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In the coming days, Türkiye and the United Kingdom—two key NATO allies—will take a significant step in their economic ties as they launch the first round of negotiations to modernize their free trade agreement (FTA).
Türkiye and the United Kingdom are preparing to update their FTA in a move aimed at deepening economic ties and expanding cooperation into new areas. The decision follows talks held between the two countries’ trade ministers in London in May.
The original deal was signed on Dec. 29, 2020, shortly after the U.K. formally left the European Union. It covered mainly industrial products and was necessary to preserve trade links after the EU-Türkiye Customs Union no longer applied to Britain. But a joint review in 2023 concluded that the agreement needed to be broadened.
Trade between the two partners has grown steadily, reaching around £28 billion ($37.87 billion) in 2024. Türkiye is now the U.K.’s 16th largest trading partner, while British exports to Türkiye total £9.3 billion, supported by the U.K.’s strong services sector. Services alone made up 34% of U.K. exports to Türkiye that year.
The updated FTA is expected to address technical barriers in strategic sectors that represent a third of overall trade, creating a framework for faster, more transparent, and more secure commerce between the two NATO allies.
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