Turkey aims to update Customs Union deal by early 2017

By Fatih Erkan Dogan

ANKARA (AA) - Turkey aims to finalize its update to the Customs Union agreement by the end of the first quarter of 2017, Economy Minister Nihat Zeybekci said on Thursday.

Speaking at a press conference in the Ankara Chamber of Industry, Zeybekci said a very important decision had been taken on Wednesday with the approval of EU commissioners to launch negotiations on an update to the Custom Union agreement that Turkey aims to officially finalize by the end of the first quarter of 2017 and put it into effect by the end of the year.

On Wednesday, the European Commission said: "The upgrade of the EU-Turkey trade relation forms an essential part of the efforts made by the EU and Turkey to deepen their relations in key areas of joint interest identified at the EU-Turkey summit of 29 November 2015 and in the EU-Turkey statement of 18 March 2016."

Zeybekci said: “This is a very uplifting and important decision. We were able to conduct trade [previously] only in industrial products with the EU, a market where we make 48.5 percent of our overall exports. We will now widen the scope to include also agricultural goods, services and public procurements.

“Secondly, we will be able to participate in a decision-making mechanism [in the Customs Union agreement].Thirdly, Turkey will become a party to new free trade agreements the EU signs with other economies,” he added.

Turkish officials have repeatedly criticized free trade agreements signed by the EU with other countries, such as the U.S., which would effectively open Turkey’s market to exports from such states, with no reciprocity.

Despite not being a member of EU, Turkey is a member of the Customs Union agreement since 1995.