Turkey and the United Kingdom will sign a free trade agreement on Dec. 29, Turkish President Recep Tayyip Erdogan confirmed Monday.

The Turkish leader said the agreement between the two NATO allies will be the most significant deal since Turkey signed a customs union trade accord with the European Union in 1996. “God willing, we are entering a new phase in which both Turkey and the UK will benefit,” Erdogan said following a cabinet meeting in Ankara. 

The United Kingdom is Turkey’s second biggest export market and the top market for Turkish white goods such as refrigerators and washing machines. Bilateral trade between the two countries stood at $16.3 billion last year, and was tipped overwhelmingly in Turkey’s favor. The Turkey-UK Business Council says it hoped to increase the volume of trade to $20 billion by 2023. 

The agreement replicates an existing one that allows for tariff-free trade on all non-agricultural products. British Trade Minister Liz Truss, however, said she hoped an even better deal would be struck soon. “The deal we expect to sign this week locks in tariff-free trading arrangements and will help support our trading relationship. We now look forward to working with Turkey toward an ambitious tailor-made UK-Turkey trade agreement in the near future,” Truss asserted.