“The US and Turkish presidents intend to increase the volume of trade. But when it comes to practical realities, the bureaucratic structures in both countries seem to be preventive [rather than constructive],” the professor explains. Describes the trade agreements in which this country is involved. Provides resources for U.S. companies to obtain information on the use of these agreements. This page lists the free trade agreements signed by Turkey. [1] In 1995, Turkey signed a customs union with the European Union for goods other than agricultural products and services. Since 2018, the EU has been Turkey`s main trading partner, accounting for 50% of its exports and 36% of its imports. [2] “If you ask me what is the only thing the U.S. and Turkey could do to improve the relationship, it would be a free trade agreement — not just the pursuit of more trade to reach $100 billion, but in fact the integration of economies through a free trade agreement,” Graham said Wednesday at a conference hosted by the U.S.-Turkish Business Council. “Although this has not happened in the past, Turkey and the United States could potentially increase their trade volume.
The disagreements between the US and China could create a good opportunity for Turkey to recognise this,” Virgil said. Article 16 of Decision No 1/95 of the Turkey-EC Association Council on the implementation of the final phase of the Customs Union provides, inter alia, for Turkey to take the necessary measures and negotiate agreements with the countries concerned on a mutually beneficial basis. “In terms of exports and manufacturing sectors, a free trade agreement with the United States will bring huge benefits to Turkey,” Virgil told TRT World. In 2018, Turkey`s trade volume with the United States was $20.5 billion, according to official U.S. estimates. Turkey`s Commerce Ministry hinted last year that Ankara wanted to increase its trade with Washington to $75 billion. “As a result of a free trade agreement between the United States and Turkey, if we increase our production capacity and diversify our products, China`s dominance in the African market could be broken,” Virgil said. In line with the global trend towards the negotiation of free trade agreements and its commitment to the customs union, Turkey negotiates and concludes free trade agreements with third countries in parallel with the EU. Together with the EU`s Common Customs Tariff, preferential trade regimes are the most important element of trade policy towards third countries. Like Graham, economists believe that a free trade agreement could serve the interests of both countries. “Trade relations have been negatively affected by US taxes on Turkish steel exports and other trade barriers due to political disagreements, which has led to mistrust between the two countries,” Virgil said.
The following agreements have been replaced by the customs union between the European Union and Turkey: “Resolving these disputes requires a recast in both Washington and Ankara towards a deeper appreciation of how a new spirit of strategic partnership could benefit both countries,” noted Bryza, the former diplomat who was at the center of a free trade agreement between the two countries in 2002. Turkey is a member of the Euro-Mediterranean Partnership (Euromed) and, as such, should conclude free trade agreements with all other Mediterranean partners with a view to creating a Euro-Mediterranean free trade area. In the same speech, Graham cited both issues as some obstacles to the implementation of a free trade agreement. “The way we do it is to overcome our differences. It cannot be through the use of military force,” the senator said. In today`s world, countries tend to participate in bilateral and regional free trade agreements because the World Trade Organization (WTO) has achieved a high level of liberalization, WTO rules are not sufficient under current conditions, and the multilateral trading system is ineffective in allowing better market access. As a result of this trend, about 400 free trade agreements are notified to the WTO. The Turkey-EU Customs Union has abolished customs duties, quantitative restrictions and measures having equivalent effect in trade in industrial goods in order to ensure the free movement of goods. Following the customs union, Turkey opened its single market to competition in the EU and third countries, while guaranteeing its exporters free access to the EU market. .