The European Union (EU) and Turkey have had a long-standing trade relationship since 1963, when the two parties signed the Ankara Agreement. This agreement aimed to establish a customs union and promote trade between the two regions. Since then, Turkey has become an important trade partner for the EU, with the trade volume between the two regions reaching more than €140 billion in 2019.
In recent years, the trade relationship between the EU and Turkey has been impacted by various factors, including political tensions and economic challenges. The EU has raised concerns about Turkey`s human rights record and its actions in the Eastern Mediterranean. These issues have led to several trade disputes between the two regions, including the 2018 decision by the EU to impose tariffs on steel products from Turkey.
Despite these challenges, the EU and Turkey have continued to negotiate and update their trade agreements. In 2020, the EU and Turkey agreed to update their customs union agreement, which was signed in 1995. This update will modernize the agreement and deepen the economic integration between the EU and Turkey. It will also address some of the challenges facing the trade relationship, such as non-tariff barriers and regulatory alignment.
The update to the customs union agreement is expected to bring significant benefits to both the EU and Turkey. It will increase trade volumes and promote economic growth, which is particularly important given the economic challenges both regions are facing due to the COVID-19 pandemic. It will also provide a framework for closer cooperation on issues such as environmental protection, consumer protection, and intellectual property rights.
However, the update to the customs union agreement is not without its challenges. Some EU member states have expressed concerns about the human rights situation in Turkey and its actions in the Eastern Mediterranean. This has led to calls to suspend the update until these issues are resolved. Additionally, Turkey has called for a renegotiation of the agreement to address its concerns about the impact of the EU`s trade policies on its economy.
In conclusion, the trade relationship between the EU and Turkey is complex and multifaceted. Despite the challenges they face, the two regions have continued to negotiate and update their trade agreements, reflecting the importance of their economic ties. The update to the customs union agreement is a significant step forward, but it also highlights the need for ongoing cooperation and dialogue to address the challenges facing the trade relationship.