The European Commission intends to make a formal proposal to the European Council in order to begin talks aiming to update the Customs Union Deal with Turkey that was signed in 1995, which will positively affect the mutual trade relations in important sectors such as the sectors of agriculture, services, and industry.
The ratification of modernizing the deal requires the approval of both the European Parliament and Council on the new formula resulting from the talks of the both parties.
The update will enable all the Turkish agricultural products to enter the EU market. Furthermore, the Turkish firms will be able to participate in tenders with EU companies.
In addition, thanks to the Customs Union update, companies in the EU will be also able to invest in Turkey and export goods to the EU market as well as third parties. In this regard, the trade volume between the both parties will increase by 50 %.
It is worth mentioning that Turkey is the EU's 5th largest economic partner with a trade volume amounts to 140 billion dollars a year. Moreover, two thirds of foreign investment in Turkey currently originates in the EU.