Türkiye and the United Kingdom are gearing up for negotiations to update and expand the scope of their existing free trade agreement, according to a senior official Tuesday.
The intention to launch discussions on a new, modernized deal was first announced in mid-July. Britain said it intends to start talks to refresh the deal to include services and the digital sector in any future agreement.
The U.K. already has a free trade agreement with Türkiye, which was rolled over when Britain left the European Union, which the sides said was now outdated.
That deal did not cover services, digital and data, but was considered the most important trade deal since Türkiye's 1995 Customs Union with the EU.
Osman Koray Ertaş, Türkiye's ambassador to London, emphasized the significance of the current agreement as the first free trade deal signed by the U.K. following its exit from the EU.
Ertaş stated that the aim is to update and broaden the scope of the current deal, highlighting that the trade volume between Türkiye, and the U.K., the world's sixth-largest economy, reached $18.9 billion in 2022.
The U.K. is one of Türkiye's top five export markets.
"The FTA has helped maintain the current conditions for entry into the United Kingdom, one of our most important export markets, and ensured that our exporters can sustain their competitiveness in this market," said Ertaş.
Furthermore, the envoy indicated the mutual declaration of intent, made in a joint statement issued in July, to expand the scope of the deal.
"In the framework of the review clause in the agreement, we have started efforts to expand and update the existing FTA to include additional areas," he told Anadolu Agency (AA).
"There is a strong political will on both sides in this regard. Work on the technical aspects of the negotiations is ongoing in both countries."
Ertaş said the U.K. had initiated a consultation process to gather the opinions of the business community and the public, which will conclude on Jan. 5, 2024, before the negotiations start.
"We are continuing this process on our side. We hope to start negotiations as soon as possible once the necessary preparations in both countries are completed," the ambassador noted.
Ertaş explained that the updated deal aims to cover areas beyond the trade in goods, including service trade, investments and e-commerce, stressing that they also aspire to secure additional concessions in the agriculture sector.
Officials earlier said any deal could address issues pertaining to goods, such as current quotas on Turkish exports such as olive oil, as well as expand into services, digital and data.
Emphasizing that the modernization will provide opportunities to further increase exports and mutual trade, Ertaş said: "Our commercial and economic relations will strengthen further in line with our strategic partnership."