Communication from the Commission to the Council and the European Parliament on the further development of relations with Turkey
Date: 1997-07-15
Institutions: European Commission
Subjects: EU relations, Türkiye, cooperation policy, customs union

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 
Turkish  administrations  and  institutions 
foreign 
strengthen  controls  and  improve  structures 
operation  of the customs  union; 

trade,  customs, 

(the  undersecretariat 

co-operation  with 
for 
to 
to  ensure  the  effective 

in  order 

treasury,  other  ministries) 

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 
trading 
single  administrative  document, 
arrangements  are  compatible; 

that  all  our 

to  ensure 

it  accepts 

the  improvement  of  consultation  mechanisms  with  Turkey  in  areas  in 
(commercial  policy, 
which 
intellectual 
negotiation  of  trade  agreements,  competition  policy, 
property, 
industrial 
and 
legislation); 

the  acquis  communautaire 

environment 

legislation, 

standards 

these  actions  should  be  complemented  by  the  completion  by  Turkey's 
negotiations  of  trade  agreements  with  the  countries  of  central  and 
the  Mediterranean.  The  Commission  and 
eastern  Europe  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 
the 

in  the  country's  modernisation  and 

in 

spectrum  of  Turkish  society 
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 
liberalisation  of services  between  the EU  and  Turkey. 

to  begin  negotiations  with  a  view  to  the  progressive 

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 
Turkish 
researchers, laboratories, firms  and other bodies with R&D  activities 
related to the Information Society. 

telecommunications 

networks 

and 

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: 

- 

co-operation  with  European  and,  more 
the  broadest  possible 
importantly,  Turkish  NGOs  working  for 
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; 

improvements 

-  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 
the  provision  of  humanitarian 
be  further  encouraged 
assistance  by NGOs  in neighbouring  regions. 

to  facilitate 

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. 

- 

in 

including 

innovation, 

It  is proposed  to further  develop  co-operation  in areas  such  as  product 
quality  and 
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 

field  of 

the 

and  balanced  development,  modernisation  and 
investment. 

the  promotion  of 

Co-operation on the Environment 

17.  Progress is also needed in the field of the environment,  in particular with regard 
integration  of 

to  the  achievement  of  sustainable  development  and  the 
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. 

- 

to  provide 

technical  and  financial  assistance 

It  is  proposed 
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 
to  the  EU  system  as  soon  as 
appropriate  decisions  are  taken  in the  Council. 

then  be  connected 

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. 

in  principle  on  Turkey's  participation 
could  be  included 

-  A  decision 
in  Community 
the 
programmes 
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. 

in  an  additional  protocol 

to 

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 
the 
meetings  at  K4  level  and  regular  meetings  between  Turkey, 
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 

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