COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 15.07.1997 
COM(97) 394 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
on the further development of relations with Turkey 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
on the further development of relations with Turkey 
Introduction 
1. On 6 March 1995, the EU/Turkey Association Council took a decision on the 
implementation of the final phase of the customs union and adopted a resolution 
on the development of co-operation between the EU and Turkey in various 
fields, The Community also issued a declaration concerning the resumption of 
financial co-operation with Turkey. At the same time, the EU agreed that 
accession negotiations with Cyprus would start six months after the conclusion 
of the inter-governmental conference taking account of the results of the 
conference. 
On 24 March 1997, on the occasion of its informal meeting at Apeldoorn, the 
Council invited the Commission to prepare a Communication on the future 
development of relations between the EU and Turkey, against the background of 
the customs union that took effect on 31 December 1995. This Communication 
is a response to that invitation. It reflects the position of the Association Council 
on 29 April 1997 reconfirming Turkey's eligibility for EU membership and the 
fact that Turkey will be judged by the same objective standards and criteria as 
other applicants. The initiatives put forward in the present communication take 
this position fully into account. 
2. Recent political and economic developments in relations with Turkey are 
reviewed in chapter 2 of the Agenda 2000 report. The present Communication 
focuses on proposals for developing EU-Turkey relations beyond the customs 
union. The customs union marked a major step forward in relations between the 
EU and Turkey and is working satisfactorily. It provides a sound basis for the 
further development of relations. 
The way forward 
Given Turkey's status as a country eligible for EU membership, as confirmed 
by the Union at the Association Council on 29 April 1997, and as a close partner 
of the EU through the customs union and an active member of the Euro-
Mediterranean Partnership, the EU should continue to support Turkey's efforts 
tc resolve its problems and to pursue integration with the EU. The Association 
Agreement and the customs union provide the foundations for building an 
increasingly close political and economic relationship. In this process the EU 
attaches particular importance to Turkey's progress in pursuing démocratisation 
and the protection of human rights; the establishment of good neighbourly 
relations between Greece and Turkey; respect for the principles of international 
law; and the achievement of a just and lasting settlement in Cyprus. 
/ 
4. Against this background, the Commission believes that the EU should pursue a 
broadly based policy for strengthening relations between the EU and Turkey. 
This paper contains a number of proposals designed to take the relationship 
forward. Several of them will require funding from the Community budget, at 
least in their initial phases. Unless funding is made available most of these 
proposals cannot be implemented. The Commission considers that the special 
financial Regulation designed to accompany the customs union should be 
adopted as a matter of priority so that Turkey can adapt its industrial sector to 
the new competitive situation created by the Customs Union and improve its 
infrastructure linkage with the EU as well as to reduce the difference between its 
economy and that of the Community. The Commission also notes that MEDÀ is 
available for financial co-operation with Turkey and trusts that the conditions 
will be established for the full use of this instrument. 
5. These specific proposals cover the following areas: 
- consolidation of the Customs Union 
- services 
- telecommunications and information society 
- agriculture 
- human rights and humanitarian issues 
- re-opening of macroeconomic dialogue 
- industrial co-operation and investment 
- co-operation on the environment 
- co-operation on consumer policy 
- regional and cross-border co-operation 
- participation in Community programmes 
- co-operation injustice and home affairs issues 
Consolidation of the Customs Union 
This could be achieved by introducing a programme to support harmonisation of 
industrial legislation (standards, conformity assessment and quality policy, 
competition), starting negotiations on public procurement, speeding up full 
harmonisation of customs and commercial policies and consulting Turkey more 
in those areas of direct relevance to the customs union. This should be backed 
by substantial technical and financial assistance to improve the competitiveness 
of Turkey's industry, with the aim of enabling Turkey to integrate fully into the 
single market as far as the free movement of goods is concerned. The customs 
union should be extended to include services and to continue moves already 
made towards free movement of agricultural products. 
7. The process of consolidation could include: 
- technical assistance and close administrative co-operation with 
Turkish administrations and institutions (the undersecretariat for 
foreign trade, customs, treasury, other ministries) in order to 
strengthen controls and improve structures to ensure the effective 
operation of the customs union; 
- technical assistance to help reform the legal/ commercial framework 
with a view to creating a more investment friendly environment. This 
would serve to stimulate both domestic and foreign investment; 
- Turkish participation in the pan-European rules of origin system for 
industrial products, the transit convention and the convention on the 
single administrative document, to ensure that all our trading 
arrangements are compatible; 
- the improvement of consultation mechanisms with Turkey in areas in 
which it accepts the acquis communautaire (commercial policy, 
negotiation of trade agreements, competition policy, intellectual 
property, environment legislation, standards and industrial 
legislation); 
- these actions should be complemented by the completion by Turkey's 
negotiations of trade agreements with the countries of central and 
eastern Europe and the Mediterranean. The Commission and 
Member States should be willing to provide technical and political 
support to help conclude this process. 
Services 
8. Liberalisation of services would bring mutual benefits and involve a broader 
spectrum of Turkish society in the country's modernisation and in the 
development of closer ties with the EU. 
9. In the services sector, article V of GATS allows for a preferential agreement on 
the bilateral liberalisation of services between two members of the WTO 
provided that liberalisation covers substantially all sectors and covers all aspects 
of trade in services. Given their respective starting points the liberalisation of 
services would require a greater effort from Turkey than from the EU but would 
make an important contribution to the further reform and modernisation of the 
economy. Careful analysis will be required to identify the specific additional 
benefits that further liberalisation in services can bring and to ensure full 
compliance with GATS. 
- It is proposed to begin negotiations with a view to the progressive 
liberalisation of services between the EU and Turkey. 
Telecommunications and information society 
10. Turkey is currently engaged in the modernisation of advanced communications 
and information systems. There is still a need to adopt legislation to conform to 
Turkey's GATT commitments in the area of telecommunications: 
- The EU could help with the preparation of legislation which would be 
harmonised with that of the EU. The integration of Turkey into the 
information society should be favoured by associating Turkey with the 
trans-European telecommunications networks and Turkish 
researchers, laboratories, firms and other bodies with R&D activities 
related to the Information Society. 
Agriculture 
11. The EU and Turkey are committed through their customs union agreement to 
moving towards the free movement of agricultural products. Turkey is 
committed to adjusting its agriculture policy in such a way as to adopt the 
common agricultural policy measures required to establish freedom of 
movement of agricultural products. Little progress has so far been made in this 
respect. A trade agreement providing for reciprocal concessions for agricultural 
products has been initialled. Further liberalisation of trade in agricultural goods 
is attractive from an economic point of view, given in particular the rapid 
economic growth in Turkey and the advantages that preference for EU goods 
would bring. Both sides recognise that an ambitious liberalisation policy would 
need to overcome major difficulties, including the disparity in Turkish and EU 
agricultural structures. 
12. In order to help achieve this goal it is proposed to: 
- provide technical and financial assistance to help restructure Turkish 
agriculture, which is unable to exploit its full potential, and to help 
Turkey adjust its agricultural policy, as outlined above; 
- encourage Turkey's transposition of the acquis communautaire taking 
into account the specific features of Turkish agricultural structures. 
This transposition should cover agreed elements of areas suck as 
policy on the organisation of markets, rural policy, technical 
standards, plant and animal health rules and other veterinary 
questions. 
- the negotiation of further reciprocal improvements in market access 
should continue. 
Human rights and humanitarian issues 
13. Extensive co-operation on human rights should be established with regard to the 
development of civil society and the rule of law in Turkey. 
14. This should take two forms: 
- the broadest possible co-operation with European and, more 
importantly, Turkish NGOs working for improvements in human 
rights, humanitarian assistance, freedom of expression and in the 
development of civil society in Turkey, as well as with those reporting 
on the human rights situation; 
- co-operation with the Turkish Government in support of its efforts to 
ensure that the relevant international conventions are abided by, to 
elaborate and implement appropriate internal legislation and to train 
public servants, including the police in areas related to the respect 
for human rights. 
- co-operation between the EU and Turkey on humanitarian issues 
should be stepped up. In this context, the Turkish authorities should 
be further encouraged to facilitate the provision of humanitarian 
assistance by NGOs in neighbouring regions. 
Reopening of macroeconomic dialogue 
15. Re-opening of dialogue with Turkey on macroeconomic issues would help with 
the implementation of sound macroeconomic policy and structural reforms in 
areas such as social security, agriculture, privatisation and restructuring, 
infrastructure, information society, energy and human resources development. 
These reforms should be supported by technical and financial assistance. 
Industrial co-operation and investment 
16. In order to boost economic growth and income levels Turkey is working to 
increase its competitiveness in a number of sectors. The promotion of industrial 
co-operation and investment will support such efforts. 
- It is proposed to further develop co-operation in areas such as product 
quality and innovation, including in the field of information 
technologies. Additional measures are needed to help companies, and 
in particular small and medium sized enterprises, notably with access 
to existing instruments for information and business co-operation so 
that they can meet the challenges of the customs union and evolving 
trading conditions in the Mediterranean and Black Sea regions. 
Support for private sector development should encourage sustainable 
and balanced development, modernisation and the promotion of 
investment. 
Co-operation on the Environment 
17. Progress is also needed in the field of the environment, in particular with regard 
to the achievement of sustainable development and the integration of 
environmental considerations into other economic sectors. 
- It is proposed to reinforce co-operation on the environment to enhance 
the prospects for achieving sustainable economic growth and social 
development, having due regard to the quality of the environment, the 
protection of human health and the rational use of natural resources. 
Co-operation on Consumer Policy 
Consumer policy and the protection of consumer health are areas of increasing 
importance in EU-Turkey relations, particularly as the customs union opens up 
new opportunities for trade. 
- It is proposed to provide technical and financial assistance to the 
Turkish authorities for the creation of a system similar to the Rapid 
Exchange of Information System in operation in the EU. Tlie Turkish 
system could then be connected to the EU system as soon as 
appropriate decisions are taken in the Council. 
Regional and cross-border co-operation 
19. The further development of Black Sea co-operation will foster stability and 
prosperity in this region. In line with the approach taken in other regional 
initiatives, the Commission encourages regional and cross-border co-operation 
in the Black Sea area through the appropriate instruments, including support 
programmes for partner countries in the region. 
Participation in Community programmes 
20. The Commission has proposed that Turkey participate in Leonardo, Socrates 
and Youth for Europe III and this is now being considered by the European 
Parliament and the Council. Turkish researchers, laboratories, firms and other 
bodies are entitled to participate in research projects under the 4th RTD 
Framework Programme. 
21. It is proposed that Turkey be invited to participate in other Community 
programmes with particular emphasis on youth, culture, education, training, 
research, SMEs, environment, customs, indirect taxation and the extension of 
trans-European networks. 
- A decision in principle on Turkey's participation in Community 
programmes could be included in an additional protocol to the 
Association Agreement. The conditions for participation would be 
negotiated individually for each programme. At least in the early 
years, part of Turkey's contribution could be covered by MED A 
financial assistance or by the special financial assistance Regulation 
once it has been adopted. 
Co-operation injustice and home affairs issues 
22. Consideration should be given to enhancing police and customs co-operation in 
the fight against drugs, organised crime and money laundering as well as in 
areas such as immigration and judicial co-operation in civil and criminal 
matters. 
- The Association Council resolution of October 1995 supplied an 
institutional framework for such co-operation. It provided for regular 
meetings at K4 level and regular meetings between Turkey, the 
Presidency in full association with the Commission, as well as regular 
ministerial meetings. 
- The Council could decide to authorise the financing of actions in the 
justice and home affairs area in the context of the programme of 
financial co-operation with Turkey. 
Conclusion 
23. The Commission considers that the Association Council's confirmation of 
Turkey's eligibility for EU membership and its statement that Turkey will be 
judged by the same objective standards and criteria as other applicants have 
given a new impetus to EU-Turkey relations. 
24. Further strengthening of EU-Turkey relations will depend on progress by Turkey 
in a number of fields. In the political field, démocratisation needs to be further 
pursued. There should be an improvement of relations between Greece and 
Turkey; respect for the principles of international law; and an effective 
programme to bring Turkish human rights standards up to internationally 
accepted levels. Human rights and the rule of law need to be respected, 
especially in the context of the fight against terrorism and the search for a non-
military solution to the problem Turkey is facing in the south east, which is still 
under a state of emergency. Moreover, Turkey should contribute actively to a 
just and lasting settlement of the Cyprus question in accordance with the relevant 
UN resolutions. 
25. Despite the remarkable dynamism of the Turkish private sector, there is a need 
for economic reform and a policy of stable public finances, prices and monetary 
policy to promote sustainable economic and employment growth. Continuing 
reform of the state sector and of agriculture is needed and the adaptation of the 
physical and social infrastructure of the country poses major financial and 
administrative challenges. 
26. In parallel with improvements in these areas, the initiatives suggested above can 
enable the EU and Turkey to achieve a higher degree of integration, to the 
benefit of all their citizens, by further developing the links established by the 
Association Agreement and the customs union. This will bring greater stability, 
security and prosperity to the EU and Turkey and assist Turkey in realising its 
European vocation. 
27. The Council is invited to approve the orientations set out in this communication. 
Financial Statement 
Not applicable at the present time 
Any initiatives based on the recommendations in this Communication will be 
financed from existing Community instruments, notably the special financial 
assistance for Turkey designed to accompany the customs union and MED A 
1 
Impact of the proposal on SME 
The proposals ho Ids .positiveimplication for SME, in that: 
• it will promote their involvement in exchanges and cooperation; 
• it will facilitate contact and exchange of information between SME on both sides. 
(0 

ISSN 0254-1475 
COM(97) 394 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-97-402-EN-C 
ISBN 92-78-23480-X 
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