FTA supports Turkey-UK trade target of $20 bln

The free trade agreement signed by Turkey and the United Kingdom on Dec. 29 will make the two countries' bilateral trade target of $20 billion reachable, a top Turkish official said on Dec. 30. 

After reaching the post-Brexit trade deal with the European Union last week, the U.K. signed the first free trade agreement with Turkey as a gesture that shows the strength of their commercial relations, Osman Okyay, head of the Turkey-U.K. Business Council of the Foreign Economic Relations Board (DEİK), told Anadolu Agency.

If the agreement had faced any delay, Turkey's trade volume with Britain would suffer, he added.

Turkey could not be a part of the free trade agreement between the EU and the U.K., which necessitates the update of the customs union immediately, Okyay stated.

The free trade deal inked by Turkey and the U.K. will take effect from Jan. 1, 2021.

Without the deal, about 75 percent of Turkish exports to the U.K. would be subject to tariffs, causing losses of some $2.4 billion.

In 2019, Turkey's exports to the United Kingdom - its second-largest export market behind Germany - stood at $11.3 billion, while imports totaled $5.6 billion.

The U.K.'s investments in Turkey are around $11.6 billion.

In the first 10 months of this year, Turkey's exports to the U.K. reached $8.8 billion, while imports from Britain was just half of that volume - a trade plus of $4.4 billion for Turkey.

"We are taking the first step towards further deepening our ties while maintaining 25-year gains from the customs union," Turkish Trade Minister Ruhsar Pekcan said at the signing ceremony on Dec. 29, referring to Turkey's 1995 customs union deal with the EU from which Britain is making its...