European Union–Turkey Customs Union
Commemorative Turkish coin for EU-Turkey customs union
In 1996 a free trade area was established between Turkey
and the European Union for products covered by the European Coal and Steel Community
. Decision 1/98 of the Association Council covers trade in agricultural products.
According to a 2020 study, the agreement boosted trade between the EU and Turkey. In manufacturing, there was a 55–65 per cent increase in EU‐Turkey trade compared with the Ankara Agreement.
Results for Turkey
The customs union increased both imports
as well as its GDP
Turkey's membership of the customs union is recognised as having played a significant part in its economy's transition from agrarian to industrial.
is in a customs union with the EU, it has to adjust its tariffs
to match those of the EU. However, the free trade agreements
(FTAs) signed by the EU do not extend to Turkey, so the EU's FTA partners can export to Turkey tariff-free, while maintaining tariffs on Turkish goods, unless they also conclude a separate FTA agreement with Turkey. During the negotiation of the Transatlantic Trade and Investment Partnership
(TTIP), Turkey raised the prospect of leaving the customs union over the economic contraction it would suffer as American goods would enter Turkey
tariff-free and Turkish goods would continue to face American tariffs. The EU and Turkey are in negotiations for amending the customs union agreement to add Turkey to the EU's present and future FTAs.
EU member state candidacy
Turkey has been an associate member of the European Community
(EC) since 1964, following the signing in 1963 of the Ankara Agreement
(EEC-Turkey Association Agreement (1963)) with the EEC. Turkey applied for full membership on 14 April 1987.
The decision to consider Turkey's application was deferred until 1993, because the European Community was in the process of becoming the even (politically and economically) tighter European Union
. The fall of the Soviet Union
and German reunification
delayed the decision on Turkish membership even more. During those years the European Community had also become reluctant to consider Turkey's application.
At the Helsinki
summit in December 1999 Turkey was given the status of a candidate country. At the end of 2004, the European Commission
has issued a report with positive recommendations to the European Council
, indicating the degree of compliance by Turkey of the Copenhagen
political criteria. On this basis, the European Council
decided to start accession negotiations with Turkey on 3 October 2005. Since then, no significant progress has been made towards membership nor is there evidence of political will to do so.
In December 2016, the European Commission
released an assessment proposing to update and modernize the agreement which includes services and public procurement.
The report concludes with two options; Enhanced Commercial Framework (ECF) or Deep and Comprehensive Free Trade Agreement
As of 2020 March, the Council didn't adapt the proposal yet. Since 2015, Turkish government has made several meetings to assess updating the agreement.
Euro-Mediterranean free trade area
- ^ "Turkey - Trade - European Commission". ec.europa.eu.
- ^ Larch, Mario; Schmeißer, Aiko F.; Wanner, Joschka (2020). "A Tale of (almost) 1001 Coefficients: The Deep and Heterogeneous Effects of the EU-Turkey Customs Union". JCMS: Journal of Common Market Studies. 59 (2): 242–260. doi:10.1111/jcms.13058. ISSN 1468-5965.
- ^ https://ecomod.net/sites/default/files/document-conference/ecomod2003/Neyapti.pdf
- ^ Aytuğ, Hüseyin; Kütük, Merve Mavuş; Oduncu, Arif; Togan, Sübidey (2017). "Twenty Years of the EU-Turkey Customs Union: A Synthetic Control Method Analysis" (PDF). JCMS: Journal of Common Market Studies. 55 (3): 419–431. doi:10.1111/jcms.12490. hdl:11693/37085. S2CID 53560157.
- ^ "The EU and Turkey need each other. Could upgrading the customs union be the key?". 29 August 2017. Retrieved 18 January 2018.
- ^ "The EU-Turkey Customs Union in the light of TTIP and beyond the economic relations". 15 May 2014.
- ^ "Talks between Turkey, EU to update Customs Union deal to start in 2017". 30 August 2016.
- ^ "Turkey avoids economic pain with EU trade agreement". 6 May 2015.
- ^ "Turkey - Trade - European Commission". ec.europa.eu. Retrieved 13 March 2020.
- ^ "Study of the EU-Turkey" (PDF). European Commission. Retrieved 13 March 2020.
- ^ "T.C. Ticaret Bakanlığı". Ministry of Trade (Turkey) (in Turkish). Retrieved 13 March 2020.
Last edited on 30 June 2021, at 02:45
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