of the most products have remained the same. the UK Global Tariff helps to simplify clearance and with the aim of cutting costs for businesses and consumers. There isn’t any increased duty on the tariff of any agricultural goods.
“Current negotiations going on in order to land a free trade agreement between two countries after the end of the customs union of the EU. Turkey and the UK are working closely on this subject since 2016.”
“The UK and Turkey are looking forward to agreeing on a deal that replicates as far as possible current provisions of the Customs Union Agreement with Turkey. This agreement will sit alongside with possible the EU – the UK trade agreement.”Judith Slater, British Consulate General Istanbul and Trade Commissioner
Turkey and the UK have sharing approximate £19 billion bilateral trade and both side would like to at least maintain that figures after Brexit. To understand the ongoing conversations between parties, we should read the new UKGT, the UK Global Tariffs rules of origin and what we have to prepare for various given scenarios. Also, alcoholic beverages sector, pharma sector and telecom sector are holding back the progress because of market access barriers.
Rules of origin
Some topics of the UK and Turkey Free trade agreement depend on the EU and the UK trade agreement, such as rules of origin issue.
Rules of origin are basically the criteria to determine the origin of goods.
Rules of origin are a complex issue to figure out. The continuity of sustainable link of the origin of the products is crucial in terms of international trade laws. Due to the customs union position of Turkish trade, that part of negotiations will wait for the EU – UK trade agreement.
Turkish companies might be an alternative for the UK – China trade
Turkey would be an alternative for the most British companies; in terms of cheap production, geopolitical advantages and easier to ship goods to the market. Both countries can benefit from that kind preposition in the near future. This would boost the Turkish economy most. The British Chamber of Commerce encourages British companies to invest in Turkey.
Furthermore, in increased numbers, Turkish tech companies are setting up businesses and investing in the UK. London offers quite good financial investments for those entrepreneurs.
Companies in the UK and EU are looking forward to bringing their production closer to their marketplace. And Turkey is now in an ideal position to fulfil requirements.
The British Chamber of Commerce in Turkey
The history of British Chamber of Commerce in Turkey which is for 130 years, and it is the second oldest British chamber of commerce in the world after France, shows the importance of the bilateral trade between parties.
The chamber supports SME’s in order to find partners and support their business in Turkey. at the moment British companies involved lots of tech startups, financial professional services, healthcare, energy.
A British Chambers of Commerce International Affiliate that works in close cooperation within a strategic partnership with the Department for International Trade and other chambers in Turkey and the UK, BCCT delivers information, support and networking services to companies and organisations in both the UK and Turkey.