The United Kingdom-Turkey Free Trade Agreement (“FTA”) was signed on 29 December 2020 during the ceremony that Turkey’s
Minister for Trade, Ruhsar Pekcan and the United Kingdom’s Secretary of State for International Trade have participated
via video-conference. The provisions of the FTA will come into effect as of 1 January 2021.
The Brexit process, defined as the process of the United Kingdom’s exit from the European Union (“
EU”) following the
referendum made on 23 June 2016, is to end on 1 January 2021. Subsequently, the Customs Union relationship between the
United Kingdom is also going to end as of 1 January 2021. With this FTA; the commercial opportunities and benefits
provided by the Customs Union are preserved and the first steps aimed at reestablishing the trade regime between the two
countries are taken.
Scope of the Free Trade Agreement
The United Kingdom has been Turkey’s second-biggest export market for the year 2019, at the volume of 11,2 billion
dollars, and became one of the countries with the biggest trade surplus Turkey has, by becoming one of the most
prominent markets for export in many sectors, especially for automotive, televisions, household appliances and textiles
and electrical equipment.
With the FTA that is signed with the purpose of preserving and strengthening the current trade relationship between the
countries, the tariff rate for industrial products has been brought to zero and the concessions granted to the EU
regarding agricultural products and processed agricultural products have been scaled and reflected in these new
commercial relations. Additionally, the provisions of the FTA have been drawn up in a manner that would include all
agricultural and industrial products.
Accordingly, subheadings under the FTA are as follows:
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Regulations on Access to Market and Origin for Trade in Goods,
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Customs and Facilitation of Trade,
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Technical Barriers to Trade,
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Commercial Policy Measures
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Sanitary and Phytosanitary Measures,
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Competition,
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Public Procurement,
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Intellectual Property Rights
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Administrative and Institutional Provisions and Dispute Settlement
Finally, with a provision added to the FTA; an agreement has been reached to expand the deal's scope to include areas
such as services, investments and advanced agricultural concessions in the near future and the matters regarding mutual
cooperation are touched upon.
Please click
here to access the text of the announcement of the Ministry of Trade of the Republic of
Turkey.
Nur Duygu Bozkurt Kadirhan, Senior Associate
Burak Batı, Associate
İrem Tanık, Legal Intern