THE Customs Union that took effect as of January 1st, 1996, is a major step towards Turkey's full integration with the European Union. As far as the internal market is concerned, the EU has thus enlarged to include Turkey. From now on, in the context of the EU's internal market and Common Trade Policy, one should talk of the "sixteen" rather than the "fifteen".
According to the rules for implementing the final phase of the Customs Union, agreed on March 6th, 1995, by the Turkey EU Association Council, free movement is ensured for goods other than agricultural products for which special provisions are also set out in line with the EU common procedures. Import and export customs duties and charges having equivalent effect are wholly abolished. As far as the protection of intellectual, industrial and commercial property rights is concerned, Turkey has brought its legislation to the same level with that of the EU.
The CU has significant economic and political benefits both for the EU countries and Turkey. For the EU, the economic benefits are manifold.
First of all, the CU opens and consolidates the Turkish market in a privileged manner for the EU producers. All tariff and non tariff barriers are already eliminated. EU exporters thus earn preferential and unhindered access to this young, dynamic market of 65 million consumers.
Turkey is already the country with which the EU has the largest trade surplus. With the completion of the CU, the annual trade volume between the parties will grow from US$26 billion to US$40 billion by the year 2000. EU firms are expected to increase their sales and thus their market share in Turkey which will also have a positive impact on employment in the EU member countries.
Turkey is harmonising her economic legislation with that of the Community. As a result, the conditions for doing business in Turkey are becoming substantially similar to those in the EU.
The EU companies gain a new competitive edge provided that they take advantage of the investment and production opportunities Turkey offers. They will also be able to use Turkey as a joint investment and re export base for the Middle East, the Black Sea region, and Central Asia.
Improved relations in trade will also affect the transportation sector positively and create employment opportunities in EU countries.
It goes without saying that the CU will also contribute positively to the Turkish economy by systemising and stabilising its development. The alignment with the EU's autonomous and preferential trade regulations will facilitate our expansion to the countries with which previously we had a very small volume of trade.
The Tanaiste and Minister for Foreign Affairs, Mr Spring, noting that the trade between Turkey and Ireland has grown steadily in recent years with a balance in Ireland's favour, has underlined that the abolition of customs duties and other trade restrictions in the context of CU should have a positive impact on the further development of Irish exports to Turkey.
There are also political benefits of the CU for both sides. Turkey and the EU are bound by the Ankara Agreement, of which Article 28 gives Turkey the possibility of access to the Community. Furthermore, in its reply to Turkey's application of 1987 for full membership, the EU has unequivocally acknowledged her eligibility in this regard.
Turkey's integration will impart to Europe a new and broader horizon. An EU that includes Turkey will be healthier, stronger and more dynamic.