UK-Turkey Trade Continuity Agreement has been saved
UK-Turkey Trade Continuity Agreement
Trade and market access
Brexit pulse alerts: respond to the business impacts of Brexit
29 December, 2020
Top Brexit impacts
The agreement provides confidence to businesses that trade between the UK and Turkey will continue to benefit from preferential terms comparable to existing arrangements. The two countries conducted over £18 billion of bilateral trade in 2019.
The UK government has said the new agreement ensures: “preferential trading terms for UK businesses that exported more than £1 [billion] worth of machinery, and iron and steel exports worth £575 million, to Turkey in 2019.
“It also ensures UK businesses can continue to import under preferential tariffs, compared with no agreement. This supports UK importers of textiles, where the annual increase in estimated duties would have been around £102m under WTO terms. Tariffs applied to UK imports of washing machines and televisions will remain at 0%, compared to up to 2% and 14% respectively under WTO terms.”
Alongside the continuity agreement, both countries have committed to negotiating a more ambitious deal in the future which seeks to accommodate the specific needs of both the Turkish and UK economies.
Actions for business
Businesses trading within the UK-Turkey corridor will be able to plan for the future with greater certainty. The new agreement will be provisionally applied to come into effect on 1 January 2021.
To discuss specific support with your Brexit preparations based on this latest development contact: Deloitte Brexit Insights