Turkey: Free Trade Agreement

Lord Moynihan Excerpts

Tuesday 27th April 2021 Grand Committee

[Lord Moynihan (Con) [V]]

My Lords, I thank the noble Lord, Lord Purvis, for securing this debate. I echo those who have welcomed this first-stage agreement, set in the context of the wider political ramifications. Turkey is an important and valued trading partner for this country, a member of NATO and politically and strategically critical to our interests. Her territories span the great divides of the world: to the north, the states once tied to the former Soviet Union; to the east, the volatile areas of the Middle East; to the south, the occasionally turbulent north African countries; and to the west, Europe. Our bilateral relationship is long-standing and important in this context, for, as the noble Viscount, Lord Waverley, has said, it is in both our and Turkey’s national interests to continue to encourage stability and prosperity through trade.

One reason this initial agreement is so important is that it can bind our aspirations closer to Turkey, with immeasurable consequences for Cyprus, NATO, Europe and peace in the eastern Mediterranean. So, the context of this welcome agreement is important as we debate its merits and wider ramifications, fully recognising, as others have, the importance of our negotiating ability to fill the gaps identified today in the follow-on agreement. Freed from EU constraints, we have a remarkable opportunity to improve this critical partnership. As suggested by Ayhan Zeytinoğlu, the chair of the Economic Development Foundation, it is possible that Ankara and London could develop a special relationship in the post-Brexit period, using the free trade agreement and the more comprehensive trade and economic ties built on this deal as its backbone.

While we recognise the potential for enhanced political relationships, this FTA should be praised for entrenching co-operation in key areas of mutual interest, including the automotive sector, engineering and white goods, while recognising that there is much more to be done. Deeper economic co-operation can now be pursued, and this should not be regarded lightly in the negotiations to come, for the UK ranks second among Turkey’s export partners. However, this FTA is unfinished business. It signals the start of a new relationship and a new negotiation. Opportunities now exist for working closely together, blending, for example, the strengths of the UK’s expertise in the fields of investment and finance and Turkey’s agricultural, manufacturing and textile industries. There will be opportunities for mutual co-operation, which should be grasped and strongly supported by the Government.

As the noble Lord, Lord Foster, alluded to, it was no passing platitude for President Erdoğan to welcome this deal as the most important trade deal since its 1995 customs union with the EU. The opportunity now exists to pursue closer economic and political ties while being frank and open about our differences. Turkey has gained an important and influential bilateral friend where, as fellow members of NATO, we can work with greater freedom and energy to build stronger Mediterranean, African, Caucasian and Middle Eastern policies than ever before. I congratulate the Government on this initial step.