[ad_1]
The UK and Turkey will sign a free trade deal on Tuesday, the first since Boris Johnson secured a new trade deal with the EU.
The two nations have finalized the text of a “continuity agreement” that replicates the existing trade terms between Ankara, which has a customs union agreement with Brussels, and London. Two-way trade between the countries was worth nearly £ 19bn last year, according to the department for international trade.
The document is expected to be signed this week by representatives from each side in a video call. An exchange of diplomatic notes will allow the agreement to enter into force even if there is not enough time for it to be ratified by the parliaments of the two countries before the UK leaves the EU single market on December 31.
Liz Truss, Secretary for International Trade, said: “The agreement we hope to sign this week blocks duty-free trade agreements and will help support our trade relationship, valued at £ 18.6 billion last year. It will provide certainty for thousands of jobs across the UK in the manufacturing, automotive and steel industries. “
The UK is Turkey’s second-largest export market, but Ankara’s customs union with the EU meant that a free trade deal could not be finalized until a Brexit deal was in place. That sparked fears among Turkish home appliance, car and textile producers that their products could be hit by heavy import tariffs and could have problems with delays at the UK border if Britain collapses from the 27-member bloc.
A British official said there was a “sense of immediate relief” with the deal, adding that both Turkish manufacturers and their British counterparts were anxious at the prospect of a deal.
“The UK is the largest export market for household appliances that are made in Turkey,” said Hakan Bulgurlu, CEO of Turkish manufacturer Arcelik, which markets under the Beko name in Europe. “We welcome efforts to quickly finalize a free trade agreement between Turkey and the United Kingdom that will maintain the essence of our partnership without tariffs and quotas.”
The deal seeks to replicate current trade terms between the UK and Turkey, with duty-free trade in all non-agricultural products, according to British officials. The UK also agreed to renew Turkey’s preferential tariffs on some agricultural products as part of its customs union with the EU.
The agreement contains a review clause that requires the two nations to meet again in the next two years to discuss expanding the agreement to include services, including digital services, and more liberal regulations on trade and agriculture.
Ankara has for years sought a similar update to its customs agreement with the EU, but the process has been blocked largely for political reasons 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 and aggressive foreign policy.
The UK official said it would be easier for the UK to take a “pragmatic” approach with Turkey, adding that an improved free trade agreement would be “win-win” for both countries.
Turkish officials did not respond to requests for comment. The country’s Trade Minister Ruhsar Pekcan confirmed on Sunday that a draft of the agreement between the two countries was “ready to be signed”, adding that Ankara was in talks with the EU and the UK on how to speed up the finalization process. .
