The document was signed by the two countries' trade ministers.
Turkish Minister of Trade Ruhsar Pekcan announced at the ceremony that the agreement, coming into force on 1 January, would cover all kinds of industrial and agricultural products.
On Friday, the Turkish foreign ministry said that Turkey views the newly struck Brexit deal as a positive development, believing it will give new impetus to its relations with both the EU and the UK.
This was the latest free trade deal signed by the UK.
Brussels and London reached a trade deal on Thursday. Fishing rights had been among the thorniest issues in months-long talks. UK Prime Minister Boris Johnson said the deal would raise the country’s share of fishing quotas from around half to two-thirds in five and a half years.
The agreement still requires the approval of the EU countries and the ratification of the European Parliament, as well as the UK Parliament. The European Parliament plans to approve the agreement with Britain at a plenary session next March. Before official approval, the agreement is expected to operate in a temporary application mode, the corresponding decision was approved on Monday by the permanent representatives of the EU countries.