Turkey http://ec.europa.

eu/trade/policy/countries-andregions/countries/turkey/

The EU and Turkey are linked by a Customs Union agreement , which came in force on 31
December 1995.
Turkey has been a candidate country to join the European Union since 1999, and is a member of
the Euro-Mediterranean partnership.

Trade picture

The EU is Turkey's number one import and export partner while Turkey ranks 7th in the
EU's top import and 5th in export markets.

Turkey's main exports markets are the EU, Iraq, Russia, USA, United Arab Emirates and
Iran.

Turkey's exports to the EU are mostly machinery and transport equipment, followed by
manufactured goods.

Imports into Turkey come from the following key markets: the EU, Russia, China, USA, Iran
and South Korea.

EU exports to Turkey are dominated by machinery and transport material, chemical

products and manufactured goods.

EU-Turkey "trade in goods" statistics

Table
EU importsEU exportsBalance201120122013Years050100Billions

EU-Turkey "trade in services" statistics

Table
EU importsEU exportsBalance201020112012Years020-20Billions

Foreign direct investment

Table
Inward stocksOutward stocksBalance201201020304050607080

More statistics on Turkey

EU and Turkey

Turkey trading with the world

In addition to the Custom Union with the EU, Turkey has signed Free Trade Agreements with EFTA, Israel,
the former Yugoslav Republic of Macedonia, Croatia, Bosnia-Herzegovina, Tunisia, Morocco, the
Palestinian Authority, Syria, Egypt, Georgia, Albania, Montenegro, Serbia, Chile, Jordan and Lebanon.

A Customs Union came into force on 31 December 1995. The Customs Union covers all industrial
goods but does not address agriculture (except processed agricultural products), services or
public procurement. Bilateral trade concessions apply to 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.
Following the Commission's proposal on "extending and deepening" the Customs Union, in
November 1996 the Council agreed to negotiating guidelines on the liberalisation of services and
public procurement between the EU and Turkey. Negotiations were, however, suspended in 2002.

Turkey and Euromed

Turkey is member of the Euro-Mediterranean partnership (Euromed) and as such should conclude
free trade agreements with all other Mediterranean partners, with a view to the creation of a
Euro-Mediterranean free trade area.
The Euro-Mediterranean Partnership promotes economic integration and democratic reform
across 16 neighbours to the EUs south in North Africa and the Middle East. One important part of
this work is to achieve mutually satisfactory trading terms for the Euromed region's partners.
The Euro-Mediterranean Partnership is an essential component in the pursuit of greater economic
integration in the Mediterranean region.
More information on the Euro-Mediterranean partnership

Trading with Turkey

Rules and requirements for trading with Turkey

Importing into the EU from Turkey

EU trade defence measures on imports from Turkey

Exporting from the EU to Turkey

Export rules on food and plant health

Trade defence measures in force in Turkey

The EU is present on the ground in Turkey

Trade relations are part of the EU's overall political and economic relations with Turkey

Turkey is a member of the World Trade Organisation

Sustainable impact assessment of the Euro-Mediterranean Free Trade Area (EMFTA)

Turkey : Customs Unions and preferential arrangements

http://ec.europa.eu/taxation_customs/customs/customs_
duties/rules_origin/customs_unions/article_414_en.htm
a) General introduction
The final phase of the relations between the European Community (EC) and Turkey under the Ankara
Association Agreement 1963 was to achieve the EC-Turkey Customs Union. This final phase entered
into force on 31 December 1995.
The scope of this customs union, based on the status of goods in free circulation, is however limited to
industrial products and processed agricultural products. It does not cover:
- agricultural products, as defined in Annex I of the Amsterdam Treaty;
- coal and steel products
These two categories are subject only to preferential agreements based on their originating status.

b) Legal framework
Association and Customs Union
NOTICE: Where reference is made to general concepts such as "minimal operations", "drawback",
"bilateral cumulation", "territoriality" and "accounting segregation", the reader should see the
explanations given in Preferential origin, General aspects of Preferential origin, under Provisions
common to most preferential arrangements.
The Ankara Agreement of 12.09.1963 (OJ L 217, 29.12.1964) and its Additional Protocol of 23.11.1970
(OJ L 293, 29.12.1972) define the scope and content of the association relationship, while the final
phase of the customs union is defined in Decision 1/95of the Association Council of 22.12.1995 (OJ L
35, 13.02.1996).
Decision No 1/95 implies:

free movement (elimination of customs duties and quantitative restrictions) between the two parts of
the customs union for goods either wholly produced or put in free circulation after their importation
from third countries in either Turkey or the Union. The proof of this customs status of 'goods in free
circulation' is established by an A.TR. movement certificate. Special conditions are laid down for
processed agricultural products;

alignment of Turkey on Community common customs tariff, including preferential arrangements, and
harmonisation of commercial policy measures;

approximation of customs law, in particular through Decisions of the Customs Co-operation Committee
(e.g. Decision No 1/2001) and mutual assistance in customs matters;

approximation of other laws (intellectual property, competition, taxation, ...).

After the abrogation of Decision No 1/2001 of the EC-Turkey Customs Co-operation Committee of
28.03.2001 (OJ L 98, 7.04.2001), Decision No 1/2006
of the EC-Turkey Customs Co-operation
Committee of 26.07.2006 (OJ L 265 of 26.09.2006) resets out implementing customs provisions of
Decision No 1/95, applicable to trade in goods between the two parts of the customs union and with
third countries.

Preferential agreement on agricultural products

The EC-Turkey trade agreement for agricultural products (Annex I Amsterdam Treaty: see list of
products

concerned) results from Decision No 1/98

of the Association Council of 25.02.1998

(OJ L 86 of 20.03.1998) as last amended by Decision No 3/2006

of the EC-Turkey Association
Council of 19 December 2006, amending Protocol 3 on rules of origin.
Protocol No 3 related to rules of origin is in line with the pan-Euro-Mediterranean Protocol.

Preferential agreement on coal and steel

The trade arrangement for coal and steel products results from an Agreement of 25.07.1996 between
Turkey and the then still existing ECSC (OJ L 227, 7.09.1996). Those products are now covered by the
EC Treaty but remain outside of the scope of the customs union. Rules of origin are laid down in its
Protocol No 1, as amended lastly by Decision No 1/2009 of the ECSC-Turkey Joint Committee (OJ L 143,
06.06.2009).
Protocol No 1 related to rules of origin is in line with the pan-EuromMediterranean Protocol.

c) Customs Union and Pan-Euro-Mediterranean Cumulation

In the context of pan-Euro-Mediterranean cumulation, it may be necessary to determine the originating
status of goods, which are in free circulation in the Customs Union but will be exported or used in the
production of products to be exported to other countries belonging to the pan-Euro-Mediterranean
system of cumulation of origin. For that purpose, Decision No 1/2006
of the EC-Turkey Customs Cooperation Committee of 26.07.2006 (OJ L 265, 26.09.2006) abrogates Decision No 1/1999 of the ECTurkey Customs Co-operation Committee of 28.05.1999 (OJ L 204, 04.08.1999) and resets out the
provisions providing that a 'supplier's declaration' is furnished to the exporter and used by him as
supporting evidence to establish the proof of origin in the context of the preferential agreements with
other countries in the pan-Euro-Mediterranean system of cumulation.
Decision No 1/2006
also abrogates Decision No 1/2000 of the EC-Turkey Customs Co-operation
Committee of 25.07.2000 (OJ L 211, 22.08.2000) and resets out the provisions providing that goods
fulfilling the condition for free movement within the customs union but traded between the EU and
Turkey through other countries belonging to the pan-Euro-Mediterranean system of cumulation can
benefit from the customs union insofar as proofs of Community or Turkish origin are established in one
of the countries concerned.