Türkiye-UK trade deal expected to enter force in 2026

ISTANBUL

A free trade agreement between Türkiye and the United Kingdom is expected to enter force in the second half of 2026, the chair of the British Chamber of Commerce in Türkiye told state-run Anadolu Agency.

“Everything is in the right direction, and the potential in Türkiye is very high,” Chris Gaunt said on Dec. 18, noting that the U.K. is attractive for exporters, particularly tech startups, and Türkiye is equally attractive for U.K. firms.

Gaunt said the process has entered its third stage.

The free trade agreement will also expand into new sectors, including fintech and construction technologies, he added.

“Turkish tech companies are going to the U.K. to set up their business, [where they can] access funding and capability, which are also very strong in the U.K.,” he said. “Everybody is focusing on AI, and the U.K. has very strong capability in AI, so it attracts Turkish companies.”

The U.K. is the seventh-largest investor in Türkiye, Gaunt said, highlighting the long-standing positive relationship between the two countries.

Trade between Türkiye and the U.K. totals 28 billion pounds ($37 billion), according to the U.K. government, making Türkiye the U.K.’s 17th-largest trading partner. This trade supports more than 57,000 jobs, according to the latest data.

Gaunt said Türkiye currently holds an advantage in the trade balance, estimating that the trade volume consists of 60 percent Turkish exports and 40 percent British exports.

He added that the agreement is expected to further boost trade and help balance overall trade volumes.

“Türkiye is a priority market for the U.K., and the agreement will bring more confidence to more investors once it’s signed,” he said. “The future looks positive.”