While the Brexit process, which resulted in the United Kingdom’s departure from the European Union (EU), did not reduce trade between Turkiye and this country, the total trade volume exceeded $17 billion 670 million as of the end of last year.
It has been 3 years since the UK officially left the EU.
The people in this country went to the Brexit referendum on June 23, 2016, with politicians promising that “there are tremendous opportunities outside the EU” and that “leaving the Union would make England richer and freer.” In the European Union (EU) referendum held in the region consisting of England, Wales, Northern Ireland and Scotland, the Brexit decision was taken with 52% of votes against 48%.
Brexit was postponed many times due to problems in negotiations between the UK and the EU after the referendum. At the end of a painful process for both parties, the United Kingdom officially left the EU on January 1, 2021, after saying goodbye to it on January 31, 2020, after an 11-month transition period.
After the separation, a new era began between the United Kingdom and many countries. Turkiye also carried out intensive negotiations with this country during the transition period to prevent any damage to bilateral business and trade. As a result of negotiations between the two countries, the Turkiye -United Kingdom Free Trade Agreement (FTA) was signed on 29 December 2020 and the agreement entered into force on 20 April 2021.
Turkiye’s monitoring of the process and its constant contact with the United Kingdom prevented trade between the two countries from being hit.
Trade between the two countries did not decrease, as a matter of fact it increased
According to Turkish Statistical Institute data, a trade volume of $16 billion 289 million 882 thousand was recorded between Turkiye and the United Kingdom in 2020, when Brexit actually took place but was described as a transition period. This amount increased to $18 billion 675 million 840 thousand in 2021. The total trade volume, which lost some momentum in the following years when Covid-19 measures, the Russia-Ukraine War and other geopolitical risks were reflected in world trade, reached $17 billion 979 million 255 thousand in 2022 and $17 billion 670 million 420 thousand in 2023.
Turkiye has an export surplus in trade between the two countries. Exports of $10 billion 887 million 811 thousand were made from Turkiye to the United Kingdom in 2020. This amount was recorded as $13 billion 298 million 674 thousand in 2021, $12 billion 534 million 289 thousand in 2022, and $11 billion 712 million in 2023.
During the said period, imports from the United Kingdom amounted to an average of $5.5 billion. It was observed that imports, which were $5 billion 402 million 72 thousand in 2020, were $5 billion 377 million 167 thousand in 2021, $5 billion 444 million 966 thousand in 2022 and $5 billion 959 million 320 thousand in 2023.
Automotive industry exported the most
When we look at the distribution of exports from Turkiye by sectors last year, it was determined that the “automotive industry” made the most exports with $3 billion 295 million 479 thousand. This sector was followed by “electrical and electronics” with $1 billion 658 million 661 thousand, and “ready-made clothing and apparel” with $1 billion 537 million 722 thousand. The sectors that increased their exports the most proportionally during this period were jewelery with 84.2%, ornamental plants and products with 46.3%, and grains, pulses, oilseeds and products with 44.2%.
Source: Trthaber / Prepared by Irem Yildiz