Economic Implications for Turkey of a Customs Union with the European Union : A Quantitative Based Policy Analysis

Turkey and the European Union (eu) have agreed to implement a customs union. This means Turkey will eliminate its tariffs and levies on imports of manufactured products from the European Union. Turkey will also apply the eu's "common external tariff" on imports from third countries. Turkey will be obligated by 2001 to provide preferential access to its markets to all countries to which the eu grants such access. Since Turkey is both eliminating tariffs on eu imports and reducing tariffs on imports from third countries, it will become a rather open economy in nonagricultural sectors, with tariffs below 2 percent (zero for imports from the eu and slightly over an average 3 percent for thirdcountries). And since preferential access agreements with third countries will typically be reciprocal, Turkish exporters can expect improved access to those markets