Britain concluded its first free trade agreement with Turkey since Brexit last Tuesday. Turkish Commerce Minister Ruhsar Pekan and British Ambassador to Turkey Dominique Chilcott have signed the agreement. Turkey and Britain have signed a free trade agreement as they prepare to leave the European Union's economic orbit at the start of the new year. The agreement will be effective from January 1.
Liz Truss, Britain's international trade secretary, and Ruhsar Pekkan, Turkey's commerce minister, met in a video call after the agreement was signed. Ruhsar Pekkan hailed the agreement as the most important trade agreement for Turkey since the signing of the Customs Union Agreement with the EU in 1995. He said the free trade agreement was a new and special milestone in relations between Turkey and Britain. Britain is now Turkey's second largest export market.
A statement from the British government said the agreement would protect existing tariffs for about 7,600 British traders exporting goods to Turkey. At the same time, it will ensure continuous flow of duty free goods.
The agreement will support .6 18.6 billion in trade relations in 2019 and move toward more ambitious trade deals in the future, the statement said. Trade agreements will be secured as a major victory for Britain's automotive industry and steel industry.
The new agreement will ensure preferred trading conditions for UK traders. It will export more than a few billion pounds of machinery and more than a million million pounds of iron and steel to Turkey. Both countries have said the agreement will lead to a more comprehensive agreement on future trade expansion. The new relationship between the two countries will expand the scope of duty-free trade. This will ensure thousands of jobs in the UK-made car and steel industry.
This is Britain's first post-Brexit trade deal with British Prime Minister Boris Johnson. Britain has the most trade with Turkey after Japan, Canada, Switzerland and Norway. Turkish President Recep Tayyip Erdogan announced after a cabinet meeting on Sunday that the landmark trade agreement between Turkey and Britain would usher in a new era in 2021 for both countries.
European Ford President Stuart Rowley welcomed the trade agreement between Britain and Turkey, saying it was of great importance to the economic prosperity of both countries. As Europe's leading commercial vehicle brand, Ford's engine manufacturer in Dagenham, East London, exports most of its diesel engines in a joint venture with Turkey's Ford Otosan. The engines are fitted to Ford transit vehicles, most of which are exported from Turkey to Britain.
