Solution:
Negotiating an upgrade to Turkey's customs
union, presents a number of features . Seven areas are
worth highlighting in particular after the impementaion of
Turkesy's Custome union:
- Compliance and
implementation: The EU will demand the introduction
of mechanisms and procedures to improve the European Commission’s
screening of Turkish legislative compliance with the EU
acquis, and require Turkey to implement changes in the
relevant EU rules and regulations. It will push for deadlines on
the notification of Turkish legislative measures to the Commission,
the requirement to translate from Turkish, and the creation of a
committee composed of Turkish and Commission officials to check its
compatibility with the acquis.
- Trade policy
influence: The Commission has noted Turkey’s
dissatisfaction with its lack of influence in EU trade policy
formulation, although it has suggested only modest proposals to
address this, including ‘better consideration [of Turkey] in
consultative mechanisms, and participation in the work of some of
the committees/groups related to the CU functioning’. For its part,
it firmly demands that a DSM ‘should’ as opposed to ‘could’ be
established, a key EU objective.
- Rebalancing FTA
asymmetry: The Commission understands the
importance of ending the asymmetrical application of its FTAs to
Turkey. A potential solution is for the EU to insist that the third
country grant equivalent access to Turkish products until an FTA is
negotiated with that country. Alternatively, the EU could calibrate
implementation with the entry into force of a parallel FTA with
Turkey.
- Transportation and
transit: The EU will not eliminate the bureaucratic
procedures faced by Turkish hauliers at the border with Bulgaria
and Greece, since this privilege is linked to the free movement of
people. The EU is not ready to grant Turkish citizens the right to
free movement, which means Turkish drivers will continue to face
border delays. However, the EU may consider mechanisms and
procedures to improve dialogue and coordination with the Commission
and member states’ customs officials to facilitate the
transportation of goods at the border and throughout the EU.
Concerning internal restrictions in the form of motor vehicle taxes
and transportation quotas/transit permits, the CJEU’s
groundbreaking ruling in the 2017 ‘Istanbul Logisitk Limited vs.
Hungarian Administrative Authorities’ case may lead to their
eventual elimination.
-
Agriculture:
There is recognition in Turkey that agriculture will be the most
challenging sector in the CU upgrade negotiations.Through the
Common Agricultural Policy (CAP), the EU provides extensive
agriculture subsidies to producers, and has been historically
unwilling to open up domestic agriculture markets. Unsurprisingly,
it imposes strict time limits and quotas on tariff-free access as
well as tariff quotas on fruit, vegetables and dairy produce from
Turkey.
-
Dispute settlement
mechanism: It is reasonable to assume that the EU will
also insist on a DSM modelled on the DCFTA with Ukraine, which is a
streamlined version of the WTO’s ‘dispute settlement
understanding’. If consultation between the parties does not end
the dispute, a three-person expert arbitration panel selected by
the parties or by lot from an agreed list will issue a ruling
within four months. It will be binding on the party in breach and,
in the event of partial or non-compliance, the complainant is
allowed to impose proportionate sanctions.
-
Visa liberalization
for Turkish citizens: Turkey and the EU have isolated visa
liberalization for Turkish citizens to the Schengen borderless zone
into a separate track from the CU revamp. On 16 March 2016, as part
of the deal to curb migration into mainland Europe, the EU and
Turkey agreed that the fulfilment of the visa liberalization
roadmap will be accelerated vis-à-vis all participating member
states with a view to lifting the visa requirements for Turkish
citizens at the latest by the end of June 2016, provided that all
the benchmarks have been met.
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