IMPACTS OF CUSTOMS UNION WITH THE EUROPEAN UNION TO THE TURKISH ECONOMY

Abstract

The commencement of official relations between the European Union (EU) and Turkey dates back to 1959ş when Turkey applied for association followng the establishment of the European Economic Community (EEC). The EEC Council of Ministers accepted the application, and the following the negotiations the Ankara Agreement estbalishing an association was signed in 1963. Having viewed the historical period, making a turbulent progressş Turkey-EU relations has started to evolve into a very different dimension with the sign of Customs Union (CU). Through the CU, Turkey and EU have removed all barriers in front of trade excluding agriculture areas and service. This study aims to assess impacts of CU on Turkish economy. The study analyses four distinct impacts that are foreign direct invetsment, employment, growth and foreign trade.

Keywords

• Customs Union, Turkish Economy, European Union

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