The UK and Türkiye Forge a New Era in Trade Relations
The United Kingdom and Türkiye are embarking on an ambitious journey to update their existing free trade agreement (FTA), a move that British Consul General in Istanbul, Kenan Poleo, believes will serve as “a great example” for modern trade deals worldwide. The first round of negotiations on this updated agreement has already concluded positively, covering crucial areas such as goods trade and sustainability.
This initiative signifies a strategic effort by both nations to deepen their economic ties and adapt their trade relationship to the evolving global landscape. The planned update reflects a shared commitment to fostering more efficient, transparent, and mutually beneficial trade practices. This forward-thinking approach aims to not only enhance bilateral commerce but also to set a precedent for how two important partners can collaborate to redefine international trade in the 21st century.
Expanding Cooperation Beyond Traditional Goods
The most exciting aspect of this new free trade agreement lies in its potential to expand cooperation far beyond traditional goods trade. The next round of negotiations, expected later this year, will focus specifically on developing a comprehensive roadmap for expanded collaboration in services and innovation-driven sectors. This emphasis on modern economic drivers distinguishes the updated FTA, positioning it as a blueprint for future trade agreements.
Kenan Poleo highlighted that this is an opportunity for the UK and Türkiye to demonstrate what a truly modern free trade agreement looks like between significant global partners. The shift towards services and innovation reflects the evolving nature of global commerce, where intangible assets and technological advancements play an increasingly vital role. By prioritising these high-growth sectors, the updated FTA aims to unlock new avenues for economic development and foster greater competitiveness for both economies on the international stage.
Surging Trade Volume and Untapped Potential
Trade between the United Kingdom and Türkiye has already reached impressive levels, currently exceeding £27 billion (approximately $36 billion). This substantial volume underscores Türkiye’s position as one of the UK’s largest trading partners, a relationship that has grown significantly in recent years. Kenan Poleo described the trade relations between the two countries as “huge,” emphasising the existing depth of their economic ties. Despite this robust foundation, Poleo believes that “the sky’s the limit” for future growth, indicating vast untapped potential for further expansion.
He identified numerous positive opportunities across various sectors, citing clean energy, advanced manufacturing, and mobility as key areas ripe for enhanced collaboration. This optimistic outlook is driven by the complementary strengths of both economies and their shared ambition to diversify economic partnerships in a rapidly changing global environment. The current trade figures serve as a strong base from which the updated FTA aims to propel even greater economic integration and prosperity.
Eurofighter Deal: A Strategic Defence and Economic Milestone
A recent and significant milestone in bilateral cooperation between the UK and Türkiye was the signing of a memorandum of understanding during last month’s International Defence Industry Fair (IDEF) in Istanbul. This pivotal deal paves the way for Türkiye to become a Eurofighter Typhoon operator, a move that Kenan Poleo described as a “great example” of UK-Türkiye collaboration as “strategic and defence partners.” The agreement extends beyond defence, offering substantial economic gains for both countries.
Poleo revealed that “a third of those aircraft are going to be built within the UK,” ensuring significant economic activity and job creation in Britain. This collaboration provides “huge opportunities for both countries in terms of defence and security, but also economic growth.” The Eurofighter, a multirole aircraft equipped with next-generation radar and enhanced air-to-air and air-to-ground combat capabilities, represents a high-value strategic asset. This deal underscores the multifaceted nature of the UK-Türkiye relationship, where defence cooperation translates into tangible economic benefits.
Collaboration in Clean Energy: Offshore Wind and Nuclear Power
UK-Türkiye is exploring opportunities for collaboration in the clean energy sector, particularly in offshore wind and next-generation nuclear power. The UK’s leadership in offshore wind and advanced innovation capabilities, such as the Offshore Renewable Energy Catapult in northern England, can help Turkish companies explore global and domestic renewables opportunities.
The potential for world-beating results in offshore wind and nuclear power development is also being explored. The UK is well-positioned to support Türkiye’s ambitions, such as installing 5 gigawatts of offshore wind capacity by 2035 and advancing its first nuclear power plant in Akkuyu. The UK’s global leadership and decades of expertise in both sectors make it well-positioned to support these ambitions.
The UK’s Post-Brexit Strategy and Türkiye’s Diversification Goals
The planned update to the free trade agreement aligns perfectly with the broader strategic objectives of both the UK and Türkiye. Post-Brexit, the UK is actively seeking to expand its global trade network, forging new and deeper economic partnerships around the world. Türkiye, on the other hand, aims to diversify its economic partnerships amidst shifting regional dynamics and global supply chain realignments. This mutual desire for expanded and diversified trade creates a strong impetus for the updated FTA.
The agreement serves as a vehicle for the UK to strengthen its economic ties in a key region, while enabling Türkiye to enhance its resilience and reduce reliance on traditional economic blocs. The focus on high-growth sectors like clean energy, advanced manufacturing, and services reflects a forward-looking approach that seeks to build robust and future-proof economic relationships, ensuring both nations are well-positioned in the evolving global economy.
Consul General Kenan Poleo’s Farewell and Legacy
As Kenan Poleo prepares to conclude his tenure as British Consul General in Istanbul in early 2026, he reflects on his time in Türkiye as both a personal and professional high point. Born in South London to a Turkish Cypriot family, Poleo described his post as “always my dream job,” expressing both the joy of serving and the sadness of its impending end. His tenure has been marked by significant achievements in strengthening the UK-Türkiye business relationship, fostering partnerships that span diverse sectors from health tech to aviation.
During his farewell speech, Poleo briefly switched to Turkish, expressing satisfaction at improving his language skills and humorously adding, “Ailemle dedikodulari anlayabiliyorum” (I can now understand the gossip in my family). Calling Istanbul one of Europe’s greatest cities, he fondly recalled visiting as a student and dreaming of working at the British Consulate. His legacy includes not only the deepening trade ties but also a personal connection that has undoubtedly contributed to the collaborative spirit between the two nations.
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