Erdoğan’s visit to USA and importance of FTA between 2 countries
Prime Minister ERDOGAN flew to the USA on Wedenesday 15th May, to meet with President OBAMA and conduct talks with other officials.
Erdogan has taken some top important files with him to discuss with Obama such as; The situation in Syria, prospects of an international intervention, trade agreement signed between the United States and the European Union and the negative burden it will bring to Turkey as well as a prospects of finding a remedy to it.
It is clear that if Turkey and the United States sign a free-trade agreement, it will help Turkey prevent its trade opportunities/capability from being blocked.
Because in accordance with the Customs Union Agreement signed between the EU countries and Turkey in 1996, Turkey is left out of the circuit in case EU signs a free trade agreement (FTA) signs with a 3 country. In other words, such third country can sell its goods to Turkey via EU without duty whereas Turkish goods have to pay duty at entrance to such third country.
Based on said agreement between EU and Turkey, while third countries can sell their goods duty-free to Turkey in compliance to the agreement they have signed with EU, Turkey cannot benefit from similar rights in case of exportation to such 3rd countries. Turkey has had to put up with this disadvantageous situation concerning its trade with countries such as Mexico, Algeria and South Africa, in specific which EU has signed FTAs, recently.
Actually, Turkey has been suffering this problem for about 18 years when the government at the time made a vital mistake by executing an agreement whereby it agreed that Turkey would not be a side of agreements EU would sign with third countries. Obviously and as would be expected such countries refuse to sign a FTA with Turkey despite all efforts of Turkey in which case the trade deficit between Turkey and these countries keeps increases, inevitably.
Turkey has every right for trying to waive the risk of experiencing similar problem with the USA which is planning to sign FTA with EU. Thus, PM Erdoğan is expected to focus on this problem as well, during his meeting with President Obama. Turkey would like to sign a FTA with the USA to prevent any possible financial loss it could incur due to the FTA that the USA is expected to sign with EU.
We also strongly believe that this is an unfair situation seen from Turkey’s point of view and if the USA does not display a positive approach which would help make up for this unfair practice, Turkey should be entitled to take all measures necessary to equalize the situation.
15.05.2013
Editor, BTT
