Turkey to lose $5B annually if not included in TTIP agreement
Turkish Weekly | 6 February 2015
Turkey to lose $5B annually if not included in TTIP agreement
Not being a EU member excludes Turkey from talks.
Turkey stands to lose roughly $5 billion per year in direct losses alone if it is not included in a final free trade agreement between the EU and U.S., Turkey’s minister for EU Affairs said Thursday.
Volkan Bozkir told a gathering at the German Marshall Fund in Washington that Turkey “cannot afford the damage that would be caused” to its economy, stemming not only from direct losses, but also from increased unemployment and other economic fallout.
The eighth round of Transatlantic Trade and Investment Partnership, or TTIP, negotiations are being held Feb. 2-6 in Brussels with more than 200 negotiators representing the United States and European Union as they attempt to broker a free trade agreement.
If successful, TTIP negotiators have the potential to integrate two of the world’s largest economies.
Turkey has been a party to a customs union with the EU since 1995, allowing goods into its borders. But becasue Turkey is not a EU member, it is excluded from the talks.
Turkish officials argue future free trade agreements signed by the EU with other countries, such as the U.S., would effectively open Turkey’s market to exports from these states. But it would effectively block Turkish exports from benefiting from tax advantages in those same states, should Ankara not be a party to the free trade deals negotiated by the EU.
Bozkir said negotiations should continue with an addition to the final TTIP agreement that it would include customs union members.
“That’s what we’re trying to explain, but if it’s not there then we can’t afford it, so we might have to think about some negative measures,” Bozkir said, adding that Turkey is seeking to upgrade its customs union agreement with the EU to include agriculture, services and public procurement.
The increased economic ties could boost the trade volume between the neighbors to $300 billion from $150 billion, and could provide relief from any negative fallout from the U.S.-EU free trade agreement, Bozkir said.
“If we can achieve to upgrade the customs union before the TTIP then we will have this article there so you won’t have any problems when signing the TTIP, but the problem is who will be faster? Turkey and the EU, or the EU and the U.S.?” he said.
On Cyprus, the minister said that the continued partition of the divided island is a “shame.”
“Turkey is ready to solve this problem. We will do whatever necessary,” he said.
