The EU-Turkey Customs Union Agreement: A Comprehensive Overview
The EU-Turkey Customs Union Agreement is a bilateral agreement signed by the European Union and Turkey in 1995, which established a free trade area between the two countries. The agreement aimed to create a level playing field for trade by eliminating all tariffs on industrial products and facilitating trade in other goods and services.
The agreement also aimed to strengthen economic ties between the two countries by creating a framework for cooperation in areas such as competition policy, intellectual property rights, and technical regulations. Since its inception, the EU-Turkey Customs Union Agreement has been a crucial component of the EU`s relationship with Turkey, facilitating the flow of goods and services between the two countries and contributing to the growth of their economies.
The impact of the EU-Turkey Customs Union Agreement has been significant. According to the European Commission, the EU is Turkey`s largest trading partner, accounting for over 40% of its total trade. In 2019, the EU exported goods worth over €77 billion to Turkey, while Turkey exported goods worth over €62 billion to the EU.
Despite its success, the EU-Turkey Customs Union Agreement has faced several challenges over the years. One of the most significant issues has been Turkey`s accession to the EU. Since 1987, Turkey has been a candidate country for EU membership, but negotiations have moved slowly, with only one of the 35 chapters of the accession process being closed.
Another issue has been the lack of coverage for agriculture, services, and public procurement. These areas fall outside the scope of the existing agreement and have been a major bone of contention between the EU and Turkey. The EU wants Turkey to open up its market to EU businesses in these sectors, while Turkey has been reluctant to do so, citing concerns about the impact on its domestic industries.
The ongoing political tensions between the EU and Turkey have also put a strain on their economic relationship. The EU has been critical of Turkey`s human rights record and its military intervention in Syria, while Turkey has accused the EU of failing to support it in its fight against terrorism and its attempts to deal with the refugee crisis.
Despite these challenges, both the EU and Turkey have recognized the importance of the Customs Union Agreement and have taken steps to modernize it. In 2014, they launched a joint review to identify areas where the agreement could be updated and expanded. They have also discussed the possibility of including areas such as agriculture, services, and public procurement in the agreement.
In conclusion, the EU-Turkey Customs Union Agreement has been a vital component of the EU`s relationship with Turkey. It has facilitated the flow of goods and services between the two countries, contributing to their economic growth. However, it faces several challenges, including the lack of coverage for agriculture, services, and public procurement, and the ongoing political tensions between the EU and Turkey. Despite these challenges, both parties have recognized the importance of the agreement and have taken steps to modernize it. The future of the EU-Turkey Customs Union Agreement will depend on their ability to address these challenges and find a way to strengthen their economic ties.