Brussels, 12/01/2015 (Agence Europe) - Meetings in Brussels on 9 January between European Commissioners Johannes Hahn (Neighbourhood and Enlargement) and Cecilia Malmström (Trade) and Turkey's Minister for the Economy Nihat Zeybekci focused on the recent political developments in Turkey, bilateral relations (especially in trade), and the improvement of the customs union.
Zeybecki spoke to the European Commission about Turkey's concerns regarding the EU-led negotiations for a series of bilateral free trade agreements - particularly for a transatlantic trade and investment partnership agreement (TTIP) with the US. Hahn and Malmström stated that Turkey's concerns were understood in Brussels.
Hahn, Malmström and Zeybecki also exchanged views on the modernisation of the customs union between the EU and Turkey (in force since 31 December 1995), and on extending the scope of application (which is currently limited just to goods, including processed products, and which does not include agricultural products, services and investment). The two parties committed to resuming their initial contacts (which have been suspended since 2002) so as to reach a common understanding of key elements for an upgrading of the customs union. In addition to a common external tariff for the products covered, the customs union provides for Turkey becoming aligned with the EU acquis communautaire in several key areas of the internal market - especially on industrial standards.
On Friday, Zeybecki also informed the Commission of Turkey's interest in contributing to the €315 billion European investment plan for 2015-17 - especially in energy projects. Turkey is a key EU partner in the southern gas corridor project for channelling gas from the Caspian region and central Asia to the European market.
Other areas of bilateral economic relations were also addressed on Friday - including the Commission's project for establishing high level contacts between the European and Turkish business communities (with a new round of discussions for EU-Turkey business, a mission for growth and a high level macro-economic dialogue).
In 2013 (last figures available), the EU was by far Turkey's biggest market, absorbing 41.5% of Turkey's exports in goods, and it was also Turkey's main source of imports (36.7% of the total goods imported into Turkey). The EU's exports to Turkey the same year stood at €77.8 billion, and its imports from Turkey stood at €50.4 billion - in other words there was a surplus balance of €27.4 billion for the EU. In 2012, the EU exported €9.8 billion in services to Turkey, and imported them for €14.2 billion - in other words a deficit balance of -€4.4 billion for the EU. In 2012, the EU's foreign direct investment (fdi) stock in Turkey stood at €73.1 billion while Turkey's fdi stock in the EU stood at €11.9 billion. (EH)