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Türkiye-UK trade deal to unlock $8B in auto, chemical exports, says industry leader

Aerial view of container operations at Izmir Port, a key logistics hub in western Türkiye, accessed on May 8, 2025. (AA Photo)
Aerial view of container operations at Izmir Port, a key logistics hub in western Türkiye, accessed on May 8, 2025. (AA Photo)
May 09, 2025 02:23 PM GMT+03:00

Newly signed protocols under the Türkiye-U.K. free trade agreement (FTA) are expected to boost bilateral trade by removing technical barriers in the automotive and chemical sectors, which together account for around $8 billion in trade volume, Turkish industry leaders say.

On Wednesday, the two countries signed the “Technical Barriers to Trade” chapter in London, along with annexes covering chemicals and motor vehicles. These additions are aimed at simplifying regulatory procedures and promoting faster, more transparent trade across sectors that represent nearly one-third of the $22 billion in total trade between Türkiye and the United Kingdom.

The changes are designed to ease mutual recognition of regulated products, reduce bureaucratic burdens, and lower operational costs for exporters in the affected sectors.

The announcement came during Trade Minister Omer Bolat’s visit to the U.K., where he met with U.K. Secretary of State for Business and Trade Jonathan Reynolds.

Turkish Trade Minister Omer Bolat meets with UK Secretary of State for Business and Trade Jonathan Reynolds and their delegations during bilateral talks in London, UK, on May 7, 2025. (Photo via X/omerbolatTR)
Turkish Trade Minister Omer Bolat meets with UK Secretary of State for Business and Trade Jonathan Reynolds and their delegations during bilateral talks in London, UK, on May 7, 2025. (Photo via X/omerbolatTR)

Technical barriers removed to facilitate faster, safer trade

Vehbi Keles, head of the Union of European Turkish Brands (ATMB), said the updated protocols will provide Turkish exporters with stronger market access and support momentum in key industries.

"This year, in the first four months alone, Türkiye’s exports to the UK increased by 21%, reaching $5.3 billion. These figures demonstrate the rapid growth of Turkish brands in the market, but there is still significant untapped potential," Keles said.

Haydarpasa Port handles container traffic in Istanbul, Türkiye on July 22, 2019. (Adobe Stock Photo)
Haydarpasa Port handles container traffic in Istanbul, Türkiye on July 22, 2019. (Adobe Stock Photo)

He emphasized that the newly signed chapters have a direct positive impact on the automotive and chemical sectors. “Technical barriers may not be visible, but they slow down transactions. These agreements will help eliminate those barriers and contribute to more efficient, lower-cost, and transparent trade processes,” he added.

Turkish companies urged to prepare for UK market standards

As competition intensifies, Turkish brands have the opportunity to gain a stronger foothold in the U.K. by leveraging their strengths in quality, cost, and speed. However, Turkish industry leaders caution that sustained success requires full compliance with local standards and regulations.

Keles stated that the removal of technical barriers does not mean that firms can enter the U.K. market without preparation. “Turkish companies must familiarize themselves with UK product standards, certification requirements, and customs procedures. For industrial and chemical products in particular, regulatory compliance and product safety documentation are essential,” he said.

He also highlighted the U.K.’s dynamic business environment, quick decision-making structure, and consumer diversity as advantages for companies aiming to build brand identity and scale direct sales.

“Firms that combine product quality with effective communication strategies can build customer loyalty in a short time,” he noted.

Broader negotiations to update the Türkiye-UK FTA are scheduled to begin in Ankara in July and are expected to be a long-term, multi-layered process.

May 09, 2025 02:23 PM GMT+03:00
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