trade eu – turkey customs union “eu-tr joint consultative committee " brussels, 7 november...
TRANSCRIPT
![Page 1: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/1.jpg)
TradeTrade
EU – Turkey Customs Union
“EU-TR Joint Consultative Committee "Brussels, 7 November 2013
![Page 2: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/2.jpg)
TradeTrade
EU – Turkey
Customs UnionJan 1,1996
Customs UnionJan 1,1996
Candidate countryDec 11,1999
Candidate countryDec 11,1999
Accession negotiationsOct 3, 2005
Accession negotiationsOct 3, 2005
![Page 3: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/3.jpg)
TradeTrade
Customs Union
• Covers all industrial goods but does not address agriculture (except certain PAPs), and coal and most steel products; both are covered by bilateral concessions (FTA type)
• Commits TR to align to the acquis communautaire in several essential internal market areas, notably customs legislation, common commercial policy, industrial standards, IPR, competition policy.
![Page 4: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/4.jpg)
TradeTrade
Benefits of the Customs Union
• Turkey has benefited from an “early” legislative alignment process before its accession negotiations started.
• Turkey is participating to a large extent in the EU single market for goods.
• Turkish producers gained competitive advantage in adopting (most) EU technical standards.
![Page 5: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/5.jpg)
TradeTrade
Benefits of the Customs Union (cont'd)
• Customs Union: driving force for trade liberalisation and integration into global markets
• Turkish companies are more and more integrated into the production network of the EU
• Increased sophistication of Turkish exports
![Page 6: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/6.jpg)
TradeTrade
Increased trade and investment relations
• Since 1996, trade between the EU and Turkey has increased more than fourfold (from 22.6 bn € in 1995 to 105.3 bn € in 2012, for EU 15 only)
• The EU has been an open and secure market for Turkish exporters
• Despite increased trade, diminishing share of Turkey's exports to the EU (in 2012 below 40%).
• However, to be emphasized that both the EU and Turkey are benefiting from the CU
![Page 7: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/7.jpg)
TradeTrade
EU trade with Turkey
010,00020,00030,00040,00050,00060,00070,00080,000
EU Imports
EU Exports
Trade Balance
Source: Eurostat
Millions of euro
![Page 8: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/8.jpg)
TradeTrade
EU's Trade With Main Partners (2012)
The Major Imports Partners The Major Exports Partners The Major Trade Partners
Rk Partners Mio euro % Rk Partners Mio euro % Rk Partners Mio euro %
Extra EU27 1,791,727 100.0% Extra EU27 1,686,774 100.0% Extra EU27 3,478,501 100.0%
1 China 289,915 16.2% 1 United States 291,880 17.3% 1 United States 497,658 14.3%
2 Russia 213,212 11.9% 2 China 143,874 8.5% 2 China 433,789 12.5%
3 United States 205,778 11.5% 3 Switzerland 133,341 7.9% 3 Russia 336,474 9.7%
4 Switzerland 104,544 5.8% 4 Russia 123,262 7.3% 4 Switzerland 237,885 6.8%
5 Norway 100,437 5.6% 5 Turkey 75,172 4.5% 5 Norway 150,258 4.3%
6 Japan 63,813 3.6% 6 Japan 55,490 3.3% 6 Turkey 122,961 3.5%
7 Turkey 47,789 2.7% 7 Norway 49,821 3.0% 7 Japan 119,303 3.4%
8 South Korea 37,861 2.1% 8 Brazil 39,595 2.3% 8 Brazil 76,685 2.2%
9 India 37,295 2.1% 9 India 38,468 2.3% 9 India 75,764 2.2%
10 Brazil 37,090 2.1% 10 South Korea 37,763 2.2% 10 South Korea 75,624 2.2%
Turkey is the EU’s 6th trade partner and ranks higher than some developed countries such as Canada (11) and Australia (15)
Source: Eurostat
![Page 9: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/9.jpg)
TradeTrade
EU imports from Turkey (2012)
![Page 10: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/10.jpg)
TradeTrade
EU exports to Turkey (2012)
![Page 11: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/11.jpg)
TradeTrade
Turkey's Trade With Main Partners (2012)
The Major Imports Partners The Major Export Partners The Major Trade Partners
Rk Partners Mio euro % Rk Partners Mio euro % Rk Partners Mio euro %
World (all countries)
167,582 100.0% World (all countries)
109,041 100.0% World (all countries)
272,622 100.0%
1 EU27 62,233 37.1% 1 EU27 42,280 38.8% 1 EU27 104,513 37.8%
2 Russia 17,291 5.0% 2 Iraq 5,989 3.1% 2 Russia 21,601 4.0%
3 China 15,573 4.5% 3 Russia 4,310 2.2% 3 China 17,345 3.2%
4 United States 11,529 3.3% 4 United States 3,315 1.7% 4 United States 14,845 2.8%
5 Iran 8,924 2.6% 5United Arab Emirates
2,673 1.4% 5 Iran 11,510 2.1%
6 India 4,667 1.4% 6 Iran 2,586 1.3% 6 Iraq 6,051 1.1%
7 South Korea 4,533 1.3% 7 Saudi Arabia 1,983 1.0% 7 India 5,210 1.0%
8 Switzerland 3,605 1.0% 8 Egypt 1,983 1.0% 8 South Korea 4,914 0.9%
9 Ukraine 3,457 1.0% 9 China 1,772 0.9% 9 Ukraine 4,702 0.9%
10 Japan 3,062 0.9% 10 Israel 1,717 0.9% 10 Switzerland 4,688 0.9%
The EU is Turkey's major trading partner.
Source: IMF
![Page 12: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/12.jpg)
TradeTrade
EU accession negotiations"Would you say that Turkey's accession negotiations with the EU have improved or deteriorated your perception of its attractiveness for FDI?"
Source: Ernst & Young's 2013 Turkey attractiveness survey on 201 investors
![Page 13: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/13.jpg)
TradeTrade
EU – Turkey investment relations
• The EU represents around 75% of incoming FDI to Turkey (average 2008-2012)
• Some 15,350 companies in Turkey with EU capital• 2007-2012, the EU directed 202 projects to Turkey,
focusing mainly on sectors with a high technology component. But business services, transport and logistics have also drawn investor attention.
![Page 14: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/14.jpg)
TradeTrade
EU-Turkey CU is a success story but …
Turkish complaints (e.g.): • FTAs issue – trade policy making• SPS controls on exports of Turkish agricultural products
(fruits, vegetables, meat)• Road quotas
Trade barriers/irritants faced by EU operators (e.g.):• full and non-discriminatory implementation of the CU to
the Republic of Cyprus• import and export licenses/restrictions for certain goods • GMP certificates in pharma sector• Intensive use of safeguard measures
![Page 15: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/15.jpg)
TradeTrade
Way forward
• The EU-TR CU is too limited in scope• Since several years, the EU concludes - and will
continue to conclude - deep and comprehensive FTAs with many important trade partners
• There have been attempts to extend the scope of the CU by the EU, but they have been unsuccessful so far
![Page 16: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/16.jpg)
TradeTrade
Way forward (cont'd)
• The EU-TR CU scope could be extended to cover also other areas such as agriculture, services, investment, public procurement, including an operational Dispute Settlement Mechanism to tackle unresolved/future trade irritants and to ensure full implementation
• Paradox: not doing that extension will leave the EU-TR CU behind the FTAs concluded by the EU.
![Page 17: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/17.jpg)
TradeTrade
Way forward (cont'd)
• WB made an assessment report of the CU and should present its final report with main findings and recommendations in Jan./Feb. 2014
• EU will study WB report and will thereafter consider together with Turkey which recommendations and policy options to take forward in the interest of both sides.
![Page 18: Trade EU – Turkey Customs Union “EU-TR Joint Consultative Committee " Brussels, 7 November 2013](https://reader035.vdocuments.site/reader035/viewer/2022062715/56649d985503460f94a83413/html5/thumbnails/18.jpg)
TradeTrade
Thank you for your attention