Turkey seeks to renew customs union agreement with EU

ISTANBUL – Anadolu Agency

EU Minister Mevlüt Çavuşoğlu during a press statement with new TÜSİAD head Haluk Dinçer, July 9. AA Photo

Turkey wants to renew its customs union agreement with the European Union to boost the country’s economy, EU Minister Mevlüt Çavuşoğlu said July 9.

Turkey is the only non-EU country that has a Customs Union Agreement, which was a key step to prospective EU membership. Cavuşoğlu stated that Turkey has now started to review the terms of the agreement, almost 20 years after it first went into effect in December 1995.

“As the EU negotiation process lingers, the negative impact on the economy grows. It is injustice for the Turkish economy,” he said during a fast-breaking iftar meal organized by the Economic Development Foundation (İKV).

As a signatory of the agreement, Turkish officials argue that free trade agreements signed by the EU with other countries effectively open Turkey’s market to exports from them, but block Turkey from the tax advantages associated with exporting goods to the same states, as Turkey is not a party to the deals.

At the same meal, European Commission Director General for Development Stefano Manservisi said the crisis-hit EU was currently undergoing a “transformation,” adding that “Turkey will help us build a stronger house.”