Source: EURLEX
Language: en
Format: md

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 EuroMediterranean 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 nonmilitary 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.

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###### **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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