REFORMING AND RENEGOTIATING THE EU-TURKEY CUSTOMS UNION

The EU-Turkey Customs Union of 1995 has been economically beneficial for both parties, and its revamping could go a long way towards improving the relationship between Brussels and Ankara, despite the numerous obstacles present. In this article, the authors argue that in its current form, the Customs Union no longer meets the requirements of a 21st century trade agreement. Its modernization should include the signing of a free trade agreement covering agriculture, services, public procurement, investment protection, dispute settlement, and sustainable development. While difficult to achieve for Turkey these are necessary steps if the country wants to remain a competitive player in the world economy and increase its exports and FDI inflows.