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INTERNATIONAL RELATIONS
Turkey has been a party to several international bilateral and multilateral agreements (either economic and/or political/strategic) organizations such as:
United Nations system
NATO (North Atlantic Treaty Organization)
Council of Europe
OECD (Organization for Economic Cooperation and Development)
Associate Member of European Union
WTO (World Trade Organization)
ILO (International Labor Organization)
ECO (Economic Cooperation Organization)
OIC (Organization of the Islamic Conference)
BSEC (Black Sea Economic Cooperation)
IBRD (International Bank of Reconstruction and Development), IMF and MIGA
EBRD (European Bank of Reconstruction and Development)
Asian Development Bank
Islamic Development Bank
Developing Eight (D-8) |
FOCUS: CUSTOMS UNION AND RELATIONS WITH THE EU
One of the major commitments of Turkey in both political and economic sphere has been her candidacy for EU and her Customs Union Agreement that came fully into force in 1996.
As Customs Union Agreement refers to the harmonization of the Common Commercial Policy which includes the common external tariff as well as safeguard measures to provide direct protection with EC quota system, anti-dumping and anti-subsidy measures, Turkey
abolished her tariff and non-tariff protection against the EU for all goods covered by the Customs Union (the gradual alignment of tariff structure was completed at the end of 1995)
is aligning herself to the EU Common External Tariff
is assuming the preferential trade system of the EU through Free Trade Agreements with third countries.
In order to achieve competitiveness in the long term and adjust herself to the Customs Union, Turkey has taken several initiatives to harmonize her legal and institutional framework with that of the EU.
These include:
Harmonization of Competition Law and appointment of Competition Board
The adoption of legislation in the field of intellectual property protection
Linking state aids to common criteria
Harmonization of Turkish standards with that of the EU in industrial goods
Hamonization of Corporate Law
Liberalization and opening up of public auctions within the framework of changes in the Turkish legal system
Legal arrangements in transportation
Organizational changes
Harmonization of legislation in environmental issues
Free circulation of services and the enactment of laws on foreigners |
Progress in the Period of Customs Union:
Around half of Turkey’s trade is with the EU countries. The EU accounted for 51.9% of Turkish exports in 2003, at 24.3 bn USD, compared to 49.7% in 1996, at 11.3 bn USD.
Imports from the EU countries was about 31.4 bn USD, or 45.8% of Turkey’s total imports in 2003, while in 1996 imports accounted for 53% that is 23.1 bn USD.
Four EU countries being Germany (13.6%), Italy (7.9%), France (6%) and the UK (5%), accounted for 32.5% of total Turkish imports in 2003.
Agricultural products, iron and steel and pharmaceuticals initially constituted three major exemptions to the Customs Union. On January 1, 1999 the exemption on pharmaceutical products and processes was removed when Turkey revised her legislation to secure the patentability in pharmaceuticals. A free trade agreement with the EU on iron and steel products, which make up about 12% of Turkish exports, was signed in 1996. Turkey has reduced duties on iron and steel products from the EU countries to zero.
The average weighted rate of protection for non-EU/EFTA industrial products was 6% in early 2003. VAT also applies to non-EU countries. |
Recent Developments in the Relations with the EU:
Having been confirmed the candidature status of Turkey for accession at the Helsinki European Council in December 1999, a new era commenced in the relations between Turkey and the EU. The European Commission declared the “Accession Partnership of Turkey” on March 2001, while Turkish government announced her own “National Program for the Adoption of the EU Acquis” on March 2001.
In the light of these developments, a number of legal and administrative regulations have been promulgated under the 28 chapters of the national program and the efforts for harmonization are still continuing. The Economic Program recently initiated by the Turkish government for restoring macroeconomic stability in Turkey is complementary to the National Program. Both programs aim at achieving public discipline and realizing structural reforms. The Framework Agreement that outlines the general principles of participation of Turkey to the Community programs came into force on June 2002.
In Copenhagen Summit on December 2002, it was noted that provide that Turkey fulfils the Copenhagen political criteria in line with the Council’s Progress Report on Turkey and Commission’s view, Turkey would start membership negotiations right away in December 2004 summit. On October 6th, 2004, the Commission Report recommended to start accession negotiations with Turkey and in the Summit on December 17, 2004, it was suggested that the negotiations start in October 2005 after the screening process.
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INTERNATIONAL RELATIONS
