No-deal Brexit could lose Turkey $3bn in trade
Turkey could lose trade with Britain worth up to US$3 billion following a no-deal Brexit.
Trade minister Ruhsar Pekcan said that such a result would leave many Turkish companies scrambling.
A no-deal Brexit would most likely result in Britain hiking import tariffs in sectors including automotives, steel and textiles.
“We expect that the most affected sectors will be automotive by a trade loss worth up to $1.2 billion, textile with $1.3 billion and electronic and white goods by $500 million,” Pekcan told a business forum in Istanbul.
In July, UK Secretary of State for International Trade said that the relationship between Turkey and the United Kingdom would remain strong, no matter what deal was struck. As one of the UK's most important trade partners, British companies have been encouraged to invest in Turkey.
Currently, just under half of UK exports head to Europe. Fox added that Brexit was an opportunity, not a threat to the UK's relationship with Turkey.
"The basis of our relations will never change," he said at the time. "We will always stand against the protectionist trade policies.”
However, despite the UK and Turkey wishing to sign a free trade deal, this wasn't an option due to Turkey's commitments with the EU, Pekcan said.
The minister said her department would be touring Turkey to let companies know about the potential impact of a no-deal.
“It seems that Brexit under a deal would be okay, but a no-deal Brexit will leave the Turkish businesses in a difficult position,” Pekcan said.
On Tuesday, British lawmakers took control of the parliamentary timetable to avoid a no-deal outcome. Now, the commons has blocked the UK from leaving the EU on October 31 without a plan.