Economic relations between Türkiye and the United Kingdom are gradually strengthening, Trade Minister Ömer Bolat said on Wednesday, conveying that they believed "we have enough ambition, motivation and driving force to sign the modernized free trade agreement (FTA) soon."
Bolat made these remarks at the Türkiye-U.K. Business Forum, which was organized by the Foreign Economic Relations Board (DEIK) and the Institute of Directors (IOD) in London.
The minister emphasized that trade tensions between the U.S. and China, the war in Ukraine and Israel's genocide in Gaza have created uncertainties in global markets, disrupted supply chains and harmed global economic growth, but Türkiye's economy has continued to grow strongly despite a difficult period due to protectionist trade policies and regional uncertainty.
The Turkish economy has shown uninterrupted growth for 18 consecutive quarters, with 3% in the last quarter of 2024, he said, adding that the Turkish economy's size has exceeded $1.3 trillion, with a national income per capita exceeding $15,000.
He said exports continue to be the driving force behind the Turkish economy's growth, with exports surpassing $262 billion last year, contributing to a $24 billion reduction in the foreign trade deficit.
The minister also highlighted Ankara's bilateral trade relationship with London, saying the U.K. is Türkiye's third-largest export destination, with exports totaling $15.3 billion.
He recalled that Türkiye imported $6.9 billion in goods from the U.K. last year, and that the country has a strong investment incentive program with a high productivity focus.
Türkiye has become a center for many international companies because it provides investors with a well-protected business environment and one of the world's largest free trade agreements, he said.
The minister added that British companies' investments in Türkiye reached $9 billion in 2023 and that "this is a clear indicator of the confidence of British investors in the growth and potential of the Turkish economy."
Noting that Turkish companies have invested $4.3 billion in the U.K., Bolat said the contracting sector is one of the most important.
"These investments are a successful result of the cooperation between the public and private sectors of the two countries.
"I congratulate all parties who contributed to this positive outcome. Despite these significant figures, we believe that Türkiye-U.K. cooperation as strategic partners still has high potential. Updating the FTA and expanding it to new areas will be an important opportunity to strengthen this economic cooperation," he said.
He highlighted that important steps for the two countries' trade were taken as part of the delegation's meeting with U.K. Secretary of State for Business and Trade Jonathan Reynolds on Wednesday and that the "Technical Barriers to Trade" chapter and the "Chemicals and Motor Vehicles" annexes to this chapter were signed.
"These agreements aim to remove technical barriers that prevent trade between the two countries, which accounts for roughly one-third of our $22 billion mutual trade, or approximately $7.5 billion.
"Thus, automotive products and chemicals, in particular, have an easier time entering the U.K. market. It is an agreement that removes technical barriers, and the U.K. accepts Turkish standards as compliant," Bolat explained.
The first round of negotiations to renew the FTA between Türkiye and the U.K. is scheduled to begin in July, he said.
