The United Kingdom and Turkey have announced plans to enter negotiations for a new Free Trade Agreement (FTA), extending beyond goods to encompass the services sector. Davies Turner, a prominent UK-based logistics company specializing in overland trailer services between Turkey and the UK, welcomes this development with enthusiasm.
The existing tariff-free agreement, established in 2020, has significantly bolstered trade ties between the UK and Turkey. Although the initial agreement primarily covered goods, its rollover post-Brexit provided a crucial framework. Alan Williams, a director at Davies Turner, underscores the importance of such arrangements in fostering robust trading relationships. He highlights how they benefit UK importers, exporters, as well as the freight forwarding and logistics firms orchestrating their supply chains.
Williams emphasizes the potential of a broader FTA to catalyze trade further, presenting opportunities for UK businesses to capitalize on. Davies Turner, as a key player facilitating trade between the UK and Turkey, operates extensive overland and multimodal trailer services on a daily basis. Their partnership with Istanbul-based Ekol Logistics, one of Turkey’s premier freight and warehousing operators, underscores their commitment to seamless trade facilitation.
Reflecting on recent trends, Williams notes the increasing inclination towards Turkey as an alternative supply source, particularly amidst challenges in long-distance supply chains. He attributes this shift partly to the tariff-free agreement and anticipates that an expanded FTA, covering services and digital sectors, would unlock even more trade avenues.
Williams emphasizes the broader implications of such agreements, highlighting their role in fostering bilateral relations and creating a conducive environment for trade and investment. For companies like Davies Turner, which provide critical freight and logistics services, a frictionless trade environment is paramount.
Davies Turner sees the proposed negotiations as a positive step towards enhancing trade relations between the UK and Turkey. The potential inclusion of services and digital sectors in the FTA holds promise for unlocking new avenues of growth and cooperation.
