Customs Union with EU
Source: Prime
Ministry, Undersecretariat of Treasury
On January 1st 1996, the Customs Union between the
European Union and Türkiye came into effect, thereby creating the closest
economic and political relationship between the EU and any non-member
country.
Essentially the Customs Union gives Türkiye improved
access to the group of countries previously known as the Common Market. It
guarantees the free circulation of industrial goods and processed
agricultural products. Customs duties and charges have been abolished and
quantitative restrictions such as quotas are prohibited. The Customs Union
involves harmonisation of Türkiye's commercial and competition policies
including intellectual property laws with those of the European Union and
it extends most of the EU's trade and competition rules to the Turkish
economy.
The chief characteristic of the Customs Union is that
goods will move freely between the EU and Türkiye without being subject to
customs duties or quantitative restrictions; it covers all aspects of trade
and commercial policy to ensure there is a "level playing field"
for Turkish and European firms. The main features of this Decision are:
- the elimination of customs duties, quantitative
restrictions and measures of equivalent effect on trade in industrial
goods, including processed agricultural products, between Türkiye and the
EU.
- the adoption by Türkiye of the EU's Common External
Tariff in its trade with third countries.
- the adoption by Türkiye of measures equivalent to
the EU's common commercial policy.
- progressive alignment of tariffs by Türkiye in line
with the EU's preferential trading arrangements with certain third
countries.
- the adoption by Türkiye of customs provisions in
line with those of the EC.
- agreed competition rules and the alignment by Türkiye
of its legislation in this area with that of the EC.
- the adoption by Türkiye of legislation in the field
of intellectual property protection to secure a level of protection
equivalent to that in the EC.
- the abolition by the EC of Voluntary Restraint
Arrangements in trade in textiles with Türkiye.
- the formation of an EC/Türkiye Customs Union Joint
Committee and the adoption of other institutional arrangements to enable Türkiye
to be properly informed of, and formally consulted about policy formulation
in the EC on matters which affect the Customs Union.
During the Association Council meeting, a Resolution
was also adopted in accompanying areas which provides for the
intensification of cooperation between the European Union and Türkiye in
the fields which are not covered by the Customs Union ie. industrial
cooperation, Trans-European networks, cooperation on energy, transport,
telecommunications, agriculture, environment, science, statistics, matters
relating to justice and home affairs, consumer protection, cultural
cooperation, information and communication.
Upon entry into force of the Customs Union Decision, Türkiye
cut all duties and equivalent charges on imports of industrial goods from
members of the EU to zero. Furthermore, Türkiye harmonised its tariffs and
equivalent charges on the import of industrial goods from "third
countries" with the Common External Tariff of the EU, and will
progressively adopt EU commercial policy and preferential tariff policies
within 5 years. For certain specifically identified "sensitive"
products Türkiye will maintain rates of protection above those specified in
the Common Customs Tariff for imports originating in third countries for up
to five years. These products include mainly ceramic products, motor
vehicles and footwear.
Harmonisation work so far with the EU's commercial
policy includes monitoring and safeguarding measures on imports both from
the EU and third countries, the management of quantitative restrictions and
tariff quotas and the prevention of dumped and subsidised imports.
Türkiye has adopted EU rules and legislation on
competition. Subsidies through State resources in any form whatsoever which
distort or threaten to distort competition are banned. However assistance
to promote economic development in Türkiye's less developed regions and
assistance intended to promote cultural and heritage conservation and which
does not adversely affect competition will be allowed. On the other hand, Türkiye
will progressively adjust any state monopoly of a commercial character so
as to ensure that no discrimination exists in the conditions under which
goods are produced or marketed between nationals of EU member countries and
Türkiye.
Türkiye has harmonised its laws with EU legislation
eliminating technical barriers to trade. There is now effective cooperation
between Türkiye and the EU in the fields of standardisation, calibration,
quality, accreditation, testing and certification. Türkiye has also
harmonised its legislation on intellectual, industrial and commercial
property to EU standards and has implemented laws covering consumer
protection, and the protection of competition. Both sides are banned from
using internal taxes as indirect protection mechanisms and from using tax
rebates as export subsidies. Top
