British Trade Minister, Kemi Badenoch, visited Istanbul to strengthen trade ties and kick off a year of boosting trade in services.
The UK and Turkey have a thriving trading relationship, with trade rising by more than 17% at current prices to reach £26.2 billion in the year to June 2023. The two countries have an existing trade agreement covering goods but not services, digital services or data – three key components of trade. In the twenty-first century.
While in Istanbul, Badenoch will meet his Turkish counterpart, Trade Minister Omer Polat, to discuss how to boost trade between the UK and Turkey before launching negotiations on an updated trade deal covering services and digital at the end of the year.
Badenoch will also visit Turkish Airlines, which has just contracted with Airbus to supply 220 aircraft, the wings of which will be designed in Bristol and manufactured in North Wales, with Rolls-Royce supplying Derby-built engines for a large part of the fleet. The contract is one of the UK's largest export deals to date, worth billions of pounds to the economy and supporting thousands of skilled jobs.
Kemi Badenoch said:
“I am very pleased to be in Turkey ahead of the talks to modernize our trade agreement and make it fit for the 21st century.”
“With its large economy and strategic location, Turkey offers huge opportunities for UK businesses. I am excited to begin discussions on how we can ensure our new trading relationship unlocks these opportunities.
“The UK’s services sector – from lawyers and accountants to engineers and financial professionals – represents around 80% of GDP. Our services exports reached a record £464bn in the 12 months to October 2023, an increase of 16% in current prices.” For the previous 12 months.
The UK aims to progress a series of innovative services-focused trade deals with countries including Turkey, Switzerland, Mexico, Canada, India and South Korea, as well as the Gulf Cooperation Council countries, in 2024. The agreements are designed to give British companies a competitive advantage in these countries. , increasing British services exports and supporting jobs across the UK.
While in Istanbul, Badenoch will also meet leading UK and Turkish investors, including Ford and Mott MacDonald, to discuss how the UK and Turkey can increase investment in sectors such as manufacturing, technology and transport, while leveraging £8.9bn of UK investment. in Türkiye and £720 million of Turkish investments in the United Kingdom.
Trade between the UK and Turkey reached £26.2 billion in the 12 months to June 2023, making Turkey the UK's 17th trading partner. UK services exports to Turkey in sectors such as transport, financial and other business services rose by 57% at current prices in the 12 months to June 2023.
