Economic Implications for Turkey of a Customs Union with the European Union: A Quantitative Based Policy Analysis

52 Pages Posted: 19 Jan 1998

See all articles by Glenn W. Harrison

Glenn W. Harrison

Georgia State University - J. Mack Robinson College of Business

Thomas F. Rutherford

Centre for Energy Policy and Economics

David G. Tarr

International School of Economics at Tbilisi State University

Abstract

Turkey and the European Union (eu) have agreed to implement a customs union. This means Turkey will eliminate its tariffs and levies on imports of manufactured products from the European Union. Turkey will also apply the eu's "common external tariff" on imports from third countries. Turkey will be obligated by 2001 to provide preferential access to its markets to all countries to which the eu grants such access. Since Turkey is both eliminating tariffs on eu imports and reducing tariffs on imports from third countries, it will become a rather open economy in nonagricultural sectors, with tariffs below 2 percent (zero for imports from the eu and slightly over an average 3 percent for thirdcountries). And since preferential access agreements with third countries will typically be reciprocal, Turkish exporters can expect improved access to those markets.

JEL Classification: F14, F15

Suggested Citation

Harrison, Glenn William and Rutherford, Thomas F. and Tarr, David G., Economic Implications for Turkey of a Customs Union with the European Union: A Quantitative Based Policy Analysis. Available at SSRN: https://ssrn.com/abstract=53840 or http://dx.doi.org/10.2139/ssrn.53840

Glenn William Harrison (Contact Author)

Georgia State University - J. Mack Robinson College of Business ( email )

P.O. Box 4050
Atlanta, GA 30303-3083
United States
407-489-3088 (Phone)
253-830-7636 (Fax)

HOME PAGE: http://www.cear.gsu.edu/

Thomas F. Rutherford

Centre for Energy Policy and Economics ( email )

ETH-Zentrum
Zurich, CH-8092
United States
+41 (0)44/632 6359 (Phone)
+41 (0)44/632 1622 (Fax)

HOME PAGE: http://www.cepe.ethz.ch/

David G. Tarr

International School of Economics at Tbilisi State University ( email )

16 Zandukeli Street
Tbilisi, 0108
Georgia