London and Ankara race to get agreement into force before Britain leaves EU single market
The UK and Turkey are set to sign a free trade deal on Tuesday, the first since Boris Johnson secured a new trade agreement with the EU.
The two countries have finalised the text of a “continuity agreement” that replicates existing trading terms between Ankara — which has a customs union agreement with Brussels — and London. Bilateral trade between the countries was worth nearly £19bn last year, according to the Department for International Trade.
The agreement is expected to be signed on a video call this week by representatives from each side. An exchange of diplomatic notes will then allow the deal to come into force even though there is not enough time for it to be ratified by the two countries’ parliaments before the UK leaves the EU single market on December 31.
The UK is Turkey’s second-biggest export market but Ankara’s customs union with the EU meant that a free trade agreement could not be finalised until a Brexit deal was in place. That raised fears among Turkish producers of white goods, cars and textiles that their products could be face hefty import tariffs and UK border delays if Britain crashed out of the 27-member bloc.
One British official said there was an “immediate sense of relief” at the agreement, adding that both Turkish manufacturers and their British counterparts had been anxious about the prospect of a no-deal Brexit
The deal seeks to replicate the trading terms that currently exist between the UK and Turkey, with tariff-free trade on all non-agricultural goods, according to British officials. The UK has also agreed to roll over the preferential tariffs that Turkey enjoys on some agricultural products under its customs union with the EU.
The agreement contains a review clause that requires the two nations to reconvene within the next two years to discuss expanding the deal further to include services, including digital services, and more liberal regulations on trade and agriculture.
Ankara has for years sought a similar upgrade to its customs agreement with the EU but the process has stalled as the relationship between president Recep Tayyip Erdogan and European leaders has deteriorated. Many members of the bloc are alarmed by what they see as the Turkish leader’s growing authoritarianism at home and aggressive foreign policy.
The UK official said it would be easier for Britain to take a “pragmatic” approach with Turkey, adding that an upgraded free trade deal would be “win-win” for both countries.
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.