‘Political hurdles delay much-needed update of customs union’

ANKARA

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The customs union between Türkiye and the EU has turned into a "partnership agreement" with systematic and chronic problems due to long-standing political reasons behind its upgrading, Trade Minister Ömer Bolat has stated.

The customs union, which aims at facilitating customs transit in external trade, has remained in effect for a longer period than initially expected, mainly because Türkiye’s full membership bid in the EU has not been clarified, Bolat told daily Milliyet.

"The absence of Türkiye’s participation in the EU decision-making processes, the difficulties in adopting the free trade agreements signed by the EU, road quotas and visa issues have become chronic problems preventing us from fully benefiting from the customs union,” he stated.

Describing the EU as the "most important partner,” Bolat emphasized that renewing and updating economic and trade relations with the 27-member European Union would benefit both sides significantly, citing the need to renew and improve the customs union to overcome these systemic problems as well.

"Initiating negotiations for the update of the union will create an important opportunity for discussing these issues and reaching an agreement. Therefore, updating is crucial for maximizing gains, solving systemic problems and adapting to current conditions."

Commenting on the reasons for the deal not being updated, Bolat said that despite the support from the European Commission and the European business community, political reasons have hindered progress.

"In our discussions, we emphasized that our priority in our trade relations with the EU is the update of the customs union and that we expect progress. Commission officials support the process but they point out that the authority to initiate the process should be granted by the Council."

Noting that Schengen visa rejections have become a barrier to market entry for goods and services exports, Bolat noted they are working on establishing provisions to facilitate the mobility of businesspeople.

Similarly, Turkish Foreign Minister Hakan Fidan emphasized that despite the primary request from the EU being visa liberalization, the current urgent focus is on providing visa facilitation for businessmen and students during his recent meeting with Oliver Varhelyi, the EU commissioner for neighborhood and enlargement.