Aspects of the EU – Turkey relations

By Andreeva Yana, Hristova Stanislava, Mantosvka Raya

EU – Turkey relationship over the

years

• Since 1949, Turkey has been a member of the Council of Europe.• In 1959, the EU began negotiations with Turkey on an Association Agreement. • In 1963 Ankara Agreement was signed. It was clearly mention the prospect Turkish membership.• Establishment of the Customs Union in 1995.• Under the Finish Presidency, in 1999, the EU leaders decided to grant Turkey the status of a candidate country. Turkey “was destined to join the Union on the basis of the same criteria as applied to the other candidate States.”

• On 3rd of October 2005, the foreign ministers of all 25 states reached an agreement the framework for the negotiations. • The first stage of the accession negotiations that went smoothly ended on 13th of October 2006.• Large number of delegation officials was sent to Brussels to review the 35 ‘chapters’ of Turkish legislation which will have to be brought into line with EU law.

In June 1993, the European Council of Copenhagen laid down the conditions for the accession process of Central and Eastern European Countries to the EU.

There has been much controversy about whether Turkey is a European country.

Only 3% of its territory lies geographically in Europe. The rest of Turkey is in Asia.

Copenhagen criteria

“Membership requires that the candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities.”

Between 1999 and 2005, Turkey made substantial democratic reforms. The country ‘sufficiently’ fulfilled the Copenhagen political criteria. Being part of the EU would serve as a model secular democracy in the Muslim world and enhance the Europe’s security.

By allowing full membership, the Union is guaranteeing the human rights of all people of Turkey and thus the minority – Kurds would be immediate beneficiaries of this accession.

However, the EU is also “value-based community.” This is not to say Europeans are ethnically prejudice and feel they have moral and ideological superiority it is just to illustrate the difficulties that Turkish accession with a population of about 70 million Muslims, about 50% of whom are 18 or younger, would pose for the EU. Turkish accession would not be easy for Europeans or the Turks.

BUT,

Obstacle to the Turkish accession is also the religions background of the country. The former president of the European Commission, Jacques Delors, once said that the EU was a “Christian club.”

The Cyprus Issuetimeline

• Cyprus gained its independence from Britain in 1960

• In 1974 riots led to a sponsored by the Greek government attempt to seize the power, which was followed by a military intervention by Turkey

• In 1983, the northern part of the island declared itself the “Turkish Republic of Northern Cyprus” (TRNC).

• In April 2004, the Greek Cypriots rejected an UN-sponsored unity plan, while the Turkish Cypriots approved it in a referendum. 

• In July 2005, Turkey signed a protocol enlarging its customs union to the EU-10 states, but simultaneously Ankara issued a declaration saying that its signature did not mean its recognition of the Greek Cypriot state. Turkey also refused to open its ports and airports to Cyprus.

• On 3 October 2005 the Council decided to open accession talks with Turkey.

• On 29 November 2006, the Commission recommended the suspension of talks with Ankara for eight out of 35 areas.

• In May 2004, the EU accepted the Greek Cypriot-controlled “Republic of Cyprus” as a full member of the Union.

• In December 2004 at the European Council summit EU leaders agreed to start accession negotiations with Turkey on 3 October 2005.

• On 29 March 2007, the EU gave its approval to opening accession negotiations with Turkey for the area of enterprise and industrial policy, the second of 35 negotiation chapters.

• Turkish Chief Negotiator Ali Babacan said that “Turkey needs reforms.”

• On 7 December 2006, a diplomatic move was made on behalf of Turkey by offering to open one port and one airport to trade from Cyprus.

• On the EU summit held on 11 December 2006, was agreed to follow the Commission’s recommendation to impose sanctions on Turkey and postpone talks on eight of 35 chapters.

The EU’s opinion on the Cyprus Issue

• The Turkish army and Turkish economic support are the most important sources of power for the TRNC, Turkey could use that as incentive for reaching to settlement with the Turkish Cypriots.

• As nobody is forcing Turkey to become a member of the EU, it is up to Turkey now to prove the seriousness of its European vocation.

• Turkey’s accession strategy is that it should be closely connected to the improvement of Greek-Turkish relations and the resolution of the Cyprus issue.

• Solution of the Cyprus problem due to Turkey’s the justifiable conviction that it has influential leverage on the TRNC.

• An important gain for Turkey – membership to the EU

EU – Turkey Customs Union

• Initially agreed in 1963, as the final phase of the Association Agreement between the European Economic Community and Turkey

• Officially established on January 1, 1996

- the closest economic and political

association between the EU

and any non-member state

The Customs Union includes:

• Abolition of all customs duties and charges,

as well as the prohibition of all quantitative

restrictions between the parties

• Implementation of a common customs tariff to the third countries

• Adoption of measures for the harmonization of commercial and competition policies, including intellectual property laws, with those of the EU, and extends most of the Unions

trade and competition rules to the Turkish economy. 

The Customs Union covers

• all industrial goods

BUT does not address:

• agricultural goods (except for processed agricultural products)

• services

• public procurement

Mutual commitment to include

agriculture through ongoing negotiations

with a view to establishing a Free Trade Area.

• Turkish goods have been entering the European Union without customs since 1971.

BUT , in 1973, Turkey agreed to open its customs to the EU imports gradually, for a 22-year-period until 1995

• Today, the EU is Turkey's most important trading partner, ranking as number one in both Turkey's imports (52.4%) and exports (58.1%)

• Turkey ranks 7th in the EU's top import and 6th in export markets.

EC – Turkey trade relations

EU imports from Turkey:

• Textiles - 40% • Transport materials - 16.3% • Agricultural products - 8.9% • Office machinery and

telecommunications equipment - 5.8%

EU exports to Turkey

• Machinery – 28.3%• Chemical products – 16.4%• Transport material – 19.1%

Impact on Trade Volume

• In 1993 – EU-Turkey trade volume surpassed $20 million• With the entry into force of the customs union in 1996: - Turkish imports have increased by 32.5% compared to the

previous year - exports rose by 3.7%• In 1999 – trade volume reached $35.7billion • When agricultural products are included in the customs union - 14% increase of vegetable exports - 12.5 % increase of fruit exports - 38.5 % of processed vegetables and fruits is expected

Positive Impact of the Implementation of Common Customs Tariff

• Turkey gained more access to third country markets

- gain of 1-1.5% of GDP annually from customs union

• Rate of the custom tariffs:

- before the customs union, the overall protection rates against third countries were 15 % on average

- with the CCT, rates have decreased to 5,6 % and will be reduced further with the conclusion of the multilateral trade

liberalization negotiations within the WTO

Negative Impact of the Implementation of Common Customs Tariff

• Most of Turkey’s trade deficit stems from the import of industrial products from countries - especially China - which apply the customs regime with the EU.

- competition of cheap products of countries with which Turkey did not directly sign free trade agreements, as they can enter Turkey without customs duties or quotas via the EU

- one of the most affected sectors is the textile sector

Conclusion

• Turkey has made great progress in adopting EU legislation and establishing similar structures like those in the Community

• Policy harmonization and democratic reforms serve as a proper foundation for further approximation in other fields of political and economic integration.