The EU-Turkey Customs Union has been in place since 1995 and has been a significant factor in promoting trade, investment and economic growth between the EU and Turkey. However, discussions on updating the agreement have been ongoing for years. With the changing global economic landscape and geopolitical factors, there is an urgent need for an updated trade agreement between the EU and Turkey.
One of the main reasons for updating the agreement is the severe impact of the COVID-19 pandemic on global trade. Both the EU and Turkey have been severely affected by the pandemic, with disruptions to supply chains, reduced demand, and declines in trade volumes. An updated EU-Turkey trade agreement could help in mitigating these effects and promote recovery.
Another factor that highlights the urgency for an updated trade agreement is the increased competition from other countries, such as China, Russia, and the United States. The EU and Turkey need to work together to enhance their competitiveness in the global market and take advantage of emerging opportunities.
The EU and Turkey have already made some progress in the discussions on the updated agreement, with the main focus being on increasing trade in goods and services, improving market access, and enhancing regulatory cooperation. Additionally, the EU and Turkey have initiated a High-Level Economic Dialogue to promote further economic cooperation between their respective business communities.
One of the most significant challenges in the negotiations is the issue of a level playing field, particularly in the area of state aid. The EU requires that Turkey aligns with the EU’s state aid rules and regulations, which could be a contentious issue. However, an understanding on this matter could lead to better cooperation between the EU and Turkey and benefit both parties.
In conclusion, an updated EU-Turkey trade agreement is essential for promoting economic growth, increasing trade opportunities, and enhancing competitiveness in the global market. It is now up to the EU and Turkey to work together towards achieving a mutually beneficial agreement that takes into account the changing economic and geopolitical realities.
