The need to update and modernize the Customs Union, which has various problems in its functioning in today's conditions and lags behind current trade agreements, continues. In addition, the twin transformation process in which the EU redesigned all Single Market rules was added to the issue of updating the Customs Union. The EU, which is a leader in the fight against the climate crisis, strives to play a global standard-setting role. In this regard, the ambitious transformation process that the EU initiated on the basis of sustainability and environment with the European Green Deal on 11 December 2019 continues in parallel with the digitalization agenda. Türkiye, which is an EU candidate country and has a Customs Union with the EU, has to closely follow the transformation process of the EU within the framework of the twin transformation. As a matter of fact, Türkiye exports more than 40% of its exports to the EU, and the twin transformation process will directly affect Türkiye-EU trade relations. 

This publication examines the possible effects of the twin transformation on the issue of updating the Customs Union, which has been dragging on for years. After analyzing what the green and digital transformation will change within the Union, its transformative effect on Türkiye is discussed and it is concluded that green and digital transformation will directly affect the process of updating the Customs Union. 

The PDF version of the publication can be found here. 

Publication Title: Updating the Customs Union in the Context of Twin Transformation and Türkiye
Publication No: 324
ISBN: 978-605-7756-19-0
Date of publication: September 2023
Number of pages: 64
Prepared by Ahmet Emre Usta, IKV Junior Researcher and Nagehan Nur Uysal, IKV Junior Researcher