In the wake of the vote held in the European Parliament, the UK's Withdrawal Agreement has been approved with 621 votes in favour, 49 against and 13 abstentions. The political group representatives taking the floor at the hearing stated that it was not the end, and the ties uniting the citizens of Europe were still strong. Moreover, it was underlined that it was necessary to take lessons from the Brexit and shape the future of the EU accordingly.

For the next step, Council of the EU is expected to approve the UK's Withdrawal Agreement by qualified majority. The first-ever withdrawal from EU membership will take place during the term Presidency of Croatia, the youngest EU Member State. As of 31 January 2020, the EU will become a Union of 27 Member States.

IKV Chairman Zeytinoğlu touched upon this critical process and referred to its significance for Turkey:

“As of January 31, we will encounter a Union of 27 members. The EP approved the UK Withdrawal Agreement in a very emotional session. A transition period has been envisaged until the end of 2020. During this period, an agreement would be negotiated to determine the conditions of the new relationship between the UK and the EU. In other words, this new agreement needs to be agreed within 11 months. The transition period could be extended for 1 year or 2 years once. The EU side states that an extension was necessary; however, UK Prime Minister Boris Johnson claims the opposite. We will most probably confront tough negotiations, once again. The UK will continue implementing EU laws until the end of transition period. The new agreement, which is planned to be signed with the UK, needs to be approved by the EP. Therefore, we have a difficult and ambiguous period ahead of us.”

IKV Chairman Zeytinoğlu reminded that the new agreement, which is planned to be signed by the UK and the EU after Brexit, is important for Turkey, too:

“The UK is our second largest trading partner within the EU and an important investor in Turkey. According to recent data, the UK ranks the 6^th  with a share of 6.2 percent. The prospective agreement between Turkey and the UK which is going to replace the Customs Union is important for Turkey. We both have to maintain the current level in our bilateral relations and enlarge the scope of the agreement by including new sectors. Until now, our citizens have used the right of residence granted by the Ankara Agreement concluded between Turkey and the then EEC in 1963. Upon leaving the EU, the UK will no longer be a party to this agreement; therefore a new agreement to be negotiated between Turkey and the UK is to replace it. It is important to note that because of the Customs Union, we will have to wait until the EU has concluded its own agreement with the UK. However, we have to be alert, proactive and determine our position tediously during these negotiations. Besides EU, we are among the countries that are expected to be most negatively affected from Brexit. As the Turkish business community, we will continue to work with the Turkish Trade Ministry during this process.”

IKV Chairman Zeytinoğlu concluded his statement touching upon post-Brexit Turkey-EU relations and said the following:

“The EU maintains its economic and political importance. In this period that started with the US President Trump’s trade wars, the proliferation of protectionist measures endanger value-chains. In this context, our trade and economic relations should be strengthened by modernising the Customs Union. As a beginning, rapid reforms in the administrative field, justice sector and fundamental rights are compulsory for the launch of the modernisation of the Customs Union and normalisation of the relations with EU. Furthermore, after Brexit, Turkey would be losing a Member State supporting its EU accession bid. France’s approach is obvious. French President Emmanuel Macron has continuously stressed his preference for a restoration of a new partnership with Turkey. German Chancellor Angela Merkel was also supportive of a privileged partnership; however she did not reflect her position on the negotiations. As of 1 July, Germany will assume the rotating presidency of the EU. We should make the most of this six-month period and take the necessary steps to work together with Germany for revitalising the Turkey-EU relations and launching the process for the modernisation of the Customs Union.”