08.04.2014 İstanbul
Speaking at the Turkey – EU Customs Union Assessment Report Launch meeting, TOBB President M. Rifat Hisarcıklıoğlu stated that the World Bank Report vindicates the arguments of the Turkish private sector in regards to the problems they have voiced for years, “The Turkish private sector should not be subject to unfair competition from within or without the Customs Union and Turkey should be made party to FTA negotiations with third parties including the USA simultaneously.”
Attending the meeting on Turkey - EU Customs Union Assessment Report
which took place in İstanbul were TOBB President M. Rifat Hisarcıklıoğlu, EU –
Turkey Delegation Assistant Representative Bela Szambodi, World Bank Turkey
Director Martin Raiser, Ministry of Economy EU General Director Murat Yapıcı
and many representatives from the business world.
Giving the opening speech of the meeting, TOBB President M. Rifat
Hisarcıklıoğlu stated that Turkey had applied to join the European Union and
the Customs Union 18 years ago, in 1996, and provided information in regards to
the process to this day. Stating that the scope of the Customs Union is decided
upon by the Partners Council, Hisarcıklıoğlu said:
“The Customs Union is a part of the Turkey – EU Partnership Relations.
It is the end of the “Transition Period” in as per the Ankara Agreement. It is
the final phase. However, due to certain reason the final phase has never been
able to be finalized. In addition, the Customs Union, initially planned to be
only a phase of the membership process has lasted almost 20 years. The EU has a
high set of standards in regards to products. These standards prohibit entry
into the market.
At the beginning of the procedures, the EU caused concern for Turkish
manufacturers. There were many doomsayers. However, in time we saw that the
structural changes and the competitive mentality brought on by the Customs
Union have played an important role in Turkey’s transformation. The Customs
Union is a milestone in Turkey’s financial development, an important one
following the free market reforms enacted by the late Özal after 1980. Our
relations with the EU and the Customs Union has been instrumental in the
diversification of the industrial production structure; in ensuring production
quality and continuity; in the facilitation of the rules of competition; in
increasing competitive power. Thus, the integration of Turkey’s economy to that
of the world has been achieved. With the Customs Union, a significant increase
in Turkey’s industrial goods exports has occurred.”
- The other side of the medallion
TOBB President Hisarcıklıoğlu stated that there is also another side to
this medallion; that there have been problems which have arisen in the
implementation of the Customs Union.
Stating that, in the last 20 years, there have been great changes in the
economies of Turkey and the European Union as well as the world in general,
Hisarcıklıoğlu said, “The economic foundations on which we established the
Customs Union have changed. The first of these changes took place in the
structure of the European Union. At the time of the signing of the Customs
Union agreement with the EU, the number of EU states was 15. Turkey signed a
customs union agreement with 15 developed and prosperous EU countries. With the
fall of the Soviet Union, the European Union was joined by 13 new members of a
similar income and production level with Turkey.
The number of countries wanting to have a share of the developed
European market increased.
While our new partners move freely within the EU, we are obstructed by
land transportation quotas. While the competition travels with an EU passport,
Turkish businessmen have to deal with visas.
We are not a part of the decision making process of the EU, even in an
advisory capacity while the new EU members are enjoying the advantages of defining
policy.”
- Customs Union is a tool to
bring Turkish and EU economies closer
“The timing of the report is very important as the EU is preparing for a
change. This year, the Parliament and the Commission will be handed off. I
believe that the new staff, with a new game plan, can bring new momentum to
Turkey – EU relations. That is why we, as the Turkish private sector, find this
report to be of the utmost importance. There was a great need present. I am
convinced that this report will form a great basis for discussion in the new
term.
We view the Customs Union as a tool to bring the economies of Turkey and
the EU closer together, aid in integration, not just a set of trade
regulations.
For this reason, it is imperative that the Customs Union operates
properly. The World Bank report vindicates the complaints of the Turkish
private sector.
As emphasized in the World Bank report, the consultative mechanisms
between the EU and Turkey should be strengthened and diversified. Turkey and
the Turkish private sector should not be subjected to unfair competition from
within the Customs Union as well as from without.
FTAs signed with third parties, including the USA, should be paired with
simultaneous negotiations with Turkey. Transit transportation should be
prioritized and land transportation should be made easier. A problem resolution
center should be established to address issues with the Turkey – EU Customs Union.
We are prepared to offer our expertise from our experiences from arbitration
duties as TOBB and ICC. In closing, it is imperative that visas are waived. In
this regard, I would like to congratulate the Berlin Legislative Court for the
decision made on March 26th, 2014; the businessman Osman Nuri Korca,
by presenting the case has proven Turkey’s claims once again.
We must consider from this day forth how to establish a fair Customs
Union. In this regard, I believe that the World Bank’s report will provide a
good basis for discussion on the issue.”
- Other speakers
World Bank Turkey Director Martin Raiser assessed the Turkey – European
Union Review Report and underlined the fact that the agreement needs a new
package of preventative measures need to be enacted.
EU Turkey Delegation Vice President Bela Szombati stressed the need for
new momentum for the Customs Union. In regards to the World Bank’s report,
Szombati stated that the report utilizes the unfulfilled potential behind the
Customs Union.
World Bank Senior Economist Kamer Karakurum Özdemir presented the EU –
Turkey Customs Union Review Report.
European Commission Expansion Department Candidate Countries Director
Alexandra Cas Granje stated that they are aware of the asymmetrical regulations
in the Customs Union and went on to stated that the report would not be shelved
but kept in mind.
Stating that more consistent and stronger relations are needed between
Turkey and the EU, Granje emphasized the need for cooperation in addressing
issues.