Turkey and the TTIP

Turkey and the TTIP

The Transatlantic Trade and Investment Partnership, a free trade deal between the EU common market and the US, is expected to be concluded by next year. The staggering proportions of the deal (US-EU trade accounts for one third of the world total) ensure that it will have a decisive impact on global commerce.

Yet some countries – those which will not be part of the TTIP – are worried that the deal may in fact end up costing their economies in both trade and investment with the world’s largest economy and trade bloc. Turkey’s Deputy Prime Minister, Ali Babacan, has stated that the trade pact could result in 2.5 percent decline in the country’s GDP – equivalent to approximately $20 billion.

Moreover, Turkey formed a customs union with the EU nearly two decades ago. An integral part of this agreement was that Turkey would not be allowed hold bilateral negotiations with other states unless the EU had done so first. Once the US concludes an FTA with the EU, they will have relatively unencumbered access to the Turkish market as a result of the EU’s customs union with Turkey. On the other hand, because Turkey lacks any sort of independent trade arrangement with the US, Turkish exports to the US may potentially be subject to all manner of protectionist measures.

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(Wikimedia Commons image courtesy of KLMircea)

About the Author:

Sebastian Andrei is NABATAEANS’ editor for EU - Middle East Trade and Political Relations. He completed his undergraduate studies at the University of Vienna, where he majored in journalism with minors in political science as well as business and economics. Sebastian is responsible for reporting on the European Union’s external trade relations. He also writes about economic development and investment opportunities in Europe as well as about policy changes which affect the EU common market.

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