After having reminded that the actions for the modernisation of Turkey-EU Customs Union could not start due to political reasons, IKV Chairman Ayhan Zeytinoğlu emphasised that this issue is a matter of urgency. Chairman Zeytinoğlu stated his expectations for the beginning of the normalisation process with the EU following the end of the state of emergency and continued as follows:

“We have not made any progress in relation to the EU for the past two years. A new opportunity has emerged with the end of the state of emergency, the issue the EU continuously laid emphasis upon. The transition to the new system and the establishment of the government in Turkey are important in terms of stability. The improvement in diplomatic relations with the Netherlands and Germany's lifting economic sanctions, while alleviating the travel warnings indicate that a new era is beginning with the EU. Developments all over the world, the rising competition between the US and China, Russia's power politics, Turkey’s involvement in Syria and especially Trump’s confrontational attitude towards Europe reminded Turkey's importance to the Europeans. Hereupon, we expect the acceleration of the reform process in the political and economic environment and strengthening of the legal system, particularly jurisdiction, taking into account the EU process. This way, it will be possible to revitalise the accession process and the normalisation in the relations with the EU that is our main export market.”

“EU Speeds up FTA’s despite Trump’s Protective Moves”

IKV Chairman Ayhan Zeytinoğlu also touched upon the EU’s trade policy in the light of recent developments in the world trade and emphasised that the EU aims to increase its share in world trade, especially through FTA’s. Chairman Zeytinoğlu continued his words as follows:

“Recently, we are witnessing the trade wars triggered by US President Trump. Trump is taking measures to protect the domestic industry with customs tariffs against countries such as China and Germany and blocks such as the EU, where the US runs trade deficit. However, unlike Trump the EU does not give up its FTA policy. Finally, an Economic Partnership Agreement (EPA) was signed with Japan on 17 July. Negotiations are starting with New Zealand and Australia. Previously, a "deep and comprehensive" FTA was signed with Canada. The EU climbs over the protection walls with these agreements. It is important for countries such as Turkey which have Customs Union with the EU to accommodate these FTAs.

“The Article in the EPA with Japan must be applied to Turkey"

Chairman Zeytinoğlu stated that there is a special arrangement in Japan EPA’s appendix for San Marino and Andorra, the countries which also have Customs Union with the EU and he noted:

“EU signed a comprehensive EPA with Japan on 17 July. This agreement will also be accompanied by a Strategic Partnership Agreement. In the appendix of the agreement, there is an extremely important expression which affects San Marino and Andorra. The products of San Marino and Andorra are expected to be recognised as the EU products by Japan while the products originated from Japan are expected to foresee the implementation of the same EU tariffs by Andorra and San Marino. This way, there is no need for Andorra and San Marino to negotiate for an FTA with Japan. These two mini states are in Customs Union with the EU just like Turkey. Nevertheless, while the EU adds special provision to this agreement for these two states, it does not do the same for Turkey. For Turkey, which is in the Customs Union with EU, similar provision must be added to this and similar agreements. We must convey this fact strongly to the European authorities. Turkey is a big country which cannot be compared to these countries. We are hoping that facilitating measures will be taken for a country which is the 5^th trading partner of the EU.”

Chairman Zeytinoğlu also expressed that safeguard measures should not be the subject of a well-functioning and equitable Customs Union and stated that both the EU and Turkey should leave the mutual application of these practices which is essential for the healthy functioning and trust environment for the Customs Union.