An updated free trade agreement (FTA) between Türkiye and the United Kingdom is expected to enter force in the second half of 2026, according to the chair of the British Chamber of Commerce in Türkiye.
The sides this year held multiple formal negotiations aimed at modernizing their existing trade pact that was rolled over when Britain left the European Union in 2020.
The upgrade aims to move beyond the current goods-only agreement to include a "next-generation" framework covering services, fintech, digital trade and enhanced agricultural access.
"Everything is in the right direction, and the potential in Türkiye is very high," Chris Gaunt, the chair of the British Chamber of Commerce in Türkiye, said Thursday,
Gaunt noted that the U.K. is attractive for exporters, particularly tech startups, and Türkiye is equally attractive for British firms.
He said the process has entered its third stage.
"Turkish tech companies are going to the U.K. to set up their business, (where they can) access funding and capability, which are also very strong in the U.K.," he said.
"Everybody is focusing on AI, and the U.K. has very strong capability in AI, so it attracts Turkish companies."
The U.K. is the seventh-largest investor in Türkiye, Gaunt said, highlighting the long-standing positive relationship between the two countries.
Trade between Türkiye and the U.K. totals 28 billion pounds ($37 billion), according to the British government. That makes Türkiye the U.K.'s 17th-largest trading partner.
This trade supports more than 57,000 jobs, according to the latest data.
Gaunt said Türkiye currently holds an advantage in the trade balance, estimating that the trade volume consists of 60% Turkish exports and 40% British shipments.
He added that the agreement is expected to further boost trade and help balance overall trade volumes.
"Türkiye is a priority market for the U.K., and the agreement will bring more confidence to more investors once it's signed," he said. "The future looks positive."
