The United Kingdom and Turkey have had a long-standing trade relationship dating back to the 17th century. Both countries have enjoyed mutual benefits from this partnership, which has become even more important in recent years. With the UK leaving the European Union in 2020, negotiations for a new UK-Turkey trade agreement intensified.
What is a UK-Turkey trade agreement?
A UK-Turkey trade agreement is a formal agreement between the governments of the UK and Turkey that regulates trade relations between the two countries. This agreement aims to increase bilateral trade by reducing barriers, promoting investment, and encouraging economic growth in both countries.
The current trade agreement between the UK and Turkey was signed in 1996 under the European Union`s umbrella. However, with the UK`s departure from the EU, the existing agreement became null and void. The UK and Turkey have been negotiating a new trade deal to replace the previous one, which will ensure that trade continues without disruption, despite the changes brought about by Brexit.
What will the new UK-Turkey trade agreement cover?
The new UK-Turkey trade agreement will cover a wide range of areas, including goods, services, investment, and intellectual property. It will also address issues such as rules of origin, tariffs, and customs procedures to ensure that trade between the two countries remains smooth and seamless.
One of the significant changes that the new trade agreement will bring is the reduction or elimination of tariffs. Currently, Turkey has a customs union with the European Union, which means that they have a common external tariff. However, with the new UK-Turkey trade agreement, both countries are expected to negotiate a new tariff regime that will benefit both parties.
Another critical area that the new agreement will cover is services. This sector has become increasingly important in recent times, with the rise of the digital economy and e-commerce. The new UK-Turkey trade agreement will aim to improve market access for service providers in both countries, making it easier for them to do business with one another.
Why is the UK-Turkey trade agreement important?
The UK-Turkey trade agreement is crucial for both countries as it will help to strengthen their already existing economic ties. Turkey is the UK`s eighth-largest export market outside of the EU, with exports worth around £11.9 billion. On the other hand, the UK is Turkey`s second-largest export market outside of the EU, with exports worth around £10.8 billion.
The new trade agreement will help to maintain and enhance this trade relationship, creating new opportunities for businesses to expand their reach and market access. It will also provide a platform for collaboration on issues such as technology, innovation, and sustainable development.
In conclusion, the new UK-Turkey trade agreement will play a vital role in strengthening the economic partnership between the two countries. It will create new opportunities for businesses to grow and expand, while also supporting sustainable development and innovation. As negotiations continue, it is important to remember that a mutually beneficial agreement is in the interests of both countries.