Regional trade agreements (RTAs) have been gaining prominence in recent years as a means of promoting economic integration between countries that share geographic proximity and economic interests. Turkey, a country straddling Europe and Asia and with a rapidly growing economy, has been actively involved in several RTAs. In this article, we will explore the regional trade agreements that Turkey is a member of and the benefits that these agreements offer.
Customs Union with the European Union
One of Turkey`s most significant RTAs is the Customs Union with the European Union (EU), which came into effect in 1995. Under this agreement, Turkey and the EU have eliminated tariffs and other trade barriers on most goods. This has led to a significant increase in bilateral trade, with the EU being Turkey`s largest trading partner.
The Customs Union has brought several benefits for Turkey. First, it has provided access to the EU market, which is the world`s largest single market, with over 500 million consumers. This has enabled Turkish companies to expand their exports to the EU and has attracted foreign investment to Turkey. Second, the Customs Union has facilitated the modernization of Turkey`s economy by encouraging the adoption of EU regulations and standards. This has helped Turkish companies to become more competitive and has improved product quality. Finally, the Customs Union has strengthened Turkey`s ties with the EU, which has been an important partner in Turkey`s quest for political and economic stability.
Turkish-Speaking Countries Cooperation Council
Another important RTA that Turkey is a member of is the Turkish-Speaking Countries Cooperation Council (Turkic Council). This organization was established in 2009 and comprises Azerbaijan, Kazakhstan, Kyrgyzstan, and Turkey. The Turkic Council aims to promote trade and economic cooperation among its member countries and to strengthen cultural ties. The council has also established a common market, which provides for the free movement of goods, services, and capital among its member states.
For Turkey, the Turkic Council offers several opportunities. First, it provides access to new markets for Turkish companies, particularly in Central Asia, which is a region with significant growth potential. Second, the council enables Turkey to strengthen its ties with neighboring countries, which share cultural and historical ties with Turkey. Finally, the council supports Turkey`s strategic objective of becoming a regional hub for trade and transportation.
D-8 Organization for Economic Cooperation
Turkey is also a member of the D-8 Organization for Economic Cooperation, which comprises eight developing countries: Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey. The D-8 aims to promote economic cooperation among its member countries and to support sustainable development.
For Turkey, the D-8 offers several benefits. First, it provides access to new markets for Turkish companies, particularly in Southeast Asia and Africa, which are regions with significant growth potential. Second, the D-8 enables Turkey to strengthen its ties with developing countries, which share common interests and challenges. Finally, the D-8 supports Turkey`s goal of playing a more prominent role in the global economy.
Conclusion
Regional trade agreements have become an increasingly important tool for promoting economic integration in today`s globalized economy. Turkey, with its strategic location and growing economy, has been actively involved in several RTAs, including the Customs Union with the EU, the Turkic Council, and the D-8. These agreements have provided Turkey with access to new markets, improved competitiveness, and strengthened ties with neighboring countries and the global community. As Turkey continues to pursue its economic development goals, regional trade agreements are likely to remain a key component of its strategy.