It would give full access to one of the world's fastest-growing economies which is worth £800billion.
The Business Secretary said: "I'm delighted to be launching trade negotiations with Turkey an important economic and strategic partner.
"We already have a thriving trade relationship that will only get stronger with a new, modernised trade deal fit for the 21st century.
"An upgraded deal will give the UK's world-leading services sector a competitive edge in this growing market."
The announcement comes hot on the heels of the Business and Trade Secretary signing a bumper trade pact with Texas this week.
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