Türkiye, UK Advance Toward Next-Generation Free Trade Agreement

Türkiye and the United Kingdom are advancing negotiations to establish a comprehensive, next-generation free trade agreement (FTA) that would replace the current pact in effect since 2021. Following a productive second round of talks in September, both nations have scheduled a third negotiation round for November 2025, aiming to deepen economic integration and modernize their trade relationship.

Expanding Goods and Services Trade

The recent negotiations have concentrated on enhancing trade in goods, with discussions on new market openings for agricultural products and improved cooperation on health and plant health measures. The talks also targeted streamlining customs procedures to facilitate smoother cross-border trade. In the services sector, key agenda items included financial and telecommunications services, legal and maritime transport services, and digital trade, with a focus on secure data flows and investment protection.

Building a Modern Trade Framework

The prospective agreement is designed to facilitate trade in services and investments, ensure legal predictability, and reduce commercial costs through closer integration, particularly in the digital economy. Negotiations have also covered intellectual property rights, regulatory practices, and provisions related to labor and the environment. The UK Department for Business and Trade reported "positive progress" on several fronts, including digital trade and professional business services.

Strategic Economic Partnership

The trade relationship is of significant strategic importance to both Ankara and London. The UK market, with its 69 million consumers, is a critical destination for Turkish exports. In 2024, the bilateral trade volume hit $22 billion, making the UK Türkiye's seventh-largest trading partner and generating an $8 billion surplus for Türkiye. For the UK, strengthened trade with Türkiye is expected to boost national prosperity and support tens of thousands of jobs.