Türkiye and the United Kingdom are expected to launch discussions on a new, modernized free trade agreement to further strengthen the already-booming trade ties, a statement said Tuesday.
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 (FTA) with Türkiye, which was rolled over when Britain left the European Union, which the Trade Ministry said was now outdated.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 E.U.
A review of that agreement has resulted in both sides concluding that there is room for improvement with a new deal, the ministry said. However, negotiations are not expected to formally begin until next year.
The countries have a trading relationship that was worth 23.5 billion pounds ($30.7 billion) last year. Business and Trade Secretary Kemi Badenoch said Britain would use the talks to tailor a new FTA to Britain's economic strengths.
"I look forward to using the deal to deepen the UK-Turkey trading relationship, drive economic growth and support businesses up and down the country," she said in a statement.
Any deal could address issues pertaining to goods, such as current quotas on Turkish exports such as olive oil, and well as expand into services, digital and data.
The British government said it would look for input from businesses about their priorities before the talks begin.
"The announcement follows a call between U.K. Business and Trade Secretary Kemi Badenoch and Turkish Minister for Trade Ömer Bolat last week, where they committed to negotiating a new deal and deepening the trade relationship between the two countries," British Consulate-General's Department for Business and Trade said in a statement.
The joint committee between the two countries was expected to hold a meeting in the capital Ankara on Tuesday to launch work on the agreement, the statement added.
"Türkiye is an important trading partner for the U.K. and this deal is the latest example of how we are using our status as an independent trading nation post-Brexit to negotiate deals that are tailored to the U.K.'s economic strengths," Badenoch said.
The U.K.'s exports minister Lord Offord is expected to visit Türkiye later in July and meet with businesses and relevant parties to talk about investment and export opportunities.
The U.K.'s Trade Commissioner to Türkiye Kenan Poleo said that the new FTA would be a "unique opportunity" to cover new areas for the benefit of Turkish and British businesses.
Meanwhile, U.K. Ambassador to Türkiye Jill Morris said that the two countries are natural partners and allies and that the announcement exemplifies the "ongoing strength of that relationship."
