Türkiye-EU high-level Trade Dialogue discusses customs & visa issues

By News Centre

Minister of Trade Ömer Bolat spoke at the Business World Roundtable Meeting within the scope of the Turkiye-EU High Level Trade Dialogue. Bolat stated that the Customs Union between Turkiye and the European Union (EU) should be updated and developed in the face of the changing structure of international trade.

Minister of Trade Ömer Bolat spoke at the opening of the Business World Roundtable Meeting within the scope of the first Turkiye-EU High Level Trade Dialogue held at the EU Commission building in Brussels.

"This platform represents the cornerstone of our collective efforts to create a forward-looking vision for our economic partnership," said Bolat, adding that they are determined to overcome current challenges, seize new opportunities and ensure a prosperous future for both the EU and Turkiye.

"We have been working diligently to create a new and positive agenda between Turkiye and the EU since the second half of 2023," Bolat said.

Bolat stated that through determined and collaborative efforts, they have successfully developed a comprehensive roadmap designed to further deepen the comprehensive integration between Turkiye and the EU, and that EU Commission Vice President Valdis Dombrovskis has played a vital role in shaping and guiding this transformative process.

The Customs Union played an important role

Minister Bolat spoke about bilateral economic relations and the Customs Union as follows:

"The EU and Turkiye have always been important economic and commercial partners. With the establishment of the Customs Union between Turkiye and the EU in 1995, we have managed to establish this partnership on a strong contractual basis. Since then, the Customs Union has played an important role in the continuous development of trade relations through the progressive liberalization of trade and Turkiye's compliance with the EU acquis and trade policies. We have successfully built on our previous successes and increased our bilateral trade every year. As a result, in 2023, our bilateral trade reached an all-time high of $210 billion. By promoting uninterrupted trade and investment flows, the Customs Union has created significant value for the business communities in both regions, increasing their competitiveness in the global market."

"The Customs Union structure should be developed"
Minister Bolat made the following assessment: "Considering the changing landscape of international trade in the last 30 years, there are important areas where we can improve the structure of the Customs Union . "
Bolat, who drew attention to the importance of expanding the Customs Union to new areas such as services and digital trade during the update process, explained that cooperation in green and digital transformation should be deepened.

Structural flaws in the Customs Union

"It is a fact that the current structure of the Customs Union, which was initially designed as a temporary arrangement until Turkiye's full membership in the EU, has permanent structural flaws," Bolat said.

Bolat emphasized that the flaws in the Customs Union are the increasing inequalities between the parties' Free Trade Agreement networks, land quotas and cumbersome visa procedures that hinder the ability of business representatives to fully benefit from the Customs Union. "The implementation of transit quotas today leads to longer and more costly deliveries of Turkish products that should circulate freely in our Customs Union," he said.

Visa problem

Minister Bolat reminded that not only Turkish products were affected by this situation, but also products produced by EU companies in Turkiye faced the same obstacles, and said , "The bottlenecks in visa procedures not only disrupted the activities of the Turkish business world, but also caused serious uncertainties in the multinational business models of Europe, which has close commercial ties with the EU."

"Current problems limit the benefits obtained from the Customs Union," said Bolat, adding that the potential of trade and economic relations would increase with the deepening of the Customs Union.

Bolat pointed out that the world and international economy have reached a turning point recently, saying, "Many developments in the international arena have left economies around the world facing unprecedented risks and threats . "

Bolat stated that mutual tariff wars, fierce competition between the world's leading economic centers and military conflicts affecting many regions threaten the years-long economic globalization and liberalization process, and pointed out that in the current geopolitical context, countries around the world are taking protectionist measures and turning to trade barriers.

"Under these circumstances, we see the Customs Union as a compass that helps us chart the right course in our commercial and economic interactions, while also ensuring the continuation of the positive course of EU-Turkiye relations," said Bolat, adding that Turkey's strong economic structure and strategic location will play a key role in diversifying supply chains and increasing economic security.
Bolat stated that when the EU and Turkiye continue their close cooperation, they will better protect their economies from external shocks and be more robust against emerging economic threats. "My expectation is that the High Level Trade Dialogue between Turkey and the EU, as a new format to coordinate our efforts, will lead to the formation of such a forward-looking vision. I have no doubt that this close cooperation will also lead to the updating of our Customs Union and the deepening of Turkey-EU relations," he said.

"Producers and value chains are connected by the Customs Union"

"The Customs Union has beautifully connected producers and the value chain," said EU Commission Vice President Valdis Dombrovskis.

Emphasizing that bilateral trade relations between Turkiye and the EU are very strong, Dombrovskis said, "A new record was broken in bilateral trade in 2023 with 206 billion euros. Turkiye became the 5th largest trade partner of the EU."

Dombrovskis stated that the mutual trade in goods between Turkiye and the EU is balanced and the value chains are strongly interconnected.

Underlining that removing trade barriers and enriching trade relations will increase resilience, Dombrovskis said that today's dialogue is an important platform where various issues, such as removing trade barriers and determining different areas of cooperation will be discussed.