TURKEY s FTA POLICY and FTA with USA

Transcription

1 MINISTRY OF ECONOMY TURKEY s FTA POLICY and FTA with USA Murat YAPICI Director General for EU Affairs 6 May

2 Content I. Turkey-EU Relations II. Turkey s FTA Policy III. EU-US TTIP IV. Turkey-US FTA Ministry of Economy 2

3 I. Turkey-European Union Relations Ministry of Economy 3

4 Chronology I MINISTRY OF ECONOMY 31 July 1959: Application for membership to the EEC 12 September 1963: Association (Ankara) Agreement was signed 23 November 1970: Additional Protocol for the establishment of the Customs Union signed 14 April 1987: Application for full membership to the EC 1 Jan 1996: Establishment of Customs Union with the Association Council Decision 1/95 Ministry of Economy 4

5 Chronology II MINISTRY OF ECONOMY December 1999: The decision on the candidate status of Turkey in Helsinki Summit 3 October 2005: Accession Negotiations formally opened under 35 chapters As of May 2013: Negotiations in 12 chapters are open and 1 chapter is provisionally closed (Science and Technology, Enterprise and Industrial Policy, Financial Control, Statistics, Consumer and Health Protection, Trans-European Networks, Company Law, Intellectual Property Law, Free Movement of Capital, Information Society and Media, Taxation, Environment, Food Safety-Veterinary-Phytosanitary Policy) Ministry of Economy 5

6 Turkey-EU Economic Relations TURKEY S EXPORTS (2012) TURKEY S İMPORTS (2012) EU FTA COUNTRIES OTHERS EU FTA COUNTRIES OTHERS 5 In 2012, Turkey is in 5th place in EU s exports with %4.7 and in 7th place in EU s imports with %2,8. In the last decade, European FDIs constitutes around 68% of the total FDIs in Turkey with a value of 73 billion $. In 2012, 14.9 million European tourists visited Turkey meaning 54.4% of the all tourists coming to Turkey. Ministry of Economy 6

7 II. Turkey s FTA Policy Ministry of Economy 7

8 Legal Aspects GATT Article XXIV: Turkey and the EU should apply the same duties to the third countries as a principle of the Customs Union under WTO system. Decision 1/95 Articles 16 and 54: The Customs Union Decision requires Turkey to align its commercial policy with the EU s Common Commercial Policy which includes, inter alia, preferential trade regimes (FTAs) of the EU. Decision 1/95 Article 56: Turkey and the EU are jointly responsible for proper functioning of the Customs Union (1/95 Article 56). Ministry of Economy 8

9 Economic Aspects FTAs are important instruments of Turkey s trade policy which targets increasing trade and investment with its partners through establishing more liberal and foreseeable trade order for the benefit of economic operators at both ends. Existing FTAs focus mainly trade in goods New area: Services and investment Negotiates deep and comprehensive FTAs Ministry of Economy 9

10 Export Diversification Following the economic crisis in the EU, which is the main trade partner of Turkey, the importance of the diversification of export markets has increased. Currently, Turkey has concluded 19 FTAs. They represent; million population - GDP of 3.5 trillion $ trillion $ import market Turkey s exports increased by 550% with FTA partners, while total exports increased by 449% in period. In 2012, the share of FTA partners is 9,6% in exports and 4,5% in imports. Ministry of Economy 10

11 Turkey s FTAs Europe Middle East Africa Asia Latin America North America Concluded EFTA Israel Tunusia Georgia Chile Macedonia Palestine Morocco S.Korea Croatia Syria Mauritius Bosnia Herz. Albania Montenegro Egypt Jordan Lebanon Serbia Ongoing Negotiations Moldova Libya Cameroon Malaysia Colombia Ukraine GCC D.R. Congo Equador Kosovo Gana MERCOSUR Faroe Islands Attempted/Planned Negotiations Negotiations Seychelles Algeria Japan Mexico USA South Africa India Peru Canada ACP Countries Indonesia Central America Vietnam Ministry of Economy 11

12 New Generation FTAs Existing FTAs New Generation FTAs Trade in Goods Market Access Non-Tariff Barriers SPS and TBT Trade Remedies Trade Facilitation Rules of Origin Cooperation Services Investments Government Procurement Competition Sustainable Development Intellectual Property Rights Dispute Settlement Institutional Provisions Ministry of Economy 12

13 III. EU-US Transatlantic Trade and Investment Partnership (TTIP) Ministry of Economy 13

14 EU-US TTIP Negotiations On 13 February 2013, EU and US leaders declared to start FTA negotiations. On 12 March 2013 European Commission and on 20 March 2013 US Government started their internal approval process in order to start FTA negotiations. Official declaration to initiate FTA negotiations is expected to be announced on Transatlantic Summit on June First round of negotiations is expected to be initiated on September Ministry of Economy 14

15 Content of TTIP Full liberalisation of tariffs in industrial and agricultural goods Harmonisation in all regulatory areas especially in technical barriers to trade Solution of problems in agriculture Intellectual Property Rights Advanced initiatives in services, investments and public procurements. Customs and trade facilitation Competition policy Raw material and energy Small and medium sized enterprises Common rules regulating global trade Ministry of Economy 15

16 Impact Assessment of TTIP According to CEPR 2013 analysis; Major part (%80) of the economic returns of TTIP Agreement will be obtained with reduction of non-tariff barriers, For the EU 119 billion Euro and for the US 95 billion Euro economic return in a year, 100 billion Euro increse in World GDP, As of 2027, %0,5 increase in EU GDP and %0,4 increase in US GDP is expected. Ministry of Economy 16

17 IV. Turkey-US FTA Ministry of Economy 17

18 Bilateral Trade and Investment In 2012, Turkey s exports to and imports from the US are 5,6 and 14,1 billlion dollars. Main Items in Turkey s exports to the US: motor vehicles, iron-steel products, tobacco, marble. Main Items in Turkey s imports from the US: scrap iron, aircraft, coal, cotton, pharmaceutical products. Direct investments: Between 2002 and 2012, Turkey s total investment in the US and the US s total investment in Turkey are 1,1 and 8,5 billion dollars respectively. Ministry of Economy 18

19 Turkey-EU Foreign Trade (Billion $) ,0 12,3 16,0 14, ,2 8,2 4,3 3,2 8,6 3,8 4,6 5, Export Import 2013/3 : Exports 1.4 billion $, down 5,7%; Imports 3.5 billion $, down 1,4% Ministry of Economy 19

20 Main Export Items (Million $) Ministry of Economy 20

21 Main Import Items (Million $) Ministry of Economy 21

22 Customs Tariff Rates (WTO Classification) Ministry of Economy 22

23 US Free Trade Agreements Countries Signature Date Enforcement date Israel 22 April August 1985 Canada 17 December January 1994 Mexico 17 December January 1994 Jordan 24 October December 2001 Singapore 6 May January 2004 Chile 6 June January 2004 Australia 18 May January 2005 Morocco 15 June January 2006 Costa Rica 5 August January 2009 Dominic Republic 5 August March 2007 El Salvador 5 August March 2006 Guatemala 5 August July 2006 Honduras 5 August April 2006 Nicaragua 5 August April 2006 Bahrain 14 September August 2006 Umman 19 January January 2009 Peru 12 April February 2009 Colombia 22 November May 2012 Panama 28 June October 2012 Korea 30 June March 2012 Ministry of Economy 23

24 Motivations for a Prospective Turkey-US FTA Turkey-EU Customs Union Model Partnership and Strategic Framework for Economic and Trade Cooperation Establishing legally binding institutional framework for bilateral trade Increasing the trade volume Elimination of non-tariff barriers (TBT, SPS) Diversification of the product range in bilateral trade More balanced trade structure Boosting investments and the number of Turkish-American joint ventures More liberal environment for trade in services Ministry of Economy 24

25 High Level Initiatives for Turkey-US FTA Letter from Prime Minister of Turkey ERDOGAN to US President OBAMA Letter from Minister of Economy CAGLAYAN to Trade Commissioner De GUCHT Meetings of President, Prime Minister and Minister of Foreign Affairs of Turkey with US Foreign Affairs Minister Meeting of Minister of Foreign Affairs of Turkey with High Level Representative of EU ASHTON Initiatives of Ministry of Economy to European Parliament Members Ministry of Economy 25

26 Action Plan for a Parallel Turkey-US FTA Aim: Establish a joint study group and start scoping exercise Initiatives before the US at the governmental level Initiatives before the EU at the governmental level Lobbying efforts of the Turkish NGOs Initiatives in Turkey - Impact assessment study - Meetings of the ministers with their EU and US counterparts - Raising awareness among the business circles Ministry of Economy 26

27 Possible Scope of Turkey-US FTA (US Perspective) Full tariff liberalization in industrial and agricultural trade Elimination of agricultural subsidies Harmonisation of SPS measures (GMO, importation of livestock and meat) Liberalization in services Liberalization in investment Government procurement Harmonisation in technical regulations and standarts (GMP) Harmonisation in state aid rules Harmonisation in Intellectual Property Rights Ministry of Economy 27

28 THANK YOU MURAT YAPICI Director General of the EU Affairs 6 May 2013 Ministry of Economy 28