Ahead of the launch of talks on an upgraded trade deal with
Turkey, Trade Secretary visits Istanbul to
strengthen trade ties and kick off a year of boosting services
trade.
The UK and Turkey have a thriving trading relationship, with
trade up more than 17% in current prices to £26.2 billion in the
year to June 2023. The two countries have an existing trade deal
which covers goods but not services, digital or data – three key
components of 21st century trade.
While in Istanbul the Secretary of State will meet her Turkish
counterpart, Minister for Trade Ömer Bolat, to discuss how to
boost UK-Turkish trade ahead of the launch of talks on an
upgraded trade deal covering services and digital later in the
year.
While there she will also visit Turkish Airlines, who have just
contracted Airbus to supply them with 220 planes, the wings for
which will be designed in Bristol and built in North Wales, with
Rolls Royce supplying engines, made in Derby, for much of the
fleet. The contract is one of the UK’s biggest export deals to
date, worth billions of pounds to the economy and supporting
thousands of skilled jobs.
Business and Trade Secretary said:
“I’m delighted to be in Turkey ahead of talks to upgrade our
existing trade deal to make it fit for the 21st century.
"The UK is the second biggest exporter of services in the world -
UK lawyers, accountants and architects are in high demand across
the globe.
“With its major economy and strategic position, Turkey presents
huge opportunities for UK businesses. And I'm excited to start
discussions on ensuring our new trading relationship with Turkey
unlocks those opportunities."
The UK’s services sector – from lawyers and accountants to
engineers and financial professionals, makes up around 80% of
GDP. Our services exports reached a record a high of £464 billion
in the 12 months to October 2023, up 16% in current prices on the
previous 12 months.
The UK has set its sights on progressing a whole host of
innovative, service-focused trade deals with countries including
Turkey, Switzerland, Mexico and South Korea, as well as the Gulf
Cooperation Council, in 2024. The deals are designed to give UK
companies a competitive edge in those countries, boost UK service
exports even further and support jobs up and down the UK.
While in Istanbul the Secretary of State will also meet top UK
and Turkish investors including Ford and Mott MacDonald to
discuss how the UK and Turkey can boost investment in sectors
such as manufacturing, tech and transport, building on the £8.9
billion of UK investments in Turkey and £720 million of Turkish
investments in the UK.
TheCityUK Managing Director of International Nicola
Watkinson said:
"Turkey holds tremendous growth potential through the rising
Middle East to Asia growth corridor. The UK is well-positioned to
forge innovative and forward-looking trade agreements and be part
of these exciting opportunities.
“This visit not only demonstrates the UK’s commitment to
fostering stronger economic relationships but also sets the stage
for an ambitious Free Trade Agreement that promises benefits for
our industry."
Mott MacDonald Group Head of Strategy Simon Harrison
said:
“Turkey continues to play a key geostrategic role in the world
and shares the UK’s position of being a large economy adjacent to
the European Union, and hence a partner with whom trade ties
matter.
“The UK-Turkey relationship is warm and longstanding, with many
complementarities - for example UK professional services and
Turkish construction are both world renowned, and these trade
discussions provide an opportunity to build from a position of
strength for both nations.”
Background
- Trade between the UK and Turkey reached £26.2 billion in the
12 months to June 2023, making Turkey the 17th largest
trading partner for the UK.
- UK services exports to Turkey in sectors such as transport,
financial and other business services increased by 57% in current
prices in the 12 months to June 2023.
- While in Istanbul the Secretary of State will also:
-
- Launch a £1 billion loan guarantee from UK Export Finance
for the construction of a new 140km high-speed railway in
Turkey, which is expected to create new, multimillion-pound
contract opportunities for the UK’s manufacturing
sector,
- Sign an MoU on third-country collaboration which could
mean more opportunities for UK companies to support joint
UK-Turkey projects such as the recent deal to develop 350km
of drainage infrastructure in Iraq, to which UKEF will
contribute £226m,
- Announce Turkey as a priority country under the UK’s
International Science Partnership Fund (ISPF) – opening the
way for the best of the UK and Turkey’s scientists and
innovators to partner together and bid into a £337m global
fund, and
- Conclude the review and update of the Technical Barriers
to Trade chapter of the existing UK-Turkey goods-only FTA,
which will help to facilitate goods trade, for example for
motor vehicles and chemicals, between the UK and Turkey by
helping to reduce or eliminate regulatory barriers.
