Türkiye-UK Trade Deal: A New Chapter for Digital Trade and Services

As negotiations advance on a modernised Free Trade Agreement, what could it mean for software, technology and digital service companies?

The trade relationship between Türkiye and the United Kingdom is entering a new phase. While the existing Free Trade Agreement, signed in 2020, provided continuity for businesses trading after Brexit, its scope is largely focused on trade in goods. The two countries are now negotiating a more comprehensive and modern agreement that would expand the framework to areas including digital trade, services, investment and telecommunications.

Where do the negotiations stand?

The enhanced FTA negotiations began in 2025, with the first round held in Ankara between June and July. The fifth round took place in Ankara from 15 to 23 June 2026, covering areas including digital trade, telecommunications, investment, legal services and goods market access.

According to the UK Department for Business and Trade, five rounds have now been completed and 11 chapters have been closed. The sixth round is expected to take place in autumn 2026.

The discussions are also taking place within a broader strategic relationship. In April 2026, Türkiye and the UK signed a Strategic Partnership Framework that reaffirmed their intention to strengthen bilateral trade and investment and build on cooperation in science, technology and innovation.

A growing trade relationship

The scale of the relationship makes these negotiations particularly significant.

UK-Türkiye trade reached £28.4 billion in the four quarters to the end of 2025, representing a 4.3% increase compared with the previous year. In 2016, bilateral trade stood at £15.1 billion. The relationship has therefore grown substantially over the past decade.

Yet there is still considerable room for growth in services. In the latest UK trade rankings, Türkiye was the UK’s 24th-largest services trading partner, while accounting for a smaller share of UK services trade than of goods trade.

This is where the new negotiations become particularly relevant for technology companies.

Why should technology companies be watching?

For software, SaaS, fintech, digital platforms and other technology businesses, the significance of the agreement goes beyond traditional goods trade.

The inclusion of digital trade, telecommunications, cross-border services, investment and legal services in the negotiations could create a more predictable framework for companies operating across both markets.

Depending on the final agreement, progress in these areas could support:

• More predictable rules for cross-border digital services and data flows
• Easier access to international customers for Turkish technology companies
• Greater clarity around investment and establishing a presence in the UK
• New opportunities for professional and business services
• Stronger connections between the Turkish and UK technology ecosystems

These developments could be particularly relevant for companies looking to move beyond Türkiye and build an international customer base.

Preparation starts before the agreement is signed

The agreement is still under negotiation, so its final provisions and their practical impact cannot yet be known. Companies should therefore view the current period not as a guarantee of future benefits, but as an opportunity to prepare.

For Turkish technology companies, that preparation can start today: understanding the UK market, identifying potential customers and partners, building relationships within the ecosystem and developing the capabilities needed to operate internationally.

When the regulatory environment evolves, companies that already have market knowledge, networks and a clear international strategy will be better positioned to act.

For information on internationalisation, market entry and global collaboration opportunities, get in touch with YTU Yıldız Technopark International: [email protected]