UK and Turkey pursue digital and data trade deal

Vision laid out by UK Business and Trade Secretary focuses on business agreements rather than easing migration rules between the countries

UK Prime Minister Rishi Sunak shakes hands with Turkish President Recep Tayyip Erdogan. PA

Turkey and the UK are chasing a trade deal that would deepen ties, widen exports and support growth.

British negotiators want an expanded free trade agreement that includes key sectors including digital, data and services, the UK government said on Tuesday.

The vision laid out by Business and Trade Secretary Kemi Badenoch on Tuesday focused on business agreements rather than easing migration rules between the countries.

“Turkey is an important trading partner for the UK 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 UK’s economic strengths,” she said.

“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.”

Ms Badenoch signed the accession protocol on Sunday to join the transcontinental Comprehensive and Progressive Agreement for Trans-Pacific Partnership – the UK’s biggest trade deal since leaving the EU.

The current deal with Turkey rolled over after Brexit but is restricted to trade in goods.

There could also be scope for securing cheaper imports from Turkey, particularly of fruits, vegetables and products such as olive oil.

Britain’s trade with Turkey was worth £23.5 billion ($30.7 billion) in 2022, but heavily favoured Turkey, with the UK importing £6.5 billion more than it exported, according to government figures.

Turkish exports to the UK include vehicles, clothes and electric machinery, while Britain sells power generators and metals to Turkey.

The UK is the second biggest services exporter in the world – second only the US – and the services sector contributes about 80 per cent of the country's gross domestic product.

The new deal could boost trade and help UK companies maximise opportunities in this area, driving economic growth – one of the priorities of Prime Minister Rishi Sunak’s government.

Simon Ward, president of Airbus Turkey, said: “Airbus and Turkey have been long-term strategic partners for almost 40 years and Turkey is a partner on all Airbus aircraft programmes, including the prestigious A350.

“Greater alignment on cross-border trade will improve competitiveness and provide opportunities for businesses across numerous sectors.”

Exports minister Lord Offord will visit Turkey later in July to discuss other potential opportunities.

Negotiations on an updated free-trade agreement are expected to begin in 2024.

Britain is the first new member and the first European nation to join the trans-Pacific bloc since it was formed in 2018. The bloc is made up of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The UK already has trade agreements with most of the CPTPP nations – other than Malaysia and Brunei.

British dairy producers will gain export opportunities to Canada, Chile, Japan and Mexico, while beef, pork and poultry producers will gain better access to Mexico’s market, according to officials.

Items that will become cheaper for UK consumers include Australian Ugg boots, kiwis from New Zealand, blueberries from Chile and Canadian maple syrup, according to the Institute of Export and International Trade.

A free trade agreement between the six countries of the Gulf Co-operation Council and the UK is also progressing.