Turkey: Free Trade Agreement

Viscount Trenchard Excerpts

Tuesday 27th April 2021 Grand Committee

[Viscount Trenchard (Con)]

My Lords, I thank the noble Lord, Lord Purvis of Tweed, for introducing this debate. Turkey is our 19th-biggest trading partner, with the total trade volume amounting to £18.7 billion in 2019. The Government stated that they intended

“to ensure that customs processes are as simple, clear, and predictable as possible”.

Does my noble friend the Minister agree that this is most encouraging? However, notwithstanding these additional customs checks, Turkish exports to the UK increased by nearly 13% in the first quarter. The benefits of trade derive from imports as well as exports, as my noble friend Lord Hannan of Kingsclere explained so well.

I congratulate the International Agreements Committee on its report, which drew the UK-Turkey agreement to the special attention of the House because it is politically important and because, although its overarching objective is to maintain provisions in the precursor EU-Turkey agreements, it differs from them in certain important respects. It introduces rules of origin requirements on industrial goods traded between the UK and Turkey. It also omits certain technical barriers to trade and aspects of competition policy. Some provisions of the agreement rely on the EU-UK trade and co-operation agreement and are subject to review after the TCA formally enters into force. The agreement does not cover services, which account for only 19% of the UK’s trade with Turkey, but it is good news that a review intended to enhance the agreement is set to start within two years. Does my noble friend the Minister agree that services trade and subsidy notifications similar to those in the Japan CEPA might be useful enhancements?

It is welcome that the Government have issued guidance to assist firms exporting to and importing from Turkey but the new rules of origin declarations, particularly against the background that Turkey is not allowing one single declaration for multiple shipments but is requiring separate declarations for each shipment, create difficulties. Credit is due to my right honourable friend the Secretary of State, my noble friend the Minister and their team for sorting out such a large number of continuity free trade agreements during December, including this complex deal with Turkey, which is, I understand, the fifth-biggest trade deal that we have negotiated since Brexit.

Turkey is also an important partner for geostrategic, security and other reasons beyond trade, as was pointed out by the noble Viscount, Lord Waverley. I look forward to hearing other noble Lords’ contributions and the Minister’s winding-up.