The United Kingdom and Turkey have entered into a no-tariff trade agreement that is going to support the trading relationship of £18.6b in 2019. Both nations are striving to work toward a more ambitious trade agreement for upcoming times.
- The United Kingdom and Turkey are securing a big victory trade agreement for the the United Kingdom’s automotive, production and steel sectors.
- The agreement goes hand in hand with a trading agreement of 18.6b pounds from 2019.
- The deal sets the foundation for an ambitious trade partnership between the United Kingdom and Turkey in upcoming times.
The agreement between the two countries was signed yesterday as Liz Truss, Secretary of International Trade, and Ruhsar Pekcan, Minister of Trade of Turkey, met via a video call.
The agreement will lock in preferential tariffs already in place for the 7,6k companies from United Kingdom that exported products to Turkey last year, making sure the ongoing duty-free transport of products and securing important supply chains in the automotive and manufacturing industries.
Both nations are adamant to work to a more ambitious free trade deal in upcoming times, which will go beyond than the agreement in place and be suited to the United Kingdom economic landscape.
Today’s agreement will make sure there are preferential trading terms for companies from the United Kingdom that exported over one billion pounds of machinery and exports of iron and steel to Turkey last year.
It also makes sure that United Kingdom enterprises can carry on to import under preferential tariffs after Brexit. This is supported by United Kingdom textile importers, where the yearly jump in the estimated duties is circa GBP102 million under the World Trading Organization conditions. The tariffs applied to UK imports of washing machines and TVs will stay zero percent, compared to up to two percent and fourteen percent under World Trading Organization conditions.
Important United Kingdom-Turkey supply chains are going to also be secured for car manufacturers, like Ford, which has 7,500 workers in the United Kingdom. Automobile parts are brought from the United Kingdom to Turkey to be assembled as vehicles, 1/3 of which are then exported to the UK. Last year, United Kingdom car exports to Turkey amounted to GBP174 million.
In less than a couple of years, UK got to make deals with 62 nations – and the EU – to cover GBP885b of United Kingdom’s trade.
No other country ever negotiated this many trade deals at the same time. The Government’s plan is to ensure free trade agreements with nations that cover 80 percent of United Kingdom’s trade within 3 years.
Liz Truss stated that the deal with Turkey takes care of over eighteen billion pounds of trade, brings stability to enterprises and supports countless jobs over the United Kingdom in the production, car and steel sectors.
This will pave the way for a new, more ambitious agreement with Turkey soon and that’s a portion of their plan to put the United Kingdom at the center of a network of new deals with countries that have a dynamic economy. More trade and investment will drive up economic expansion over the UK and assist the country recover from corona.
Ford also welcomed the deal, and its quickness. This all shows its significance to the economic development of the nations in question.
Since Ford and Ford Otosan account for over ten percent of the overall volume of trade amid the United Kingdom and Turkey, the trade deal is very important to us and is going to assist in securing new positions in both nations.
The deal will maintain a bilateral trade value of more than 18b pounds and, following a year of disruption, will strengthen the main supply routes over lots of sectors.
Turkey’s customs union with the European Union has made the trade agreement with the United Kingdom more complex, but the speed at which the agreement was finalized after the negotiated European Union agreement displays the strength and depth of the partnership.
Enterprises and government need to now look towards growth, making trade relations that will shape a competitive, dynamic and progressive economic landscape.