European Union–Turkey Customs Union in the context of "European Single Market"

⭐ In the context of the European Single Market, the European Union–Turkey Customs Union is considered…

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⭐ Core Definition: European Union–Turkey Customs Union

The European Union–Turkey Customs Union is a trade agreement between the European Union (EU) and Turkey. The agreement came into effect on 31 December 1995, following a 6 March 1995 decision of the European Community–Turkey Association Council to implement a customs union (Turkish: Gümrük Birliği) between the two parties. Goods may travel between the two entities without any customs restrictions. The Customs Union does not cover essential economic areas such as agriculture (to which bilateral trade concessions apply), services or public procurement.

In 1996, a free trade area was established between Turkey and the European Union for products covered by the European Coal and Steel Community. Decision 1/98 of the Association Council covers trade in agricultural products.

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👉 European Union–Turkey Customs Union in the context of European Single Market

The European single market, also known as the European internal market or the European common market, is the single market comprising mainly the 27 member states of the European Union (EU). With certain exceptions, it also comprises Iceland, Liechtenstein, Norway (through the Agreement on the European Economic Area), and Switzerland (through sectoral treaties). The single market seeks to guarantee the free movement of goods, capital, services, and people, known collectively as the four freedoms of the European Union. This is achieved through common rules and standards that all participating states are legally committed to follow.

Any potential EU accession candidates are required to make association agreements with the EU during the negotiation, which must be implemented prior to accession. In addition, through three individual agreements on a Deep and Comprehensive Free Trade Area (DCFTA) with the EU, Georgia, Moldova, and Ukraine have also been granted limited access to the single market in selected sectors. Turkey has access to the free movement of some goods via its membership in the European Union–Turkey Customs Union. The United Kingdom left the European single market on 31 December 2020. An agreement was reached between the UK Government and European Commission to align Northern Ireland on rules for goods with the European single market, to maintain an open border on the island of Ireland.

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European Union–Turkey Customs Union in the context of Economy of Turkey

Turkey has an emerging free-market economy. It ranked as the 16th-largest in the world and 7th-largest in Europe by nominal GDP in 2025. It also ranked as the 11th-largest in the world and 5th-largest in Europe by PPP in 2025. Turkey's rapid economic growth since the 2000s was stranded by the economic crisis in 2018, but it began to recover in 2021. Turkey's USD-based nominal GDP per capita and GDP-PPP per capita have eventually reached their all-time peak values in 2024.

Turkey is a founding member of the OECD and G20. Ratified in 1995, the European Union–Turkey Customs Union has established a free trade area between Turkey and the European Union, which has increased bilateral foreign trade, investment and economic activity.

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European Union–Turkey Customs Union in the context of Accession of Turkey to the European Union

Turkey is negotiating its accession to the European Union (EU) as a member state, following its application to become a full member of the European Economic Community (EEC), the predecessor of the EU, on 14 April 1987.

After the ten founding members in 1949, Turkey became one of the first new members (the 13th member) of the Council of Europe in 1950. The country became an associate member of the European Economic Community (EEC) in 1963 and was an associate member of the Western European Union from 1992 to its end in 2011. Turkey signed a Customs Union agreement with the EU in 1995 and was officially recognised as a candidate for full membership on 12 December 1999, at the Helsinki summit of the European Council.

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