Talks on a massive new trade deal have been launched with Turkey in another major Brexit boost.
Kemi Badenoch said the upgraded tie-up will help boost the economy and support thousands of jobs in the UK.
The pact will give full access to one of the world’s fastest growing economies which is worth £800 billion.
Mrs Badenoch said: “I’m delighted to be launching trade negotiations with Turkey – an important economic and strategic partner to the UK.
“We already have a thriving trade relationship that will only get stronger with a new, modernised trade deal that is fit for the 21st Century.
“An upgraded deal will give the UK’s world-leading services sector a competitive edge in this growing market and has the potential to support jobs across the UK.”
The announcement comes hot on the heels of the Business and Trade Secretary signing a bumper trade pact with Texas this week.
Mrs Badenoch launched the talks in London today alongside her Turkish counterpart Minister for Trade Ömer Bolat.
The current trade deal, which was largely negotiated in the 1990s, with Ankara inherited after the UK left the EU was rolled over after Brexit and only covers goods.
The UK wants to modernise the agreement to include sectors such as services, tech and digital.
Turkey is already a top 20 trading partner for Britain, with trade between the two countries reaching £26 billion last year.
UK services exports to Turkey also jumped by 54 percent to £2.1 billion in 2022.
It is hoped a new agreement tailored to Britain’s strengths as a services superpower will provide a further boost.
It will focus on the UK’s strengths in services, which make up 80% of GDP.
In 2020, 57,000 UK jobs were supported by exports to Turkey – 68% of which were in services.
While both countries have been keen to expand their trading relationship, talks were held up because of the Turkish election last year.
The UK and Turkey have had strong ties through their relationship in NATO.
Turkey presents significant opportunities for British businesses, particularly in transport, engineering, financial services, manufacturing and tech, driven in part by Turkey’s decarbonisation efforts and significant investment in rail.
The UK is the second biggest services exporter in the world – behind only the US – but services only made up 27% of our exports to Turkey in 2022.
It comes as a free trade agreement with India is on the horizon, while Britain earlier this year joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Indo-Pacific trade bloc in the biggest post-Brexit deal to date.
UK businesses such as Deloitte have helped to shape negotiation objectives with the first round of negotiations due to take place in the summer.
Managing Director, International at TheCity UK Nicola Watkinson said: “Turkey is a strategic gateway between the East and the West, offering vast opportunities for growth and innovation that UK businesses can leverage.
“An enhanced Free Trade Agreement with Turkey that includes services and digital will open up new trade and investment opportunities for financial and related professional services, as well as laying the groundwork for more robust bilateral relations and a frictionless trade environment that benefits both nations.”
Managing Director at Burgess and Leigh Ltd Jim Norman said: “Burleigh is in the early chapters of its’ exporting story to Turkey, but we’re already seeing strong demand opening up.
“A more open trade deal is going to help smooth that growth by reducing paperwork and delays. Burleigh’s appeal comes from it’s provenance, heritage and authenticity which are appealing to Turkey’s discerning consumers and particularly important in gift giving.”
