IKV, organised a workshop on Customs Union in cooperation with the BDU International Businesspersons and Diplomats Union on 16 February 2024.

The opening speeches of the workshop were delivered by BDU International Association of Businessperson and Diplomats Union’s Vice President Güney Ferhat Batı and IKV Secretary General Assoc. Prof. Çiğdem Nas.

In the special address section of the workshop, the Deputy Director General for International Agreements and Relations with the EU at the Ministry of Trade Bahar Güçlü started her presentation by touching upon the history and importance of the customs union in Türkiye-EU relations and stated that the customs union for Türkiye not only covers the free movement of goods but also focuses on developing Türkiye in every sense by creating responsibilities for compliance with the EU acquis. Stating that the potential of the customs union should be increased for the parties to be competitive and to develop both economically and socially, especially in terms of economic development, Güçlü emphasised that the problems regarding the functioning of the customs union should be eliminated for Türkiye and the EU to increase this potential. Güçlü also touched upon Türkiye's visa difficulties and transport quota barriers. Expressing that it would be easier to solve the problems if the parties come together regularly, exchange ideas and have information about the free trade agreements that the parties have concluded with third countries, Güçlü also mentioned the importance that the EU has recently given to green and digital transformation. Güçlü concluded his speech by underlining that Türkiye should ensure a strong integration by not lagging this twin transformation process.

In the first panel moderated by IKV Secretary General Assoc. Prof. Çiğdem Nas, BDU International Businesspersons and Diplomats Union President Hnr. Prof. Musa Karademir stated that the Ankara Agreement, which entered into force in 1964, marked the beginning of Türkiye-EU relations and that this agreement was signed during the most severe period of the Cold War. Underlining that the customs union is one of the most important commercial issues in Türkiye-EU relations, Karademir stated that the Additional Protocol, which entered into force in 1973, was a very important step in the process leading to the customs union and that at that time it was expected that Türkiye would become a member of the EU in a short time after the completion of the customs union. Karademir pointed out that in the 1990s, the transition to the final stage of the customs union was discussed and that while the textile sector supported the process, whereas the automotive sector approached the issue with serious scepticism, and that today the automotive sector has surpassed the textile sector in terms of exports.

The second speaker of the first panel, IKV Deputy Secretary General M. Gökhan Kilit started his speech by emphasising the importance of the customs union in Türkiye-EU economic relations. The customs union put Türkiye in a highly competitive position, but the real progress for Türkiye was made after 1999, when it became a candidate country, and after 2004, when accession negotiations started. Kilit mentioned the high level of international direct investment between 2005 and 2008 as an example for his claim. Stating that the sectors in Türkiye have structural problems, Kilit emphasised that these structural problems should be solved, and the sectors should be made more competitive. Kilit drew attention to the problems arising from the asymmetric structure of the customs union, as well as its narrow scope, transport quotas and visa problems. Stating that the EU has signed many free trade agreements so far and that it is the first-ranked trading partner of many countries in the world today, Kilit mentioned the difficulties Türkiye has experienced in signing free trade agreements under similar conditions. In his presentation, Kilit stated that becoming a member of the EU brings with it inclusion in the Common Agricultural Policy, which means that it is easier to realize structural transformation in the field of agriculture by benefiting from EU funds, and said that Türkiye should sit at the table for the negotiations on the updating of the customs union with the EU by being aware of the agricultural products it has advantages as well as the problematic areas. Finally, Deputy Secretary General Kilit provided information on geographical indications and concluded his speech by stating that Türkiye's geographically marked products have increased significantly in recent years and that these registered products have made a great contribution to Türkiye's economy and recognition.

The last speaker of the first panel, Paris Bosphorus Institute President Dr. Bahadır Kaleağası stated that in 2014, there were intense discussions on the possibility of extending the customs union to areas such as services, agriculture, transportation, visa liberalisation and public procurement, but that while Türkiye-EU relations had the potential to evolve to a more advanced dimension, this was not achieved. Underlining that the world is changing rapidly, Kaleağası stated that there are still important opportunities for furthering bilateral relations. Kaleağası emphasised that technologies such as 3D printers, quantum computers and artificial intelligence are developing at an incredible pace, and this will directly affect trade. In this context, Kaleağası stated that the issue of updating the customs union cannot be separated from these developments and that there is a need for a new customs union that includes digital, green, social transformation and sustainable development goals.

The first speaker of the second panel of the workshop moderated by IKV Deputy Secretary General M. Gökhan Kilit, İstanbul Kent University Dean of the Faculty Of Economics, Administrative And Social Sciences Prof. Hasret Çomak started her speech by mentioning the concepts of protection of personal data, data privacy and security. Çomak continued his speech by providing information on the features and obligations of the General Data Protection Regulation (GDPR). Stating that the EU has taken itself under protection through the GDPR, Çomak gave information on how data is processed in the GDPR. Çomak emphasised that this legal basis should be documented and the data subject should be informed in accordance with transparency. Çomak also touched upon the developments after GDPR and what needs to be done to process data securely. Çomak ended his speech by underlining that Türkiye should update the Law on the Protection of Personal Data and keep up with the new world.

The other speaker of the panel, Özyeğin University Faculty of Law Assistant Professor Özlem İnanç Şenses explained the history of the customs union in Türkiye-EU relations from a legal perspective. Şenses talked about the agreements and practices signed on green transformation and climate issues. In addition, Şenses shared information on the functioning of customs and the progress on the Carbon Border Adjustment Mechanism during the digital and green transformation process, which is called the twin transformation. Şenses concluded her speech by emphasising that Türkiye is making efforts to harmonize with EU legislation but is not yet at a sufficient level.

The last speaker of the second panel of the workshop, IKV Secretary General Assoc. Prof. Çiğdem Nas stated that in a period of increasing protectionist tendencies and authoritarianism globally, the EU embarked on a twin transformation process and took steps to increase its resilience. Emphasising that the EU put forward a political will for enlargement after the Russia-Ukraine war, Nas pointed out that the restructured EU entered an eastward expansion process. Providing information about the report on enlargement made public in September 2023 by a working group of French and German experts, Nas referred to the four-tier integration model in the report. Underlining that the first circle of this four-tiered integration model will be formed by more advanced forms of integration such as Schengen and the Euro Area, Nas stated that the second circle will include the EU itself, the third circle will include the "Associate Membership" model, which includes economic issues such as the Single Market, and the last circle will include the European Political Community strengthened with countries without membership perspectives. Nas emphasised that in the short term, it is not seen as easy for Türkiye to enter the first two circles, but Türkiye could be in the Associate Membership circle, which would include the updating of the customs union. Nas also warned that if the customs union update does not materialize and Türkiye fails to adapt to changing conditions, the EU could push Türkiye into the outermost circle of the four-tier integration model.