BREXIT AND THE Türkiye-UK FREE TRADE AGREEMENT

Rıza Mehmet KORKMAZ
UGM General Manager

 1.BREXIT PROCESS:

One of the most important events of 2020 was undoubtedly Brexit, which means the departure of the United Kingdom from the EU. The United Kingdom, which became a member of the EEC as it was then known, in 1973; mainly due to political and economic reasons such as anti-immigrant sentiment, which has reached 75% in the country, the financial burden of EU membership, and the UK being on the losing side most of the time in the decisions taken by the EU (12% of the decisions taken by qualified majority between 2009-2015). He had already been vocally talking about leaving the EU for 10 years.

This developing anti-EU sentiment resulted in the decision to leave the EU with 51.9% of the UK people voting in favor after the referendum held on 23 June 2016. On the other hand, the majority of the votes of those who did not want to leave the EU in Northern Ireland and Scotland, which are the constituent states of the United Kingdom, made the Brexit process even more painful. The official separation process began on 29 March 2017, when Prime Minister Theresa May sent a letter to Brussels requesting the implementation of Article 50 of the Lisbon Treaty. The EU-UK Brexit negotiation process was concluded on 14 November 2018 and an agreement was reached on the Withdrawal Agreement. The agreement was approved first in the UK Parliament on January 9, 2020, and then in the EU Parliament on January 29, 2020. As a result, Brexit took place as of January 31, 2020, and the 'Transition Period', which is expected to end on December 31, 2020, began. During this time, the UK was treated as an EU member state in terms of trade; Thus, our country maintained its position as a Customs Union partner within the same period.

Although there were discussions about whether Brexit would be with or without a deal while the Transition Period continued, the negotiations between the parties resulted positively with the signing of the agreement on 25.12.2020. The transition process, which started in 2020, was concluded at the beginning of 2021 with the signing of the mutual separation agreement on 24.12.2020.

Thus, Brexit, which resulted positively for the UK, and the FTA signed with the EU are a double benefit. Because the United Kingdom, which has become both an independent actor from the European Court of Justice and an actor that has freed itself from EU rules, has become in a position to control and limit free movement in its country with its point-based immigration system. In addition, regarding fisheries, which was the subject of long negotiations, the UK has the right to catch two-thirds of the fish in its own waters within five years. In this way, the UK not only limited free movement on its territory, but also gained the opportunity to avoid being harmed by trade with the FTAs ​​it would sign independently of the EU. In this context, we can say that the process is progressing positively for the UK.

2. GENERAL FEATURES OF THE EU-UK FREE TRADE AGREEMENT:

The FTA between the UK and the EU is one of the most important commercial cooperation agreements of recent times, both in terms of its size and the results it will create.

With this Agreement, when the UK left the EU, one of the most important political projects in world history, it not only left a political union, but also announced to the world that it would follow a commercially independent policy by leaving the customs union, and that it would conduct commercial relations between the two parties on a sustainable and fair trade basis. has done; It has shaped bilateral commercial relations according to its own interests by focusing on FTA negotiations with more than 60 countries.

While evaluating the FTA signed between the two parties, it is useful to examine the UK's foreign trade figures. In this context, when we look at the UK's foreign trade figures; According to Trademap data, we see that the UK ranked 5th in world imports with a 3.6% share in 2019, 11th in world exports with a 2.5% share, and is generally a country with a constant deficit in goods trade.

The main products of which the UK is a net importer are; food, petroleum and petroleum products, motor vehicles, non-oil raw materials, clothing, shoes, electrical machines, non-electrical machines, furniture and lighting products.

The products of which the UK is a net exporter are; pharmaceutical products, optical and medical devices, chemicals, beverages, especially whiskey, aviation and spacecraft components and parts, iron and steel, copper, rawhide and technical textiles.

The UK's net importer position in goods trade, in a sense the dependence of its economy on imports, brought about an approach that would not interrupt the existing trade in the signed FTA, and a continuity agreement emerged in general terms.

We can summarize the basic features of the FTA signed between the parties under some main headings as follows;

Tariff and Quota: The UK and the EU will have mutual tariff-free and quota-free access to each other's markets. In this form, the agreement between the EU and the UK is the EU's first zero-tariff, zero-quota agreement.

Trade: UK manufacturers will have to comply with EU and UK standards.

Origin Practices: Products originating in line with modern and appropriate rules of origin will be imported tax-free. Electric vehicles originating from the UK, which has been much discussed before, will also be able to benefit from tax exemption.

Full bilateral cumulation will be allowed between the two parties, and mutual party inputs will not prevent the acquisition of origin. The agreement allows the declaration of origin to be made in a simplified form in the form of an invoice declaration. (self-certification).

According to the statement made by the UK authorities; Cross cumulation, in which products originating from Japan and Turkey, which have agreements with both the EU and the UK, can be used as originating inputs in goods produced in the UK, has not been accepted by the EU.

Type Approval Procedures: For motor vehicles and parts, the parties will mutually accept type approvals based on UN regulations.

AEO-YYS Mutual Recognition: The mutual recognition mechanism for AEO-YYS companies will be operated in the coming period.

Common Transit: The UK will remain in the common transit agreement, which is currently implemented by 35 countries in Europe, along with Turkey, and will continue to use the NCTS System (new computerized transit system).

3.TURKEY-UK FREE TRADE AGREEMENT:

In parallel with the FTA process signed between the EU and the UK, the FTA negotiations between our country and the UK were completed quickly and resulted in the signing of the Agreement on 29.12.2020. As of 01.01.2021, the Türkiye-UK Free Trade Agreement temporarily entered into force, and then the approval process in our country was completed.

Agreement; The CU conditions are a continuation of the Association Council Decision and the Turkey-EU ECSC FTA, which regulate agricultural concessions with the UK, and at this stage they only cover trade in goods. For this reason, it would be correct to describe the UK-Turkey FTA as a continuity agreement prepared primarily for the purpose of not disrupting the existing trade of the parties. The fact that the advantages provided after the Customs Union have been maintained with this agreement without suffering any significant loss has significantly relieved our exporters, who will be most affected by the tax rates that will be applied in the event of a no-deal Brexit.

In the agreement, customs duties on industrial products were zeroed in accordance with the concessions obtained with the Customs Union; Existing tariff quotas with the EU in agricultural and processed agricultural products were scaled by 17% and subjected to mutual concessions with the UK, and the continuation of the existing conditions with the EU in terms of tax reductions and exemptions was ensured at the bilateral level with the UK.

This agreement signed with the UK, Turkey's 3rd largest trade partner, is in many respects the most important and comprehensive commercial cooperation agreement after the Customs Union agreement signed by Turkey with the EU. The agreement with the UK, which ranks 2nd in Turkey's exports, has a serious foreign trade surplus, and has a foreign trade volume of over 18.9 billion pounds (according to 2019 UK data, 10.6 billion pounds of exports, 8 billion pounds of imports), should be signed without delay. It is an important achievement that it was done.

It should not be forgotten that after Brexit, the UK is no longer a member of the EU, nor is it a member of the Customs Union. In this new level, in trade between the two countries, rules of origin within the framework of the FTA will be in effect, not the principles of free movement of goods. It will be a period when origin practices will become extremely important. Cross cumulation is out of the question at this stage. Only bilateral cumulation, that is, tax-free trade of goods subject to trade between the UK and Türkiye, will come to the fore.

At this stage, the agreement relates only to trade in goods. It envisages zeroing mutual taxes on industrial products and zeroing or reducing taxes on agricultural products. Willingness to expand, make changes or innovations on issues such as agricultural products trade, services trade, investments, subsidies, sustainable development, anti-corruption, digital economy, SMEs, environment and climate change within a maximum of two years after the Agreement enters into force, has been compiled. In addition, regulations regarding rules of origin and technical standards will be revised in the coming period in parallel with the regulations between the EU and the UK. In other words, as it stands, it is a dynamic agreement whose process has not yet been completed.

So, given this general situation, what will be the impact of the new FTA on our foreign trade?

According to 2019 data, our country exports 10.8 billion dollars to the UK and imports 5.5 billion dollars; According to 2020 data, while exporting 11.6 billion dollars, it also imported 5.6 billion dollars of goods from the UK.

In the period 2002-2019, Turkey invested approximately 2.6 billion dollars in the UK, and the UK invested 11.1 billion dollars in Turkey.

• Graphic

When the sectoral distribution of exports to the UK is examined; It is seen that the electronics and machinery sector, which includes products such as television receiver devices, cables, radiators, stoves and dishwashing machines, is leading with a share of 25 percent. The electronics and machinery sector is followed by the "transportation equipment" sector, which includes air, land and sea transportation vehicles and parts, with a share of 21 percent. Transportation equipment is followed by minerals and metals with a share of 17 percent, ready-made clothing with a share of 15 percent, and textile with a share of 5 percent. Exports to the UK in the first 5 sectors listed constitute 83 percent of Turkey's total exports to the UK. In addition, exports to the UK in the electronics and machinery sector constitute 11 percent of Turkey's total exports worldwide in the sector. While the UK's share among Turkey's export partners in transportation equipment is 8.1 percent, it is 10.7 percent in ready-made clothing. Considering the UK's market shares in the sectors; It is seen that the UK's market share in Turkey's exports is above the average in the electronics and machinery, transportation equipment and ready-made clothing sectors.

It is envisaged that the agreement will provide zero customs duty for 95% of Turkey's exports to the UK and provide customs duty advantages for goods worth $10.7 billion. Our expectation is that the trade between the two countries will increase further after the FTA, and will be reflected in a more positive way, especially on Turkey's exports. With the inclusion of agricultural products in the future, trade between the two countries will further expand.

4. EVALUATION OF THE Türkiye-UK FTA IN TERMS OF CUSTOMS AND FOREIGN TRADE PRACTICES:

The signed agreement ensured the transition of trade between the two parties from the Customs Union structure to an FTA structure as smoothly as possible, thus at least the gains were preserved. The rules of origin for the EU products that the parties will use in their export products will be determined within the framework of the rules of origin protocol updated in the Trade and Cooperation Agreement signed between the EU and the UK, and cumulation of origin may be applied. Thus, the continuity of the existing production and supply chain was ensured. A system similar to the customs union regime will be applied in trade in agricultural products; The industry share in processed agricultural products will be calculated separately, and tariff-quotas will be specifically adapted to the UK leaving the EU. While determining the tariff quotas in question, our agricultural exports to the UK during the CU period were taken into consideration. However, it is difficult to say that there is more freedom in the field of agriculture.[1]

The provisions envisaged by the FTA in terms of basic elements are given below in general terms[2];

Customs Duties to be Applied to the UK: The agreement covers industrial products in chapters 25 to 97 and envisages the elimination of customs duties on these products originating from the parties in trade between the parties. (except ANNEX 2-A list)

In the new period, after the approval process is completed in the party countries, all applicable customs duties will be reflected in the 2021 Import Regime.

Situation in Trade in Agricultural Products: In the agreement, there are regulations (such as tariff quotas) to reduce or completely eliminate customs duties applied to agricultural products in chapters 1 to 24. For goods for which direct duties are not eliminated or preferential tariffs are not applied, the annex of the Agreement titled Tariff Lists should be examined.

In general, there is an FTA that positively affects 80% of our agricultural products and provides the opportunity to enter the UK market tax-free for our export products worth over 606 million dollars. However, negotiations will be held in the future to further develop trade in agricultural products.

• If quotas are in question, it is seen that they are scaled by 17% and reflected in the agreement.
• Since the UK made some changes in the customs tariff system, this has yielded positive results for our country's agricultural products. The composition table (measuring) has been abolished for processed agricultural products and entry prices are not applied. For this reason, advantages were obtained in 85 products such as biscuits, chocolate and confectionery.
• The exemptions that the EU has already granted us for food products, especially dried fruits and nuts, have been reflected in the FTA concluded between our country and the UK.
• There is no discount at this stage for olive oil, which is an important export product for Türkiye.
• Certificates used internationally in Health Certificates will be valid - if the conditions are met.
• Organizations approved by the EU in the field of agriculture are also approved by the UK.

Additional Customs Taxes: The UK still does not apply IGV in its trade. In accordance with the FTA, IGV will not be collected on products coming directly from the UK; But IGV will be collected on UK origin products imported via the EU.

Rules of Origin: Provisions and rules of origin regarding the goods originating from the party country that will benefit from the scope of the Agreement are included in the Protocol on Rules of Origin and Origin Procedures annexed to the Agreement. According to this; In trade between two countries, the declaration of origin made by the exporter on the relevant invoice or other commercial document will be used as the certificate of origin of the goods and will not require the approval of any authority (Protocol of Origin art. 19). The process is more flexible than many EU FTA processes as it does not require 'approved exporter' status. In the protocol; It is regulated that the declaration of origin must be detailed enough to allow the originating product to be identified and must be issued on or attached to an invoice or any other commercial document.

The rules of origin generally reflect the revised Pan-European Mediterranean Rules of Origin. Additionally, a provision allowing the use of PAAMK countries and EU input is also included. EU, Switzerland (including Liechtenstein), Norway, Iceland, Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, West Bank and Gaza Strip in preferential trade between the parties, provided that the processes are completed by signing the other agreements stipulated in the Rules of Origin and the Protocol on Origin Procedures. It contains provisions regarding the cumulation of origin of inputs originating from Syria, Tunisia, Albania, Bosnia and Herzegovina, Macedonia, Montenegro, Serbia, Kosovo, Faroe Islands, Moldova, Georgia and Ukraine in Turkey or the United Kingdom. However, in order for the cumulation provisions to be implemented, notifications regarding the completion of the necessary arrangements regarding the cumulation practice between the parties must be published by the party countries, which has not occurred at this stage.

Other Rules of Origin are generally as follows:

• Tolerance Rule: 15% will be applied instead of 10%.
• Instead of the Direct Transportation Rule, there is a no-substitution rule.
• In cases where the Value Added Rule is applied, the basic rate is determined as 50% (in PAAMK this rate is 40%)
• In origin acquisition; The issue of ineffective elements, territoriality principle and accounting separation has been regulated in parallel with PAAMK.

On the other hand, these rules will be revised between the UK and Turkey as soon as possible, in parallel with the EU-UK Agreement.

Relaxed Refund Prohibition (TEV Payments): As it is known, within the scope of the Inward Processing Regime, on products imported tax-free from third countries, used in manufacturing in Turkey and sent to the UK as final products, taxes that were not previously paid during export for products originating from third countries. , is payable as compensatory tax (TEV). In the FTA, this rule will only be applied for products within the 50th-63rd chapters (i.e. textile and apparel products) and TEV will not be charged for other products, which is a positive step.

Application in the Process Until the Agreement is Approved by the Parties: In the imports to be made within the scope of the FTA during the period between January 1, 2021 and the date on which the FTA between Turkey and the UK will be approved and published, if a valid declaration of origin is submitted, the goods will be charged at the legal tax rate applied to other countries in Turkey. taxes will be guaranteed. After the FTA is approved and the regulation of origin is published, the guarantees of those who comply with the regulation will be refunded, and the guarantees of those who do not comply will be forfeited.

Import and Customs Clearance Process in the UK: Customs procedures for goods imported into Great Britain will be implemented in 3 stages within a six-month period. Goods sent from Turkey and destined for the UK after entering free circulation in the EU will also be evaluated within this scope.

Starting from January 2021,

Importers of “standard goods” such as garments and electronics are expected to meet basic requirements, such as keeping records of imported products and issuing customs declarations within a maximum of six months.

Customs duties must be paid for the entire import, and it will be possible to postpone the payment until the customs declaration is completed.

Customs declarations will need to be completed when products such as alcohol, tobacco and toxic chemicals enter Great Britain.

In the import of live animals and high-risk plants and plant products, the importer will be expected to fulfill obligations such as preliminary notification and certification of health documents. There is also a prior notification requirement for high-risk animal products. Document checks will be carried out quickly, and physical inspections of high-risk products will be carried out at the destination of the product or at another location.

Starting from April 2021,

Preliminary notification and verification of health documents will be required for all animal products (such as meat, cat-dog food, honey, milk and egg products) and plants and herbal products.

Starting from July 2021,

In the circulation of all products, it will be essential to make all necessary declarations and pay taxes at the point of import. Safety and security declarations will be put into practice, (further) physical inspections and sampling will be carried out within the framework of sanitary and phytosanitary measures; Inspections on animals, plants and products produced from them will be carried out at the border control points of Great Britain.

Detailed information about customs controls can be found at https://www.gov.uk/government/news/government-accelerates-border-planning-for-the-end-of-the-transition-period

Started Process: "Started Process" will be applied to goods that were shipped from the UK to Turkey or were brought to Turkey and are in a warehouse, free zone or temporary storage place before January 1, 2021. These goods will be able to benefit from preferential tariff regulations, especially the Customs Union, valid before January 1, 2021.

Use of ATR Movement Certificates or Proof of Origin Certificates: In the new period, origin-based trade will be switched to and as of December 31, 2020, ATR movement certificate will not be used in trade between the two countries. However, the UK will continue to recognize ATR documents or proof of origin documents issued before January 1, 2021 for products that are on the road or in warehouses for 1 year, based on a four-month submission period. The FTA signed between Türkiye and the UK does not cover Northern Ireland. For this reason, if direct exports from our country to Northern Ireland want to benefit from the preferential tariff, a declaration of origin must be used as stipulated in the Turkey-England FTA.

Tax Rates that the UK will apply to products originating from Turkey and third countries: Origin control will be carried out in trade with the UK, and tax on goods originating from third countries (MFN) will be collected.

Regulations on Animal and Plant Health (SPS): Fruits and vegetables; live animals etc. For products, the UK will continue to request certificates similar to the Customs Union period under the name "export health certificate", under similar procedures. From now on, the changes to be made by the UK regarding SPS will be implemented in Great Britain; Since Northern Ireland will remain in the EU's SPS area, the EU's SPS rules will apply for exports to Northern Ireland.

Situation in Terms of Service Exports: The FTA between Turkey and the UK covers trade in goods and does not contain rules on trade in services. In this context, trade between the parties will continue through WTO rules. Additional regulations in this area are left to further negotiations. However, there will be no change in the current conditions regarding service provision after the transition period, for example, companies that will provide services on the other side will have to obtain authorization and licenses, etc. In such cases, it will continue to comply with the laws of the country where the service will be provided.

Compliance with the Transit Regime: The UK has announced that it will comply with the common transit regime.

Current Point Regarding Technical Regulations, CE Marking and UKCA, the UK's Conformity Assessment Mark: As of January 1, 2021, the UK will recognize the CE marking for one year. This means that the UK will accept products bearing the CE marking - including those subject to evaluation by a Notified Body recognized by the European Union (including those established in Turkey) - until January 1, 2022 (June 30, 2023 for Medical Devices). On the other hand, studies on the use of the UKCA mark instead of CE are ongoing and applications are being received. After the FTA approval process, efforts for mutual recognition will continue, taking into account the process between the EU and the UK.

Situation in Sectoral Technical Regulations (For example, EU Type Approval Certificate for the Automobile Sector): Since the UK announced that it will continue to recognize type approvals within the scope of UNECE and UNR 96 is a regulation within this scope, it is anticipated that no different situation will occur. It is considered that this will also be valid for UNR 96 as long as the UK continues to recognize EU Type Approvals by granting provisional UK type approval (two years).

TAREKS Inspections: Studies are being carried out for a similar TAREKS regulation provided for EU products.

REACH Procedure for Chemicals Continue: UK REACH, the UK's independent chemicals regulatory framework, will come into force from 1 January 2021. Anyone who manufactures, offers for sale or distributes chemicals in the UK will need to comply with UK REACH rules.

Status of Existing Health Certificates in the UK after 2020: Certificates issued for plant and animal products will continue to be recognized after the transition period. Detailed information is available at https://www.gov.uk/guidance/get-an-export-health-certificate.

Status of Measures Implemented by the EU on Steel Products: Information on which trade policy measures the UK will and will not apply in the EU https://www.gov.uk/guidance/trade-remedies-transition-policy#steel-safeguard-measures

Available at. In this context, the UK stated that it would continue the precaution for only 19 products out of 26 within the scope of the protection measure for steel products, and that the other 7 products had no production and therefore would not continue to apply the measure after December 31.

Trade with Northern Ireland: Northern Ireland will continue to harmonize some of the EU's Single Market-related legislation. However, N. Ireland will remain in the UK customs area and will be subject to the UK's FTAs. The FTA to be signed with the UK will also cover Northern Ireland.

However, in accordance with EU-UK regulations, products exported directly to Northern Ireland will be subject to a risk classification for export to the EU. Taxes applied by the EU and EU legislation will be applied to products that have a "risk" of being exported to the EU, and taxes applied by the UK and UK legislation will be applied to products that are not at risk. Therefore, the Customs Union conditions will apply to "risky" products, and the preferential tax rates of our FTA, which maintain the GB conditions, will apply to non-risky products. In practice, the applicable tax rates will be largely the same.

Transparency: In the FTA, there is the right to publish laws and legislative regulations and inform the relevant parties before trade-related practices.

Fast Performance of Customs Procedures: 48 days from the presentation of the goods to the customs administration, provided that certain conditions are met (provided that all information is provided in accordance with all requirements and procedures, and the goods will not be subject to physical control), not longer than the time required to ensure compliance with all applicable requirements and procedures. Ensuring rapid delivery of goods within hours (Article: 13.7); For this purpose, the customs declaration and other documents regarding the goods are notified and processed before arrival.

Micro Export: There is no change in practices in terms of micro export. There is no change in the application for sample shipments.

Facilitations: There is a commitment in the FTA to implement further simplified procedures for traders. Except for some goods, it is envisaged to deliver the goods at the place where they are presented to the customs administration without being temporarily shipped to a warehouse or similar facility, if possible, the possibility of customs clearance at the destination customs, for certain goods, customs clearance with a minimum of documents, and to deliver the goods without paying taxes.

Binding Information: It is possible for the customs authorities to provide binding information within 90 days, showing the treatment to be applied to the relevant goods and valid for 3 years.

Factors to be Considered in Application and Some Possible Risks:

• Since the practices have not yet been clearly established, our foreign traders should be cautious in obtaining documents against the inspections and inspections they may encounter in the future during customs transactions.
• Invoice declaration increases the risk of fraud and the possibility of origin deviation. Certificates of origin proving that they originate from Turkey can be obtained from the chambers of commerce with a letter of undertaking. It should be noted that the certificates of origin may be subject to subsequent control by the UK authorities in the future, so the certificates of origin must contain accurate information. In this context, the examinations carried out by Sworn Customs Consultants (YGM) have become even more important.
• In order for trade between the two countries to operate smoothly in accordance with the spirit of the FTA and for the further development of foreign trade, mutual cooperation mechanisms, as well as problem solving bodies, on the basis of chambers of commerce and customs administrations of the two countries, should be well established and operated.
• Facilitation within the scope of FTA should be implemented in real terms in our customs administrations. In FTA, it is possible to complete customs procedures in 4 hours. It is a matter of curiosity how it will work in practice.
• The demands and predictions of foreign trade actors and sectors should be taken into account in the FTA revision and protocols.
• Our high foreign exchange usage rates create risks in bilateral trade. This issue should not be ignored either.

CONCLUSION:

The Turkey-UK Free Trade Agreement has been drawn up as a continuity agreement with an approach based on the FTA between the UK and the EU. However, as the UK leaves the Customs Union with the EU, it also leaves the Pan European Mediterranean Origin Cumulation System (PAMMK) and the Western Balkan Origin Cumulation System (BBMSS), so there is no cross-cumulation at this stage. In this respect, it is seen that origin practices and origin acquisition rules will become clearer with the origin protocols to be executed between the EU and the UK in the near future. It is extremely important for this process to be followed carefully and reflected in the Turkey-UK FTA without wasting time, for the healthy flow of trade.

Today, origin cumulation systems established with numerous agreements have turned the rules of origin into complex, technical and difficult to understand rules that require serious expertise. Therefore, our foreign traders should be well informed in order to avoid any loss of rights due to origin practices.

The fact that the FTA will include service trade and investments in the future will further accelerate trade between the two countries and take strategic cooperation to higher levels. 80% of the UK economy consists of the services sector. While citizens from EU member countries were previously able to easily obtain a work permit and operate in BKK, now EU countries and Turkey are equal in this regard. For Türkiye, this situation may also create new opportunities in services trade.

By expanding the FTA in new areas such as the new digital economy, agricultural products and SMEs in the next two years, it will be possible to further expand trade between the two countries in digital manufacturing and agriculture. Possible investments in high-tech manufacturing industries such as aerospace, zero-emission vehicles, pharmaceutical industry, where the UK is strong, and cooperation in activities requiring digital technology such as public transportation, energy and security networks, and smart cities will also give Turkey the opportunity to make a leap in these areas.

The fact that the FTA is an agreement covering agricultural products will strengthen our country in the process of renewing the customs union between Turkey and the EU.

The FTA signed between Turkey and the UK is a result of the strategic value that the two countries give to each other and the deepening historical, political, commercial and strategic cooperation. It is useful to remind that if such an agreement cannot be made, Turkey will be among the countries that will suffer the most economic losses, and to emphasize that this is the most important agreement that Turkey has made after the Customs Union Agreement.

In our opinion, the UK-Türkiye Free Trade Agreement can be a reference agreement for Türkiye in the coming period. It would not be wrong to say that it was a successful process in this respect. In this respect, we once again congratulate those who contributed.

References

[1] https://www.tepav.org.tr/upload/mce/2021/degerlendirme_notu/turkiyeingiltere_birlesik_krallik_serbest_ticaret_anlasmasi_onemli_bir_adim_ama_yeterli_mi.pdf 

[2] https://ticaret.gov.tr/dis-iliskiler/sıkça sorulan sorular