On January 1st 1996 , the Customs Union between the European Union and Turkey came into effect, thereby creating the closest economic and political relationship between the EU and any non-member country.
Essentially the Customs Union gives Turkey improved access to the group of countries previously known as the Common Market . It guarantees the free circulation of industrial goods and processed agricultural products . Customs duties and charges have been abolished and quantitative restrictions such as quotas are prohibited . The Customs Union involves harmonisation of Turkey 's commercial and competition policies including intellectual property laws with those of the European Union and it extends most of the EU's trade and competition rules to the Turkish economy.
The chief characteristic of the Customs Union is that goods will move freely between the EU and Turkey without being subject to customs duties or quantitative restrictions; it covers all aspects of trade and commercial policy to ensure there is a "level playing field" for Turkish and European firms . The main features of this Decision are:
the elimination of customs duties, quantitative restrictions and measures of equivalent effect on trade in industrial goods, including processed agricultural products, between Turkey and the EU.
the adoption by Turkey of the EU's Common External Tariff in its trade with third countries.
the adoption by Turkey of measures equivalent to the EU's common commercial policy.
progressive alignment of tariffs by Turkey in line with the EU's preferential trading arrangements with certain third countries.
the adoption by Turkey of customs provisions in line with those of the EC.
agreed competition rules and the alignment by Turkey of its legislation in this area with that of the EC.
the adoption by Turkey of legislation in the field of intellectual property protection to secure a level of protection equivalent to that in the EC.
the abolition by the EC of Voluntary Restraint Arrangements in trade in textiles with Turkey .
the formation of an EC/Turkey Customs Union Joint Committee and the adoption of other institutional arrangements to enable Turkey to be properly informed of, and formally consulted about policy formulation in the EC on matters which affect the Customs Union.
During the Association Council meeting, a Resolution was also adopted in accompanying areas which provides for the intensification of cooperation between the European Union and Turkey in the fields which are not covered by the Customs Union ie . industrial cooperation, Trans-European networks, cooperation on energy, transport, telecommunications, agriculture, environment, science, statistics, matters relating to justice and home affairs, consumer protection, cultural cooperation, information and communication.
Upon entry into force of the Customs Union Decision, Turkey cut all duties and equivalent charges on imports of industrial goods from members of the EU to zero . Furthermore, Turkey harmonised its tariffs and equivalent charges on the import of industrial goods from "third countries" with the Common External Tariff of the EU, and will progressively adopt EU commercial policy and preferential tariff policies within 5 years . For certain specifically identified "sensitive" products Turkey will maintain rates of protection above those specified in the Common Customs Tariff for imports originating in third countries for up to five years . These products include mainly ceramic products, motor vehicles and footwear.
Harmonisation work so far with the EU's commercial policy includes monitoring and safeguarding measures on imports both from the EU and third countries, the management of quantitative restrictions and tariff quotas and the prevention of dumped and subsidised imports.
Turkey has adopted EU rules and legislation on competition . Subsidies through State resources in any form whatsoever which distort or threaten to distort competition are banned . However assistance to promote economic development in Turkey 's less developed regions and assistance intended to promote cultural and heritage conservation and which does not adversely affect competition will be allowed . On the other hand, Turkey will progressively adjust any state monopoly of a commercial character so as to ensure that no discrimination exists in the conditions under which goods are produced or marketed between nationals of EU member countries and Turkey .
Turkey has harmonised its laws with EU legislation eliminating technical barriers to trade . There is now effective cooperation between Turkey and the EU in the fields of standardisation , calibration, quality, accreditation, testing and certification . Turkey has also harmonised its legislation on intellectual, industrial and commercial property to EU standards and has implemented laws covering consumer protection, and the protection of competition . Both sides are banned from using internal taxes as indirect protection mechanisms and from using tax rebates as export subsidies.
With the impacts of the EU's concessions on our country, Turkey 's rank in the Community's total imports rose from 40th in 1980 12th in 1996 with a share of 1.8% in 1996 . Similarly, Turkey 's rank in the Community's total exports rose from 26th in 1980 to 7th in 1996 with a share of 2.9% . A 95% of mutual trade has been realised in the scope of concessional regime.
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