The EU-Turkey Customs Union: A Model for Future Euro-Med Integration

MEDPRO Technical report No. 9

26 Pages Posted: 26 Mar 2012

Date Written: March 14, 2012

Abstract

This paper studying the 1995 EU-Turkey Customs Union (CU) reveals that the CU has been a major instrument of integration of the Turkish economy into the EU and global markets, offering powerful tools to reform the Turkish economy. Turkish producers of industrial goods are protected by tariffs from external competition to exactly the same extent as EU producers, and they face competition from duty-free imports of industrial goods from world-class pan-European firms. In return, Turkish industrial producers have duty-free market access to the European Economic Area, which was recently extended to certain Mediterranean countries. Trade liberalisation achieved through the CU has thus successfully moved the Turkish economy from a government-controlled regime to a market-based one, and Turkish producers of industrial goods have performed remarkably well. The paper further shows that market access conditions for Turkish producers are determined, in addition to tariffs, by standards, conformity assessment procedures, competition policy, industrial property rights and contingent protectionism measures. The CU also offered Turkey the opportunity to establish new institutions, and modernise and upgrade rules and disciplines required for the elimination of technical barriers to trade, and for the implementation of the EU’s competition, industrial property rights, and contingent protectionism policies.

Keywords: EU-Turkey Customs Union, CU, Turkey, trade, EU, EEA, global markets, competition, duty-free, market access, trade liberalisation, industrial property rights

Suggested Citation

Togan, Subidey, The EU-Turkey Customs Union: A Model for Future Euro-Med Integration (March 14, 2012). MEDPRO Technical report No. 9, Available at SSRN: https://ssrn.com/abstract=2028937 or http://dx.doi.org/10.2139/ssrn.2028937

Subidey Togan (Contact Author)

Bilkent University ( email )

Bilkent, Ankara 06533
Turkey

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