World Bulletin/News Desk
The Transatlantic Trade and Investment Partnership envisaged to be signed between the US and the EU is expected to be discussed during the US visit of Turkish Prime Minister Recep Tayyip Erdogan.
Sources in Ankara told Anadolu Agency Erdogan will bring the FTA issue to the agenda among other political topics in Washington.
The negotiations of the agreement which are to begin in June will result in the biggest free trade zone in the world.
Within scope of the Customs Union Agreement, it is feared that Turkey would face the risk of a 2.5 percent shrinkage in growth and not being able to compete with the cheap EU products unless Turkey and the US sign another agreement for trade. According to the Customs Union Agreement, for a product produced in Turkey and in free circulation between Turkey and the EU to enter a third country free of tax, Turkey needs to sign a separate agreement with this country.
Nonetheless, once products of third countries that have a free trade agreement (FTA) with the EU but not with Turkey are imported to the EU, they can enter Turkey free of tax. This situation emerges as an important factor discouraging such countries to sign a free trade agreement with Turkey when they can do so via the EU. Moreover, Turkey is not consulted in the process of determining countries to sign free trade agreement with.
US support to Turkey
While Turkey expressed its "concerns", other parties stated there shouldn't be any worry in regards to the matter.
US Secretary of State John Kerry in March stated that economic cooperation couldn't take place without Turkey and added, "Turkey needs to have a strong position in this structure."
Turkish Minister of Economy Zafer Caglayan had previously stated that the Transatlantic Trade and Investment Partnership to be signed between the US and the EU would result in unfair competition for Turkey.Last Mod: 14 Mayıs 2013, 13:21