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The free trade agreement between Türkiye and the United Kingdom is expected to enter into force in the second half of 2026, with negotiations now in their third phase, British Chamber of Commerce in Türkiye (BCCT) Chairman Chris Gaunt said.
"We will most likely see the free trade agreement between Türkiye and the U.K. implemented in the second half of 2026," Gaunt told state-run Anadolu Agency (AA) on Thursday.
"Everything is moving in the right direction and the potential in Türkiye is still very high. The U.K. is extremely attractive for exporting companies, and Türkiye is extremely attractive for companies in the UK," Gaunt added.
Gaunt said trade relations between Türkiye and the U.K. remain strong, with bilateral trade volume currently at approximately $26 billion and expected to grow.
"I estimate that of the approximately $28 billion trade volume, 60% is Türkiye's exports to the U.K. and 40% is the U.K.'s exports to Türkiye," Gaunt said, adding, "Türkiye is more advantageous in the import-export balance."
"The U.K. is currently the seventh-largest investor in Türkiye," Gaunt noted.
"According to the latest data, the trade volume between Türkiye and the UK is at $26 billion, and I expect this to increase. I cannot give a precise figure, but according to the information we receive, Turkish firms exporting to the U.K. have increased their business volumes," Gaunt said.
Trade volume between the two countries has increased every year over the past decade, and Gaunt said this trend is expected to continue in 2025.
Gaunt said the free trade agreement, once finalized, will include additional sectors and strengthen bilateral trade relations.
"The Free Trade Agreement is almost complete and has entered the third phase. With new sectors coming into play, this agreement will increase bilateral trade and also contribute to the U.K., Gaunt said.
New sectors to be covered include technology, FinTech, general technology and construction technologies.
Gaunt highlighted the UK's appeal for Turkish technology and startup companies by stating, "The UK is very attractive, especially for technology and startup companies, because it has one of the largest technology startup ecosystems outside the U.S. At the same time, it is an important financial center for obtaining funding."
"Turkish technology companies can go to the UK to set up their businesses to access funding and also benefit from the technological competencies that are very strong in the U.K.," he noted.
"Right now, everyone is focused on artificial intelligence, and the U.K. has a very strong capacity in this field. This attracts Turkish companies," Gaunt added.
Gaunt said Türkiye is a priority market for the U.K., saying, "When the Free Trade Agreement is signed, investor confidence will increase and more investors will be attracted. The future looks extremely positive."
"Of course, we want this balance to become more equal over time," Gaunt said regarding the trade surplus in Türkiye's favor. "The relationship between Türkiye and the U.K. will continue to strengthen in the coming period," he concluded.
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