Tolga Inanc is an Executive Committee member of Conservative Friends of Turkey.
The British services industry, driving over 80 per cent of our economic output and employing 85 per cent of our workforce, is set for a potentially transformative boost.
Kemi Badenoch’s trip to Turkey last Friday, where she announced upcoming negotiations on a trade deal, marked what has the potential to be a strategic leap forward – especially if the Free Trade Agreement (FTA) can be expanded to include services, digital, and data.
In a gloomy economic climate, where stagnant growth and productivity with squeezed margins prevail, the timing of this is impeccable. An FTA focused on the services sector not only opens avenues for businesses, but positions the UK to gain a competitive edge in key global markets.
Turkey, with its anticipated 2.9 per cent economic growth in 2024, emerges as a crucial growth market. Despite recent macro-financial instability, it ranks as the fifth fastest-growing economy globally, following India, Indonesia, China, and Saudi Arabia, and above the G20 and OECD averages.
Existing bilateral trade between the UK and Turkey reached £26.2 billion in the 12 months to June 2023; In 2022, over 8,000 UK-registered businesses exported goods to the country. The Turkish community in Britain is vibrant and economically active, with many owning or managing small to medium-sized enterprises, and involved with cross-border movement of goods and services.
An FTA covering digital and data will have a tangible impact on how the diaspora does business with Turkey, while facilitating more inbound investment and services from Turkish companies. With more than 2,000 British companies operating in Turkey, an upgraded FTA focused on services, digital, and data can become a catalyst for productivity and innovation for businesses in both countries.
What sets this potential collaboration apart is the complementary nature of British and Turkish businesses. With Turkey’s fastest-growing sectors (construction, infrastructure, transport, and manufacturing) aligning with the expertise of UK companies (particularly in finance, planning, engineering, and accounting) the potential synergies are clear.
Post-earthquake reconstruction projects and Turkey’s burgeoning domestic market further amplify the demand for UK’s financial, professional, and digital services. This collaboration extends beyond borders, as Turkish companies, especially in construction, transport, and manufacturing, seek growth in strategic regions, particularly in Africa, where they are beating Chinese companies to major projects.
The Memorandum of Understanding signed during Badenoch’s visit, outlining UK Export Finance financing to develop 350km of infrastructure in Iraq, demonstrates the opportunities for joint Anglo-Turkish projects in key regions around the world. These collaborations not only create export opportunities for British businesses to provide their services, but can also enhance the UK’s economic ties and influence with strategic nations.
As systemic competitors increasingly demonstrate their economic weight around the world, championing and enabling economic partnerships in areas where we have a competitive edge, will enhance this country’s economic resilience.
For British firms eyeing key growth markets and mitigating global financial headwinds, Turkey’s manufacturing sector, competitive labour costs, and strategic geography at the crossroads between Europe, the Middle East, Asia, and North Africa offer an important opportunity. Other big players have already spotted it: Walmart, the world’s largest retailer, shifted parts of its supply chain from Chinese to Turkish firms after the Covid-19 pandemic.
That is why we should look at the recent Airbus-Turkish Airlines deal from a different angle. It not only boosts British exports and jobs for Rolls-Royce, but represents a strategic stake in Turkish aviation. That’s a smart long-term move, as Turkish Airlines plans to add over 50 new routes in the next decade, and its home base, the new Istanbul Airport, is already one of the world’s busiest transport hubs.
Badenoch should be congratulated, as should Jill Morris, our ambassador, and her team at the embassy in Ankara. An upgraded FTA with Turkey is not just a practical move that plays to our strengths, it’s a strategic imperative.
Such a deal could position the British services industry at the forefront of the global economy, solidifying our presence in key markets, and safeguard the UK’s economic future.
Tolga Inanc is an Executive Committee member of Conservative Friends of Turkey.
The British services industry, driving over 80 per cent of our economic output and employing 85 per cent of our workforce, is set for a potentially transformative boost.
Kemi Badenoch’s trip to Turkey last Friday, where she announced upcoming negotiations on a trade deal, marked what has the potential to be a strategic leap forward – especially if the Free Trade Agreement (FTA) can be expanded to include services, digital, and data.
In a gloomy economic climate, where stagnant growth and productivity with squeezed margins prevail, the timing of this is impeccable. An FTA focused on the services sector not only opens avenues for businesses, but positions the UK to gain a competitive edge in key global markets.
Turkey, with its anticipated 2.9 per cent economic growth in 2024, emerges as a crucial growth market. Despite recent macro-financial instability, it ranks as the fifth fastest-growing economy globally, following India, Indonesia, China, and Saudi Arabia, and above the G20 and OECD averages.
Existing bilateral trade between the UK and Turkey reached £26.2 billion in the 12 months to June 2023; In 2022, over 8,000 UK-registered businesses exported goods to the country. The Turkish community in Britain is vibrant and economically active, with many owning or managing small to medium-sized enterprises, and involved with cross-border movement of goods and services.
An FTA covering digital and data will have a tangible impact on how the diaspora does business with Turkey, while facilitating more inbound investment and services from Turkish companies. With more than 2,000 British companies operating in Turkey, an upgraded FTA focused on services, digital, and data can become a catalyst for productivity and innovation for businesses in both countries.
What sets this potential collaboration apart is the complementary nature of British and Turkish businesses. With Turkey’s fastest-growing sectors (construction, infrastructure, transport, and manufacturing) aligning with the expertise of UK companies (particularly in finance, planning, engineering, and accounting) the potential synergies are clear.
Post-earthquake reconstruction projects and Turkey’s burgeoning domestic market further amplify the demand for UK’s financial, professional, and digital services. This collaboration extends beyond borders, as Turkish companies, especially in construction, transport, and manufacturing, seek growth in strategic regions, particularly in Africa, where they are beating Chinese companies to major projects.
The Memorandum of Understanding signed during Badenoch’s visit, outlining UK Export Finance financing to develop 350km of infrastructure in Iraq, demonstrates the opportunities for joint Anglo-Turkish projects in key regions around the world. These collaborations not only create export opportunities for British businesses to provide their services, but can also enhance the UK’s economic ties and influence with strategic nations.
As systemic competitors increasingly demonstrate their economic weight around the world, championing and enabling economic partnerships in areas where we have a competitive edge, will enhance this country’s economic resilience.
For British firms eyeing key growth markets and mitigating global financial headwinds, Turkey’s manufacturing sector, competitive labour costs, and strategic geography at the crossroads between Europe, the Middle East, Asia, and North Africa offer an important opportunity. Other big players have already spotted it: Walmart, the world’s largest retailer, shifted parts of its supply chain from Chinese to Turkish firms after the Covid-19 pandemic.
That is why we should look at the recent Airbus-Turkish Airlines deal from a different angle. It not only boosts British exports and jobs for Rolls-Royce, but represents a strategic stake in Turkish aviation. That’s a smart long-term move, as Turkish Airlines plans to add over 50 new routes in the next decade, and its home base, the new Istanbul Airport, is already one of the world’s busiest transport hubs.
Badenoch should be congratulated, as should Jill Morris, our ambassador, and her team at the embassy in Ankara. An upgraded FTA with Turkey is not just a practical move that plays to our strengths, it’s a strategic imperative.
Such a deal could position the British services industry at the forefront of the global economy, solidifying our presence in key markets, and safeguard the UK’s economic future.