Published on December 29th, 2020 | by The GC Team0
Smile:-) – Tariff-free washing machines secured in UK/Turkey trade deal
The UK and Turkey have signed a free-trade agreement which will support a trading relationship worth £18.6 billion in 2019, and committed to working towards a more ambitious trade agreement in the future.
While Turkey’s current relationship with the EU made the timing of the deal tricky – the country is not an EU member but a customs union partnership meant the agreement could not be finalised until the UK left the bloc – the arrangement will secure existing preferential tariffs for the 7,600 UK businesses that exported goods to Turkey in 2019, ensuring the continued tariff-free flow of goods and protecting UK-Turkey supply chains in the automotive and manufacturing sectors.
It also ensures UK businesses can continue to import under preferential tariffs as opposed to WTO terms. Tariffs applied to UK imports of washing machines and televisions, for example, will remain at 0%, compared to up to 2% and 14% respectively under WTO terms.
The two countries have committed to working towards a more ambitious free-trade agreement, which the government said will go further than the existing deal and will be tailored to the UK economy.
International Trade Secretary Liz Truss said the arrangement “paves the way for a new, more ambitious deal with Turkey in the near future, and is part of our plan to put the UK at the centre of a network of modern agreements with dynamic economies. More trade and investment will drive economic growth across our United Kingdom and help us build back stronger from Covid.”