Turkey and the United Kingdom have had a long-standing economic relationship. As both countries prepare for a post-Brexit world, discussions surrounding a potential free trade agreement (FTA) have gained momentum. In this article, we will explore the benefits and challenges of a free trade agreement between Turkey and the UK.
Turkey’s Economy
Turkey is an emerging economy that has undergone significant transformations over recent years. With a population of over 83 million, Turkey is one of the largest economies in the region. Turkey’s economic growth has been extensive since the 2000s, making it attractive to foreign investors. The country`s economy has been driven by its manufacturing sector, which is highly export-oriented.
UK`s Economy
The United Kingdom is a developed economy with a strong industrial base and a robust financial sector. The UK is the sixth-largest economy globally and has a population of around 67 million. The country`s economy is primarily driven by its services sector, which contributes around 80% of its GDP.
Benefits of a Free Trade Agreement
The primary benefit of a free trade agreement is the elimination of tariffs on goods traded between the two countries. This would lead to increased trade between Turkey and the UK, benefiting both economies. Additionally, a free trade agreement would reduce the regulatory barriers that can hinder trade in certain sectors, including services.
As Turkey and the United Kingdom have complementary economies, there is potential for increased cooperation in various sectors. For example, the UK`s expertise in services, such as finance and technology, could complement Turkey`s manufacturing industry. The agreement would also provide more opportunities for businesses and investors in both countries, creating jobs and driving economic growth.
Challenges of a Free Trade Agreement
One of the significant challenges for the two countries to reach a free trade agreement is the political uncertainty. The UK`s exit from the European Union has raised questions about its future economic relationships with other countries. Turkey, on the other hand, has experienced political instability in recent years, and its relationship with the EU has been strained.
Another challenge is the differences in regulatory environments between the two countries. For example, Turkey`s adherence to EU regulations might not be compatible with the UK`s standards, hindering trade in certain areas.
Conclusion
A free trade agreement between Turkey and the United Kingdom could boost economic growth and increase opportunities for businesses in both countries. However, there are also significant challenges that need to be addressed. The two countries must work together to resolve political uncertainty and regulatory differences to develop a mutually beneficial agreement. As Turkey and the UK continue to discuss and negotiate, the potential for a successful free trade agreement remains optimistic.