Trading Forward: Türkiye–UK Economic Ties Enter a New Chapter

As geopolitical shifts redefine trade routes and alliances, Türkiye and the UK are seizing the moment to reimagine their economic relationship. With new agreements on the horizon, the stage is set for a modernised partnership built on mutual ambition.

A Critical Meeting in London

In early May 2025, a high-profile delegation from Türkiye, led by Trade Minister Ömer Bolat, arrived in London for a strategic engagement with the UK government. The occasion marked more than just another diplomatic visit. With discussions centred on the future of trade, investment, and regulatory alignment, the meeting signalled a pivotal moment in bilateral relations—one aimed at recalibrating the 2020 post-Brexit Free Trade Agreement (FTA) and widening its scope beyond industrial goods.

Unfinished Business: Updating the 2020 Free Trade Deal

The original FTA, hastily signed in the aftermath of Brexit, largely focused on industrial products. While it preserved continuity in trade flows, both sides quickly recognised its limitations. Services, digital trade, agriculture, and investment were left on the sidelines.

Now, with bilateral trade reaching nearly £28 billion annually—and Türkiye emerging as the UK’s 16th largest trading partner—the need to modernise the deal has become pressing. The agreement to launch formal negotiations by July 2025 reflects not only a shared sense of urgency but also a renewed diplomatic chemistry between Ankara and London.

Minister Bolat, during his London visit, met with UK Secretary of State for Business and Trade Jonathan Reynolds. Their joint statement underlined a “shared ambition” to boost economic ties and support a “rules-based and transparent trading environment.” Most notably, they signed updated provisions on Technical Barriers to Trade (TBT), including sectoral annexes for motor vehicles and chemicals—an essential first step toward mutual recognition of technical standards and smoother regulatory pathways.

The Digital and Green Dimensions

One of the standout ambitions of the new talks is the inclusion of digital services, a domain previously excluded from the existing deal. As the UK continues to position itself as a global services hub and Türkiye expands its digital economy, a digital trade chapter could significantly lower transaction costs, enhance cybersecurity cooperation, and open doors for SME participation on both sides.

Another key area is green technology and sustainable supply chains. With both nations committed to climate goals and circular economy principles, the expanded FTA could introduce cooperation mechanisms in renewables, battery technology, and energy-efficient manufacturing.

Numbers Behind the Partnership

Türkiye’s exports to the UK rose by 21% in the first quarter of 2025, reaching $5.3 billion, according to Avrupalı Türk Markalar Birliği. The UK’s £1 billion investment by Eren Holding Group in North Wales (Shotton Mill) has been hailed as a flagship example of mutually beneficial collaboration.

On the services front, however, the UK remains underexposed: only 34% of exports to Türkiye are services, despite the UK being the second-largest global exporter in this domain. That gap is now seen as both a challenge and an opportunity.

With over 7,800 UK companies currently exporting to Türkiye, and Turkish firms maintaining $4.3 billion in UK investments, the financial framework is already well-established. The challenge lies in unlocking the untapped potential in sectors such as fintech, education, medical services, and high-end consultancy.

What’s Next? The July Negotiation Table

The upcoming JETCO (Joint Economic and Trade Committee) meeting in London later this year will serve as a focal point for new sectoral priorities, ranging from agriculture and food safety to e-commerce and customs facilitation. The UK’s post-Brexit strategic pivot has given Türkiye new leverage as a gateway to the wider Middle East and Africa, while Türkiye looks to the UK as a partner beyond the EU orbit.

DEİK Chairman Nail Olpak summed it up succinctly during the UK–Türkiye Business Forum:

“This isn’t just about tariffs or quotas anymore. It’s about resilience, tech collaboration, and global positioning.”

A Partnership Ready for Reinvention

In a world defined by disruption—be it war, inflation, or protectionism—the Türkiye–UK trade relationship stands out as pragmatic, complementary, and full of potential. The road to July’s FTA negotiations is not merely procedural; it is geopolitical.

As both nations look to bolster their post-pandemic recoveries and reposition themselves in a shifting global order, trade could once again become a powerful instrument of diplomacy, prosperity, and mutual respect.