UK–Türkiye business dialogue advances ahead of FTA modernization talks
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Business and political leaders from Türkiye and the United Kingdom gathered this week for two high-level meetings in London, both underlining the urgency of modernizing the countries’ existing free trade agreement (FTA) and expanding economic cooperation.
The Independent Industrialists' and Businessmen's Association (MUSIAD), a prominent Turkish business group, hosted a roundtable at the British Parliament’s House of Lords on Wednesday to spotlight obstacles in bilateral trade. Titled “Business Without Barriers: Removing Obstacles in UK–Türkiye Trade," the event brought together over 10 British parliamentarians along with investors, business leaders, and industry representatives from both countries.
MUSIAD President Burhan Ozdemir said Türkiye stands out as a strategic partner for the U.K. thanks to its strong production base and advantageous location. “Türkiye is a natural bridge between Europe, Asia and the Middle East. We combine this advantage with production, exports and entrepreneurship,” he said.
Ozdemir emphasized that MUSIAD represents about 35% of Türkiye’s industrial and trade output through its 14,000 members and over 60,000 affiliated companies. He called for a more inclusive FTA, arguing that combining Türkiye’s manufacturing strength with the U.K.’s leadership in services could generate joint value, especially in areas such as digital, financial and professional services. “We are ready to actively contribute to this process,” he added.
FTA limitations hinder SMEs, say Turkish-British representatives
Tukan Akbas, chairwoman of MUSIAD U.K., pointed out that the current FTA covers only trade in goods, excluding critical areas like services, public procurement, and digital trade. She argued that this particularly restricts small- and medium-sized enterprises (SMEs), which struggle with complex visa procedures, limited access to tenders, and regulatory mismatches.
“In 2024, bilateral trade reached £27.8 billion ($38 billion). With comprehensive modernization, this figure could increase by 25%,” she said. “The UK’s financial and digital strength combined with Türkiye’s manufacturing capability can build a much stronger economic architecture.”
During the session, several participants—including U.K.-Türkiye Trade Envoy Afzal Khan, Türkiye’s Ambassador Osman Koray Ertas, HSBC’s Global Trade Solutions Director Stephanie Betant, and sectoral representatives—expressed support for quickening the pace of negotiations to broaden the deal.
Ozlem Bacak, secretary-general of MUSIAD U.K., stressed the importance of including green production and circular supply chains in the updated agreement, adding, “Modernizing the FTA is an environmental as well as economic necessity.”
British-Turkish FTA talks to begin soon: Türkiye’s Ambassador to the UK
Later the same day, Türkiye’s Ambassador to the U.K. Osman Koray Ertas, also addressed the Leadership Circle reception, hosted by the UK Asian Business Council and the European Turkish Brands Association (ATMB) at Westminster’s Churchill Room.
Ambassador Ertas confirmed that technical talks on revising the FTA are about to begin following over a year of preparation. “The support of UK Trade Envoy Afzal Khan has been crucial,” he said, adding that strengthening parliamentary dialogue, diaspora involvement, and British investor participation will be key to future progress.
He also noted that although Türkiye and the U.K. are not EU members, both are influential NATO allies. “This cooperation will not only boost economic welfare but also contribute to the continent’s broader security and stability,” Ertas said.
Targeting $68B in trade with diaspora support
ATMB President Vehbi Keles emphasized that most Turkish businesses operating in the U.K. are led by second- and third-generation entrepreneurs, and updating the FTA could push bilateral trade to £50 billion ($68 billion) in the medium term.
Tahir Ali, head of the U.K.-Türkiye Parliamentary Group, echoed growing interest in Turkish enterprises across the country. “This shows our relationship can deepen further. We will keep building this bridge,” he said, citing the over 400,000-strong Türkiye-origin population in the U.K. as a vital link.
Baroness Uddin, who also hosted the MUSIAD roundtable, stressed that global trade is shifting, with digital connectivity redefining ties between Europe and Asia. “If Turkish craftsmanship meets Asian innovation, a new economic corridor can be built,” she said.
Taha Coburn-Kutay, chair of the U.K. Asian Business Council, called for greater visibility of Turkish brands throughout the U.K., especially in regions like Northern Ireland, Manchester, and Birmingham, noting that geographical diversity offers untapped potential.
Kaynak : Turkeytoday
