Türkiye-UK economic ties to boost collaboration in '21st-century' sectors

An expected new free trade deal between Türkiye and Britain will pave the wave for enhanced ties in new "21st-century" industries from fintech to green energy, digital economy, and advanced manufacturing, UK Minister for Exports Malcolm Offord told Anadolu in an exclusive interview.

Having agreed to hold talks on a new and modernized agreement, the two nations seek to replace and expand the chiefly goods-focused existing one, which was rolled over from when the UK left the EU.

Offord said the topic came up in conversations with businesses during his visit to Türkiye last week as "obviously there is a great deal interest in this happening".

"The previous deal was largely focused on goods. Now we got an opportunity to go into services, especially telecoms, financial services, digital, and so there is a real expectation that we can move this along," he said.

Trade between the two countries increased 30 percent last year, Offord noted, adding that Türkiye was currently the UK's 18th biggest trading partner and was "moving up the league table".

Their current trade volume is £23.5bn ($30.2 billion) and Turkish exports to the UK account for two-thirds of this, while British exports do the remaining part.

"So, it is a very strong position and it seems to me that there is a lot of momentum and a lot of goodwill. These negotiations will start next year, but I think it is a very good time for both of us," Offord said.

While expecting goods will always be part of trade relations, he said: "But, I think the growth is going to be in services and in the new, what we would call '21st-century' industries like digital, Fintech, green energy, advanced manufacturing and telecoms."

The UK Export Finance (UKEF), the British government's export credit agency, announced last week that it has provided €781mn for a 286-kilometer (177-mile) electric railway project connecting Türkiye's southern provinces of Mersin, Adana, Osmaniye and Gaziantep.

This was the third major deal in the last two years that UKEF announced, Offord said. "We have done a lot of business in Türkiye".

Next natural step: 'Starting to invest more'

Last week, Offord attended the International Defense Industry Fair (IDEF) in Istanbul, one of the biggest defence industry trade exhibitions in the world.

There, he spoke to some of the many British companies and small- and medium-sized enterprises working with Turkish manufacturers.​​​​​​​

"They are very connected. I think if we are collaborating in our manufacturing lines, the natural next step is we start investing more. I would expect to see more UK investment in Türkiye. And I had a very interesting seminar with a number of Turkish investors who want to invest in the UK offshore wind. So, there seems to me a lot of commonality," he explained.

​​​​​​​Pointing to Turkish contractor companies' expansion across the globe, Offord said UKEF business could take the contracts they make even further.

"I can see quite a bright future for us working together outside of Türkiye," he noted.

Türkiye ranks second place with over 40 among the world's top 250 contractor companies.