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12 Haziran 2015

IKV ORGANIZED A SEMINAR ON GAINING ACCESS TO THE INTERNAL MARKET OF THE EU AS REGARDS TO NON-MEMBER STATES

IKV organized a seminar entitled “Gaining access to the European Union's internal market: EU accession vs. alternative models for non-Member States".The main speaker of the conference was Prof. Ruth Tobler from Leiden and Basel Universities. IKV Board of Directors Vice Chairman and Dean of the Faculty of Law of Yeditepe University Prof. Dr. Haluk Kabaalioğlu gave the opening of the conference. Prof. Dr. Kabaalioğlu stressed that the Custom Union between the EU and Turkey entered into force in 1996 and constituted the previous stage to EU accession. Furthermore, he indicated that whilst the Custom Union was established 20 years ago, Turkey is still far from accession. As regards to the TTIP currently negotiated between the EU and the US, Prof. Dr. Kabaalioğlu indicated that it will affect directly Turkey because it is not a full member of the EU. He further explained that we are facing a situation where industrial products can move freely in the EU but Turkish exporters require to obtain a visa to enter the territory of the EU.

Following the opening remarks of Prof. Dr. Kabaalioğlu, the main speaker of the conference Prof. Ruth Tobler from Leiden and Basel Universities gave a presentation on the alternative models of the relations with the internal market (such as Switzerland, Turkey or the United Kingdom). Prof. Tobler indicated that the EU internal market represents currently a total of 500 million inhabitants market and is the most powerful single market in the world. Furthermore, she added that there are several levels of integration to this market: accession to the EU (the most difficult), association, specific agreements (such as in the case of Switzerland) and micro-state relations (such as Andorra, Monaco and San Marino). Prof. Tobler further explained that in the 1960s, when it was established, the main purpose of the internal market was to avoid war and to promote peace and stability through economic cooperation. Moreover, Prof. Tobler underscored that the single market covers the four freedoms enshrined in the Treaty of Rome which are goods, services, capital and persons (and which constitutes EU primary law). As for EU secondary law, it is constituted by the mutual recognition of standards. Furthermore, Prof. Tobler indicated that a very important development in the internal market has been made with the establishment of EU citizenship which basically meant that border controls between Member States have been abolished and that a citizen from one country can settle in another without facing border checks or other difficulties. Regarding the current main challenges to the internal market, Prof. Tobler indicated that there are disadvantages towards those that remain outside the internal market and WTO principles which point out that there exists an exception as for the regional trade blocks.

Whilst the internal market is composed of 28 Member States, Prof. Tobler explained that there are different groups of countries as regards their relationship with the EU: EU candidates (and potential candidates), EFTA Member States (Switzerland, Liechtenstein, Norway and Iceland), Micro States (Andorra, Monaco, San Marino, Vatican City), countries of the Eastern Partnership (Ukraine, Moldova, Belarus, Georgia, Armenia and Azerbaijan), other neighbours which have a special partnership with the EU (Russia) and countries that are negotiating  comprehensive trade agreements with the EU such as TTIP and CETA (such as the US and Canada). Prof. Tobler stressed that in the current globalised economy, no country can be an economic island as there is growing interdependence between virtually all regions of the world. Moreover, Prof. Tobler stressed that the EU constitutes for Turkey its single biggest trade partner, as is the case also for Switzerland. However, Prof. Tobler added that although there is free circulation of goods between Turkey and the EU, there remains a discrepancy as it has yet not been followed by a free movement of services and people. However, Prof. Tobler further stressed that the standstill clause which is enshrined within the framework of Turkey-EU association law does not allow more obstacles regarding the movement of services.

Prof. Tobler underlined the existence of two different approaches regarding the relationship with the EU when comparing Turkey and Switzerland. Whilst Turkey signed with the EEC an association agreement in 1963 which included from the very beginning a perspective for future accession to the union, there is no such agreement between Switzerland and the EU. Furthermore, Prof. Tobler indicated that the Swiss people were reluctant in their majority in the perspective of accession to the EU and were more supportive of a close economic cooperation with the latter. Moreover, Prof. Tobler that the beginning of the 1990s was a turning point for Swiss-EU relations with the Swiss government declaring that EU accession constituted a strategic aim for Switzerland. Furthermore, Prof. Tobler stressed that an agreement was signed between the EEC and EFTA in 1992 which lead to the creation of the EEA (European Economic Area). Nonetheless, Switzerland did not ratify this agreement. Prof. Tobler further indicated that the Swiss government backs a “long term accession” strategy regarding Switzerland’s relationship with the EU. Whilst the EEA constitutes a far reaching association, Prof. Tobler reminded that it does not include characteristics such as EU citizenship nor external trade policy (in other words, non-EU Member States that are Members of the EEA have full competence dealing with the WTO by their own). Whilst Prof. Tobler indicated that the institutional framework of the EEA is ensured by an EEA Council and EEA Joint Community which guarantees the homogeneity of EU law, there is currently a proposition to integrate AMS countries (Andorra, Monaco and San Marino) within the realm of the EEA. Prof. Tobler added that the current treaties between Switzerland and the EU do not cover external relations, VAT, currency, the Schengen Agreement or EU citizenship. Prof. Tobler further added that she personally supports such a perspective regarding Switzerland’s relationship vis-à-vis the EU.

Regarding accession to the EU, Prof. Tobler underlined that the basic idea is about pooling on sovereignty. As such, the internal market provides the same benefits and obligations for all Member States, a common external trade policy (such as the representation of all Member States through the EU delegation at the WTO), a tax agreement (Directive 2006/112) of 15% and a common currency (the euro).  Institutionally speaking, Prof. Tobler indicated that with the accession to the EU, a Member State fully participates to the EU institutional system. Furthermore, Prof. Tobler pointed out that the UK, with its perspective for a referendum regarding a possible retreat from the EU is in a difficult negotiating position.

Lastly, Tobler referred to the ongoing negotiations regarding TTIP between the EU and the US. She stressed that upon its materialisation, it would constitute the largest trading bloc in the world. Moreover, Tobler added that non-Member States regularly express their concern because of possible discrimination or disadvantages (for countries such as Turkey). As such, Prof. Tobler stressed that whilst Turkey is part of a Customs Union with the EU, it does not participate to the decision making of EU law nor to the decision shaping (which is the case for EEA countries).  On the other hand, Switzerland participates in the decision shaping process.