Economic Development Foundation Chairman Ayhan Zeytinoğlu indicated the important points which need to be highlighted with respect for the business world’s expectations at the negotiations regarding the modernisation of the Customs Union are scheduled to be launched in 2017. Whilst the decision to sign the Customs Union had led to the strengthening of the competitive power of Turkish industry and the opening of Turkey’s economy to the global markets, Zeytinoğlu reminded that at that time, it was envisaged that Turkey’s EU membership would be completed in 5 years. In that respect, Zeytinoğlu added the following: “After 20 years since the Customs Union was signed, EU membership has not been materialised. This has also led to the insufficiency in the procedures to solve pending issues and to take decisions together”.

Zeytinoğlu pursued his words with the following:

“We are awaiting the beginning of the process of modernisation and enhancement of the Customs Union in early 2017. Within that timeframe, it is envisaged to work on a more comprehensive and new generation trade agreement which would also encompass the services and agriculture sectors along with public procurements. We do believe that this process would have positive effects upon the Turkish economy and lead to a substantial increase in our GDP. Furthermore, the enhancement of the Customs Union as to include the sectors sector and agricultural products would not only increase Turkey’s total trade, and bring about a more efficient and constructive agricultural transformation along with increase the competitiveness of the services sector but also have significant benefits for the Turkish economy as a whole”.

Zeytinoğlu: “The Shortcomings of the Customs Union Should Be Tackled”

IKV Chairman Zeytinoğlu stressed the need for Turkey to be a party to the decision-making processes and the establishment of mechanisms to solve pending disagreements. He also pinpointed the remaining issues with respect to the functioning of the Customs Union as follows:

“In this process where Turkey’s access to the EU’s single market would be deepened, we will become a nation which would implement many EU policies with respect to its single trade policy, free movement rules, production standards and the Common Agricultural Policy (CAP). We could define this situation as “everything outside membership”. It is unacceptable that whilst we are being directly affected by EU policies, we are not party to the decision-making processes of these very same policies. Indeed, the least would be for Turkey to be included in the committees where the processes of determining the common trade policies are discussed”.

Moreover, Zeytinoğlu also referred to the issues which impede the effective functioning of the Customs Union and indicated that it would be an important benefit for all for those issues to be solved in the upcoming period. Zeytinoğlu especially stressed issues pertaining to the transport quotas, the inclusion of Turkey within the framework of the EU’s FTA (free trade agreements), and the latest development at the customs:

“The enhancement of the Customs Union to new areas bears significant potential with respect to the further development of Turkey-EU trade and investment relations. In addition, there are currently areas of the Customs Union which are not operating effectively. It is of utmost importance for us to tackle these issues as to create a Customs Union which is functional and with a strong growth potential. In its current state, the Customs Union has issues as regards the transportation of industrial products made in Turkey to EU countries through transport quotas, extra fees which are required at highway passages and a slow pace for the Customs Union processes. Moreover, the fact that the visas have still not been lifted for Turkish citizens constitutes in itself another significant issue. Indeed, these obligations are an impediment for the Turkish business community which often visits the EU for fairs and business meetings. We do hope that issues such as the fact that Turkey is not present simultaneously in the context of free trade agreements signed by the EU or at negotiations in that respect would be solved within the framework of the negotiations on the modernisation of the Customs Union”.