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European Union–Turkey Customs Union

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A trade agreement (also known as trade pact ) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common trade agreements are of the preferential and free trade types, which are concluded in order to reduce (or eliminate) tariffs , quotas and other trade restrictions on items traded between the signatories.

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66-731: The European Union–Turkey Customs Union is a trade agreement between the European Union (EU) and Turkey . The agreement came into effect on 31 December 1995, following a 6 March 1995 decision of the European Community–Turkey Association Council to implement a customs union ( Turkish : Gümrük Birliği ) between the two parties. Goods may travel between the two entities without any customs restrictions. The Customs Union does not cover essential economic areas such as agriculture (to which bilateral trade concessions apply), services or public procurement . In 1996,

132-646: A 2020 study, the agreement boosted trade between the EU and Turkey. In manufacturing, there was a 55–65 per cent increase in EU‐Turkey trade compared with the Ankara Agreement. The customs union increased both imports and exports in Turkey, as well as its GDP per capita. Turkey's membership of the customs union is recognised as having played a significant part in its economy's transition from agrarian to industrial. As Turkey

198-534: A certain region. There are currently 205 agreements in force as of July 2007. Over 300 have been reported to the WTO. The number of FTA has increased significantly over the last decade. Between 1948 and 1994, the General Agreement on Tariffs and Trade (GATT), the predecessor to the WTO, received 124 notifications. Since 1995 over 300 trade agreements have been enacted. The WTO is further classifying these agreements in

264-606: A consensual decision among the 42 countries. These projects and initiatives focus on 6 sectors of activity, as mandated by the UfM Member States: The members of the Union of the Mediterranean are the following: Additionally, Libya is an observer state. The UfM has expressed a desire to grant Libya full membership, and Mohamed Abdelaziz , Libya's Foreign Minister from January 2013 to August 2014, once stated that his country

330-525: A country. The second type is a bilateral trade agreement , when signed by two parties, where each party may be a country (or other customs territory ), a trade bloc or an informal group of countries (or other customs territories). Both countries loosen their trade restrictions to help businesses, so that they can prosper better between the different countries. This definitely helps lower taxes and it helps them converse about their trade status. Usually, this revolves around subsided domestic industries. Mainly

396-432: A duplication of institutions, or institutions that would compete with EU, institutions that would cover part of the EU and part of the neighbourhood." Other criticisms of the proposal included concern about the relationship between the proposed UfM and the existing Euromediterranean Partnership (Barcelona Process), which might reduce the effectiveness of EU policies in the region and allow the southern countries to play on

462-535: A final judgment can be made. Bishara Khader argues that this ambitious European project towards its Mediterranean neighbours has to be understood in a context of optimism. On the one hand, the European Community was undergoing important changes due to the reunification of Germany after the fall of the Berlin Wall in 1989 and the beginning of the adhesion negotiations of Eastern and Central European countries. On

528-718: A free trade area was established between Turkey and the European Union for products covered by the European Coal and Steel Community . Decision 1/98 of the Association Council covers trade in agricultural products. In addition to providing for a common external tariff for the products covered, the Customs Union foresees that Turkey is to align to the acquis communautaire in several essential internal market areas, notably with regard to industrial standards. According to

594-585: A geographical area. These countries often have similar histories, demographics and economic goals. The North American Free Trade Agreement (NAFTA) was established on January 1, 1989, between the United States, Canada, and Mexico. This agreement was designed to reduce tariff barriers in North America. The Eurasian Economic Union (EAEU) was established in 2015 and currently consists of five member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. It

660-506: A new phase Euro-Mediterranean Partnership with new members and an improved institutional architecture which aimed to "enhance multilateral relations, increase co-ownership of the process, set governance on the basis of equal footing and translate it into concrete projects, more visible to citizens. Now is the time to inject a new and continuing momentum into the Barcelona Process. More engagement and new catalysts are now needed to translate

726-567: A round negotiations to revive the process. A proposal to establish a "Mediterranean Union", which would consist principally of Mediterranean states, was part of the election campaign of Nicolas Sarkozy during the French presidential election campaign in 2007. During the campaign, Sarkozy said that the Mediterranean Union would be modelled on the European Union with a shared judicial area and common institutions. Sarkozy saw Turkish membership of

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792-657: Is "open" to joining. The Arab League also participates in UfM meetings. The Euro-Mediterranean Partnership, also known as the Barcelona Process, was created in 1995 as a result of the Conference of Euro-Mediterranean Ministers of Foreign Affairs held in Barcelona on 27 and 28 November under the Spanish presidency of the EU. The founding act of the Partnership in 1995 and Final Declaration of

858-473: Is a set of goals designed to lead to a free trade area in the Mediterranean Basin by 2010. The agenda of the Barcelona Process is: The Barcelona Process comprises three "baskets", in EU jargon, or strands: The Euro-Mediterranean free trade area (EU-MEFTA) is based on the Barcelona Process and European Neighbourhood Policy . The Agadir Agreement of 2004 is seen as its first building block. At

924-470: Is criticized by some, as the agreement itself does not provide any political or economic powers to Turkey in the European Union while granting some to the Union towards Turkey; thus it is compared to the capitulations of the Ottoman Empire . Trade agreement The logic of formal trade agreements is that they outline what is agreed upon and specify the punishments for deviation from the rules set in

990-658: Is designed to foster economic integration among its member states and promote economic growth in the region. The Association of Southeast Asian Nations (ASEAN) was formed in 1967 between the countries of Indonesia, Malaysia, the Philippines, Singapore, and Thailand. It was established to promote political partnership and maintain economic stability throughout the region. There are a variety of trade agreements; with some being quite complex ( European Union ), while others are less intensive ( North American Free Trade Agreement ). The resulting level of economic integration depends on

1056-519: Is in a customs union with the EU, it has to adjust its tariffs and duties to match those of the EU. However, the free trade agreements (FTAs) signed by the EU do not extend to Turkey, so the EU's FTA partners can export to Turkey tariff-free, while maintaining tariffs on Turkish goods, unless they also conclude a separate FTA agreement with Turkey. During the negotiation of the Transatlantic Trade and Investment Partnership (TTIP), Turkey raised

1122-536: Is settled on, it becomes a very powerful agreement. The larger the GDP of the signatories, the greater the impact on other global trade relationships. The largest multilateral trade agreement is the North American Free Trade Agreement, involving the United States, Canada, and Mexico. These are between countries in a certain area. The most powerful ones include a few countries that are near each other in

1188-662: The Association Agreements , the Code of Conduct on Countering Terrorism and the establishment of the Anna Lindh Foundation for the Dialogue between Cultures . In 2006 the first proposals for improving the Partnership's efficiency, visibility and co-ownership arouse, such as establishing a co-presidency system and a permanent secretariat or nominating a "Mr./Ms. Med." As of 2007 , on the initiative of France, States embark on

1254-479: The Barcelona process . German chancellor Angela Merkel said the UfM risked splitting and threatening the core of the EU. In particular she objected to the potential use of EU funds to fund a project which was only to include a small number of EU member states. When Slovenia took the EU presidency at the beginning of 2008, the then Slovenian Prime Minister Janez Janša added to the criticism by saying: "We do not need

1320-746: The Copenhagen political criteria. On this basis, the European Council decided to start accession negotiations with Turkey on 3 October 2005. Since then, no significant progress has been made towards membership nor is there evidence of political will to do so. In December 2016, the European Commission released an assessment proposing to update and modernize the agreement which includes services and public procurement. The report concluded with two options; Enhanced Commercial Framework (ECF) or Deep and Comprehensive Free Trade Area (DCFTA). As of 2020 March,

1386-860: The Secretary-General of the Arab League ) and invited observers, such as the European Investment Bank , the Arab Maghreb Union , the Anna Lindh Foundation for the Dialogue between Cultures, the Economical and Social Committee or the Euromed Economical and Social Councils. According to the ISN , "Palestinian President Mahmoud Abbas and Turkish Prime Minister Recep Tayyip Erdoğan were

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1452-480: The acquis of Barcelona, the purpose of which is to promote "peace, stability and prosperity" throughout the region (Barcelona, 2). Therefore, the four chapters of cooperation developed in the framework of the Barcelona Process during thirteen years remain valid: The objective to establish a Free Trade Area in the Euro-Mediterranean region by 2010 (and beyond), first proposed at the 1995 Barcelona Conference,

1518-577: The 27 countries in attendance, and Solana, who represented Spain as its foreign minister during the country's turn at the Presidency of the Council of the European Union , was credited with the diplomatic accomplishment. According to the 1995 Barcelona Declaration, the aim of the initiative was summed up as: "turning the Mediterranean basin into an area of dialogue, exchange and cooperation guaranteeing peace, stability and prosperity". The Declaration established

1584-822: The Association Agreements. Since 2004 the Mediterranean Partners are also included in the European Neighbourhood Policy (ENP) and since 2007 are funded via the ENPI . As a result of the Euro-Mediterranean Partnership, the Euromed Heritage program was formed. This program has been active since 1998, and has been involved in programs to identify the cultural heritages of Mediterranean states, promote their preservation, and educate

1650-638: The Barcelona Euro-Mediterranean Ministerial Conference is called the Barcelona Declaration, which is often used to refer to the Process itself. The Partnership culminated in a series of attempts by European countries to articulate their relations with their North African and Middle Eastern neighbours: the global Mediterranean policy (1972–1992) and the renovated Mediterranean policy (1992–1995). Javier Solana opened

1716-608: The Barcelona Process escalated after the celebration of the 10th Anniversary of the Euro-Mediterranean Summit in Barcelona in 2005. First, the absence of Heads of State and Government from the Southern Mediterranean countries (with the exception of the Palestinian and Turkish ones) heavily contrasted with the attendance of the 27 European Union's Heads of State and Government. Second, the lack of consensus to define

1782-403: The Barcelona Process since its very beginnings, like the Spanish politician Josep Borrell , expressed their disappointment about the Euro-Mediterranean Partnership and its incapacity to deliver results. Critiques from Southern Mediterranean countries blamed the Partnership's failure on Europe's lack of interest towards the Mediterranean in favour of its Eastern neighbourhood; whereas experts from

1848-541: The Council hadn't adapted either of the proposals. Since 2015, the Turkish government has had several meetings to assess updating the agreement. Turkey is also a member of the Euro-Mediterranean partnership and as such is interested in concluding free trade agreements with all other Mediterranean partners, with a view to the creation of a Euro-Mediterranean free trade area , originally aimed for by 2010. The agreement

1914-555: The European Union. The EU enlargement changed the configuration of the Barcelona Process from "15+12" to "27+10". Albania and Mauritania joined the Barcelona Process in 2007, raising the number of participants to 39. The 10th anniversary Euromediterranean summit was held in Barcelona on 27–28 November 2005. Full members of the Barcelona Process were: Moreover, the Barcelona Process included 6 countries and institutions participating as permanent observers ( Libya , Mauritania ,

1980-563: The Mediterranean Union as an alternative to membership of the European Union, which he opposes, and as a forum for dialogue between Israel and its Arab Neighbours. Once elected, President Sarkozy invited all heads of state and government of the Mediterranean region to a meeting in June 2008 in Paris, with a view to laying the basis of a Mediterranean Union. The Mediterranean Union was enthusiastically supported by Egypt and Israel. Turkey strongly opposed

2046-407: The Mediterranean, and would be built upon the existing Barcelona process. Turkey also agreed to take part in the project following a guarantee from France that it was no longer intended as an alternative to EU membership. The proposed creation of common institutions, and a Mediterranean Investment, which was to have been modelled on the European Investment Bank , was also dropped. In consequence

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2112-650: The Mediterranean. For many, the political context surrounding the 2005 summit – the stagnation of the Middle East Peace Process, the US-led war on Iraq , the lack of democratisation in Arab countries, and the war on terror 's negative effects on freedoms and human rights, among others—proved for many the inefficiency of the Barcelona Process for fulfilling its objectives of peace, stability and prosperity. Given these circumstances, even politicians that had been engaged with

2178-524: The Ministers decided to shorten the initiative's name to simply the "Union for the Mediterranean". This meeting concluded with a new joint declaration, which completed the Paris Declaration by defining the organisational structure and the principles on which the UfM would be run. A rotating co-presidency was set up, held jointly by one EUmember country and one Mediterranean partner. France and Egypt were

2244-458: The North accused Southern countries of only being interested on "their own bi-lateral relationship with the EU" while downplaying multilateral policies. However, many European Union diplomats have defended the validity of the Barcelona Process' framework by arguing that the Euro-Mediterranean Partnership was the only forum that gathered Israelis and Arabs on equal footing ), and identifying as successes

2310-639: The agreement. Trade agreements therefore make misunderstandings less likely, and create confidence on both sides that cheating will be punished; this increases the likelihood of long-term cooperation. An international organization, such as the IMF , can further incentivize cooperation by monitoring compliance with agreements and reporting third countries of the violations. Monitoring by international agencies may be needed to detect non-tariff barriers , which are disguised attempts at creating trade barriers. Trade pacts are frequently politically contentious, as they might pit

2376-460: The conference by saying that they were brought together to straighten out the "clash of civilizations" and misunderstandings that there had been between them, and that it "was auspicious" that they had convened on the 900th anniversary of the First Crusade . He described the conference as a process to foster cultural and economic unity in the Mediterranean region. The Barcelona Treaty was drawn up by

2442-577: The decision on Turkish membership even more. During those years the European Community had also become reluctant to consider Turkey's application. At the Helsinki summit in December 1999 Turkey was given the status of a candidate country. At the end of 2004, the European Commission has issued a report with positive recommendations to the European Council , indicating the degree of compliance by Turkey of

2508-436: The end of February of that year, France's minister for European affairs, Jean-Pierre Jouyet , stated that "there is no Mediterranean Union" but rather a "Union for the Mediterranean" that would only be "completing and enriching" to existing EU structures and policy in the region. Following a meeting with German Chancellor Angela Merkel it was agreed that the project would include all EU member states , not just those bordering

2574-415: The first countries to hold this co-presidency. The presence of the Arab League at all meetings is written into the rules. A secretariat with a separate legal status and its own statutes was created. Its headquarters were established in Barcelona. The fact that the Union for the Mediterranean is launched as a new phase of the Euro-Mediterranean Partnership means that the Union accepts and commits to maintain

2640-548: The following types: Lists: Barcelona Process The Union for the Mediterranean ( UfM ; French : Union pour la Méditerranée , Arabic : الاتحاد من أجل المتوسط Al-Ittiḥād min ajl al-Mutawasseṭ ) is an intergovernmental organization of 43 member states from Europe and the Mediterranean Basin : the 27 EU member states (including those not on the Mediterranean) and 16 Mediterranean partner countries from North Africa , Western Asia and Southern Europe . It

2706-634: The highest level. According to the Paris Declaration: The first summit was held in Paris in July 2008. The second summit should have taken place in a non-EU country in July 2010 but the Euro-Mediterranean countries agreed to hold the summit in Barcelona on 7 June 2010, under the Spanish presidency of the EU , instead. However, on 20 May the Egyptian and French co-presidency along with Spain decided to postpone

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2772-546: The idea and originally refused to attend the Paris conference until it was assured that membership of the Mediterranean Union was not being proposed as an alternative to membership of the EU. Among EU member states, the proposal was supported by Italy, Spain, and Greece. However the European Commission and Germany were more cautious about the project. The European Commission saying that while initiatives promoting regional co-operation were good, it would be better to build them upon existing structures, notable among them being

2838-399: The industries fall under automotive, oil, or food industries. A trade agreement signed between more than two sides (typically neighboring or in the same region) is classified as multilateral . These face the most obstacles- when negotiating substance, and for implementation. The more countries that are involved, the harder it is to reach mutual satisfaction. Once this type of trade agreement

2904-433: The most innovative aspects of the Partnership, covering at the same time the political, economic and cultural fields (regional co-operation). Regional co-operation has a considerable strategic impact as it deals with problems that are common to many Mediterranean Partners while it emphasises the national complementarities. The multilateral dimension supports and complements the bilateral actions and dialogue taking place under

2970-419: The negative externalities of trade liberalization. There are three different types of trade agreements. The first is unilateral trade agreement, this is what happens when a country wants certain restrictions to be enforced but no other countries want them to be imposed. This also allows countries to decrease the amount of trade restrictions . That is also something that does not happen often and could impair

3036-525: The new Union for the Mediterranean would consist of regular meeting of the entire EU with the non-member partner states, and would be backed by two co-presidents and a secretariat. At the Paris Summit for the Mediterranean (13 July 2008), the 43 Heads of State and Government from the Euro-Mediterranean region decided to launch the Barcelona Process: Union for the Mediterranean. It was presented as

3102-655: The objectives of the Barcelona Declaration into tangible results." The Paris summit was considered a diplomatic success for Nicolas Sarkozy. The French president had managed to gather in Paris all the Heads of State and Government from the 43 Euro-Mediterranean countries, with the exception of the kings of Morocco and Jordan . At the Euro-Mediterranean Conference of Foreign Affairs held in Marseilles in November 2008,

3168-532: The only leaders from the Mediterranean countries to attend, while those of Israel, Jordan, Syria, Lebanon, Algeria, Morocco, Tunisia, and Egypt were not present." [1] From the official web site, "The new realities and challenges of the 21st century make it necessary to update the Barcelona Declaration and create a new Action Plan (based on the good results of the Valencia Action Plan), encompassing four fundamental areas": Regional dialogue represents one of

3234-759: The other, the Arab–Israeli conflict appeared to be getting closer to achieving peace after the Madrid Conference (1991) and the Oslo Accords (1992). As well, Khader states that the Gulf War of 1991, the Algerian crisis (from 1992 onwards) and the rise of Islamic fundamentalism throughout the Arab world are also important factors in Europe's new relations with the Mediterranean countries based on security concerns. Criticism of

3300-530: The peoples in the riparian states. Other criticism is mainly based on the predominant role the European Union is playing. Normally it is the EU that is assessing the state of affairs, which leads to the impression that the North is dictating the South what to do. The question of an enhanced co-ownership of the process has repeatedly been brought up over the last years. Being a long-term process and much more complex than any other similar project, it may be many years before

3366-411: The peoples of partner countries about their cultural heritages. By some analysts, the process has been declared ineffective . The stalling of the Middle East Peace Process is having an impact on the Barcelona Process and is hindering progress especially in the first basket. The economic basket can be considered a success, and there have been more projects for the exchange on a cultural level and between

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3432-606: The principles of shared ownership, shared decision-making and shared responsibility between the two shores of the Mediterranean. Its main goal is to increase both north–south and South-South integration in the Mediterranean region, in order to support the countries' socioeconomic development and ensure stability in the region. The institution, through its course of actions, focuses on two main pillars: fostering human development and promoting sustainable development. To this end, it identifies and supports regional projects and initiatives of different sizes, to which it gives its label, following

3498-426: The prospect of leaving the customs union over the economic contraction it would suffer as American goods would enter Turkey tariff-free and Turkish goods would continue to face American tariffs. The EU and Turkey have been in negotiations for amending the customs union agreement to add Turkey to the EU's present and future FTAs. Turkey has been an associate member of the European Community (EC) since 1964, following

3564-498: The rest of the WTO members. All agreements concluded outside of the WTO framework (and granting additional benefits beyond the WTO MFN level, but applicable only between the signatories and not to the rest of the WTO members) are called preferential by the WTO. According to WTO rules, these agreements are subject to certain requirements such as notification to the WTO and general reciprocity (the preferences should apply equally to each of

3630-419: The rivalries to escape unpopular EU policies. There were similar economic concerns in the loss of civil society and similar human rights based policies. Duplication of policies from the EU's police and judicial area was a further worry. At the start of 2008, Sarkozy began to modify his plans for the Mediterranean Union due to widespread opposition from other EU member states and the European Commission. At

3696-410: The signatories of the agreement) where unilateral preferences (some of the signatories gain preferential access to the market of the other signatories, without lowering their own tariffs) are allowed only under exceptional circumstances and as temporary measure. The trade agreements called preferential by the WTO are also known as regional (RTA), despite not necessarily concluded by countries within

3762-421: The signing in 1963 of the Ankara Agreement (EEC-Turkey Association Agreement (1963)) with the EEC. Turkey applied for full membership on 14 April 1987. The decision to consider Turkey's application was deferred until 1993, because the European Community was in the process of becoming the even (politically and economically) tighter European Union . The fall of the Soviet Union and German reunification delayed

3828-486: The specific type of trade pacts and policies adopted by the trade bloc : Typically the benefits and obligations of the trade agreements apply only to their signatories. In the framework of the World Trade Organization , different agreement types are concluded (mostly during new member accessions), whose terms apply to all WTO members on the so-called most-favored basis (MFN), which means that beneficial terms agreed bilaterally with one trading partner will apply also to

3894-401: The summit, in a move which they described as being intended to give more time to the indirect talks between Israel and the Palestinian Authority that had started that month. In contrast, the Spanish media blamed the postponement on the Arab threat to boycott the summit if Avigdor Lieberman , Israel's Minister of Foreign Affairs, attended the Foreign Affairs conference prior to the summit. At

3960-402: The term "terrorism" prevented the endorsement of a final declaration. The Palestinian Authority , Syria and Algeria argued that resistance movements against foreign occupation should not be included in this definition. Nevertheless, a code of conduct on countering terrorism and a five-year work program were approved at Barcelona summit of 2005. both of which are still valid under the Union for

4026-437: The three main objectives of the Partnership, called "baskets" (i.e., strands or facets): The European Union stated the intention of the partnership was "to strengthen its relations with the countries in the Mashreq and Maghreb regions". Both Ehud Barak and Yasser Arafat had high praises for Solana's coordination of the Barcelona Process. The Barcelona Process, developed after the Conference in successive annual meetings,

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4092-456: The time of its creation, the Euro-Mediterranean Partnership comprised 27 member countries: 15 from the European Union and 12 Mediterranean countries (Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco , Palestine , Syria, Tunisia , and Turkey). As a result of the European Union's enlargements of 2004 and 2007 the number of EU member states grew up to 27, and two of the Mediterranean partner countries—Cyprus and Malta —became part of

4158-430: The time of the Paris summit, France—which was in charge of the EU presidency—and Egypt held the co-presidency. Since then, France had been signing agreements with the different rotator presidencies of the EU (the Czech Republic, Sweden and Spain) in order to maintain the co-presidency for alongside Egypt. The renewal of the co-presidency was supposed to happen on the second Union for the Mediterranean Summit. However, due to

4224-795: The winners and losers of an agreement against each other. Aside from their provisions on reducing tariffs, contentious issues in modern free trade agreements may revolve around regulatory harmonization on issues such as intellectual property regulations, labour rights, and environmental and safety regulations. Increasing efficiency and economic gains through free trade is a common goal. The anti-globalization movement opposes trade agreements almost by definition, although some groups normally allied within that movement, such as leftist parties, might support fair trade or safe trade provisions that moderate real and perceived ill effects of globalization . In response to criticism, free trade agreements have increasingly over time come with measures that seek to reduce

4290-443: Was also endorsed by the Paris Summit of 2008. In addition to these four chapters of cooperation, the 43 Ministers of Foreign Affairs gathered in Marseilles in November 2008 identified six concrete projects that target specific needs of the Euro-Mediterranean regions and that will enhance the visibility of the Partnership: A summit of heads of state and government is intended to be held every two years to foster political dialogue at

4356-430: Was founded on 13 July 2008 at the Paris Summit for the Mediterranean, with an aim of reinforcing the Euro-Mediterranean Partnership (Euromed) that was set up in 1995 as the Barcelona Process . Its general secretariat is located in Barcelona, Catalonia , Spain . The union has the aim of promoting stability and integration throughout the Mediterranean region. It is a forum for discussing regional strategic issues, based on

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