/ world today news/ Britain and Turkey have signed duty-free trade deals that will boost their £18.6 billion trade relationship in 2019 and have pledged to work towards a more ambitious trade deal going forward. This was stated in the statement published on December 29 by the press service of the British government.
The two countries have reached a trade deal that is a major win for Britain’s automotive, manufacturing and steel industries, a press release said. The deal will secure existing preferential tariffs for the 7,600 UK firms that exported goods to Turkey in 2019, ensuring a continuous duty-free flow of goods and protecting vital UK-Turkey supply chains in the automotive and manufacturing sectors, Prime Minister Boris Johnson said.
Both sides pledged to work towards a more ambitious free trade agreement in the future, which would go beyond the existing deal and be tailored to the UK economy.
The signed agreement will provide preferential trade terms to British companies that have exported to Turkey more than £1 billion worth of machinery and £575 million worth of iron and steel.
„It is it also ensures that British businesses can continue to import at preferential prices. The agreement favors British textile importers, where the annual increase in expected duties would be around £102 million under World Trade Organization terms. The rates, applied to UK imports of washing machines and televisions, will remain at 0%, compared to 2% and 14% respectively under WTO terms. The vital supply chains between Great Britain and Turkey will also be protected for car manufacturers such as the factory of “Ford”, which employs 7,500 people in the UK. Auto parts are imported from Great Britain in Turkey for car assembly “Ford Transit”one-third of which are then exported tost Great Britain . In 2019, UK car exports to Turkey amounted to 174 million pounds”, – lists the UK Govt..
It also states that the current British government has, in less than two years, reached agreements with 62 countries amounting to £885 billion in Britain’s trade turnover.
“This is unprecedented as no other country has made so many trade deals at the same time. The Johnson government aims to conclude free trade agreements with countries that account for 80% of UK trade within three years,” the report said.
Notably, a trade deal between Britain and Turkey was reached days after London and Brussels managed to avoid a “hard” Brexit – a sharp break in relations between Britain and the European Union without a deal – and agree on how to trade and be cooperate after January 1, 2021.
Translation: V. Sergeev
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