NEW RESEARCH: THE QUOTA ISSUE OF THE TURKISH ROAD TRANSPORT SECTOR IN THE EU (IKV BRIEF)
The quota issue with respect to the Turkish road transport sector between Turkey and the EU continues to remain a significant area of contestation and difficulty between the parties. Whilst international road transportation has been thoroughly and fully liberalised within the EU, transit permits are part of the daily reality for Turkish hauliers. With the expansion of the Turkish economy and a growing road transport sector, the quota issue is a serious hurdle to further growth and development.
The quota issue regarding Turkish hauliers was discussed for the first time at the European Court of Justice (ECJ) as a Turkish company had filed a complaint to one of the Member States in early 2017. The fact that this issue was brought directly to the highest court of the EU is of utmost importance as it has contributed in shedding the light to an often less known or focused problem within the realm of the EU. Moreover, 2017 is a critical year for both sides as the parties have agreed to launch the negotiations regarding the modernisation of the Customs Union, a move which would greatly benefit the Turkish road transport sector.
Although the quota issue continues to affect at a significant rate the arrival of Turkish exports to the EU, Turkey-EU trade has seen spectacular growth in the last ten years, notably with increased interest for the Turkish economy with more and more EU companies investing in Turkey. As such, the EU constitutes Turkey’s number one import and export partner while Turkey is currently ranking as the EU’s 5th top import and 4th in terms of export markets.
According to a report published by the European Commission in 2014 with respect to the Turkish road transport sector and its potential within the EU, it was indicated that the abolition of transit quotas would contribute positively both to Turkish exports within the EU as well as growing trade between the parties, with more investment and employment opportunities.
IKV Brief entitled “The Quota Issue of the Turkish Road Transport Sector in the EU” prepared by IKV Junior Researcher Deniz Servantie intends to provide a thorough assessment of the current state of the Turkish road transport sector and its relationship to the EU, the parameters of the quota issue and ways in which it may be solved through different hypothetical scenarios.
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IKV Brief: The Quota Issue of the Turkish Road Transport Sector in the EU
Author: Deniz Servantie
Publication date: June 2017
Number of pages: 24