EU-Turkey Customs Union and trade relations

Turkey is advocating for significant reforms to the existing Customs Union with the European Union to better reflect modern economic realities. Officials, including Nail Olpak, President of the Foreign Economic Relations Board (DEİK), have stated that the current structure, which has been in place for over three decades, no longer meets contemporary needs. Proposed updates include expanding the framework to cover services, e-commerce, agriculture, and public procurement.

In addition to reform efforts, Turkish Trade Minister Ömer Bolat has called for Turkey to be included in the EU’s ‘Made in Europe’ industrial plan. Bolat warned that excluding Turkey from this initiative could negatively affect production, employment, and trade for both sides, noting that Turkey is already an integral part of European supply chains.

The current Customs Union, established under Decision 1/95 and effective since 1996, abolished customs duties and quotas for industrial products and certain processed agricultural products. This economic relationship exists alongside a broader political context in which EU accession negotiations have been frozen since June 2018 due to concerns regarding the rule of law, human rights, and democracy.