Turkey- EU Customs Union

Turkey and the EU signed the Customs Union Agreement in 1995. The agreement allowed both sides to trade goods without any customs duties and tariffs. The agreement is beneficial for both sides. The trade volume has increased highly and The EU became Turkey's number one import and export partner. 

There are many benefits of the agreement for Turkey's side. The benefits could be listed as;

• Turkey has benefited from an “early” legislative alignment process before its accession negotiations started.
• Turkey is participating in the EU single market for goods.
• Turkey has been implementing an EU aligned anti-trust legislation for 10 years.
• Turkey has benefited from an almost EU aligned customs legislation for 10 years.
• Turkish exporters are experienced in manufacturing according to EU technical standards.
• Turkey has adopted and implemented many intellectual property rights.

Additionally, the agreement increases the foreign direct investments between the two sides. FDI is crucial for economies in order to acquire foreign currencies, job creations and cash flow. The chart which has been shown below, shows the increase of FDI between the EU and Turkey.

To sum up, the agreement benefits Turkey and the EU highly. Trading without tariff and duties encourage both sides to trade and make investments which helps the economies to grow.

References:

http://www.avrupa.info.tr/en/turkey-the-eu/customs-union.html?print=1

http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/turkey/