World Bulletin | 13 May 2014

Turkey demands Free Trade agreement with EU and US

If Turkey is excluded from proposed FTA agreement, Turkey may consider renouncing the EU custom union agreement, an official in Turkey’s Economics Ministry warns

Turkey has to be party to a proposed Free Trade Agreement between the EU and the U.S., Turkey’s Economic Ministry declared on Monday, stressing that otherwise Turkey should consider renouncing their custom union agreement with the EU.

Turkish Minister of Economy Nihat Zeybekci arrived in Boston on Tuesday to meet U.S. counterparts in Washington on Wednesday as part of the "Framework for Strategic Economic and Commercial Cooperation" between the Turkey and the U.S.

During a reception held by Turkey’s consulate general in Boston prior to official talks planned for Wednesday, Zeybekci emphasized that Turkey has to be admitted into The Transatlantic Trade and Investment Partnership (TTIP) between EU and U.S.

“If Turkey is not in the agreement between the U.S. and EU, Turkey may renounce their custom union agreement with the EU due to the substantial damages suffered,” Zeybekci said.

Explaining that they will evaluate the possible effects of the proposed TTIP agreement with Turkey during official talks, Zeybekci said that Turkey should be accepted to the new agreement since it is already a member of the EU’s custom union agreement.

As a member of the EU’s custom union agreement, Turkey complains that free trade agreements signed by the EU with other countries effectively opens Turkey’s market to exports from these countries, but that these trade agreements would effectively block Turkey from the tax advantages associated with exporting goods to them, since Turkey is not party to these free trade agreements.

Zeybekci said that Turkey doesn’t want to renounce the EU custom union agreement, but that Turkey should be included in scope of the new TTIP agreement, recalling that Prime Minister Recep Tayyip Erdogan has talked with President Barack Obama regarding the issue.