Customs hunchback of Turkey
Posted by meb at March 26th, 2007
Turkey had a foreign trade deficit of 279,8 billion USD since January 1st 1996, the date when the “Customs Union” agreement came into effect.
Ankara Chamber of Commerce (ATO) examined data from the Foreign Trade Secretariat, Turkish Customs, Turkish Statistical Institute and the official website of the EU “http://ec.europa.eu” and assessed effects of the “Customs Union” on Turkey which resulted in the “Customs Hunchback” report.
According to the report, Turkey has a foreign trade deficit of 279,8 billion USD since January 1st 1996, the date when the “Customs Union” agreement came into effect. This amount constitutes alone the 70,1 percent of Turkey’s total foreign trade deficit since the foundation of the Republic of Turkey.
In the last 11 years since the “Customs Union” came into effect, the amount of Turkey’s Foreign Trade deficit with the EU member countries reached 99,8 billion dollars.
Turkey closed the foreign trade with surplus only in 16 years of period of the 84 years since its foundation most of which were in Ataturk era, said the report.
Another danger posed by the Customs Union shows itself in the textiles sector according to the report. “Multilateral Textiles and Apparels” agreement signed under the World Trade Organization by more than 140 countries brings extra costs to Turkey.
While the textiles quotas were removed with the agrement in 2005, Turkey was regarded as a developed country and was forced to apply the highest customs discount to underdeveloped and developing third countries.
Turkey is entitled to apply the common Customs tariffs to third countries according to the “Customs Union” agreement.
While Turkey abode the EU regulations and had to remove the customs walls it can’t benefit from free trade laws signed by the EU and has to sign its own free trade agreements with these countries, the report reveals.
Chairman of ATO Sinan Aygün reminded the remarks of State Minister and Deputy PM Abdullatif Şener suggesting the “Customs Union” to be reconsidered and said “we have being drawing attention to the harms caused to the Turkish Economy by the Customs Union. When we voiced these, everyone withdrew from the table including the government. If Sener is sincere he will do whatever is necessary. Customs Union should be given place in the government’s agenda.”
source: The New Anatolian
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