December 19, 2020...12:25 am

Turkey Us Free Trade Agreement

Nevertheless, Turkey`s economic maturity is the main driver of calls for a free trade agreement. The numbers speak for themselves. According to the International Monetary Fund, Turkey had a gross domestic product of $794 billion last year, making it the world`s seventh largest economy. Similarly, per capita income has increased to about $10,600, about 50% more than a decade ago, if inflation is adjusted. Meanwhile, the long-standing U.S. trade surplus with Turkey reached $6.2 billion last year and is expected to continue this year. Turkey was one of 120 countries participating in the GSP, the oldest and largest trade preference program in the United States. The aim is to promote economic development in the beneficiary countries and territories by removing tariffs on thousands of products. WASHINGTON (Reuters) – The United States ended Turkey`s preferential trade treatment on Thursday, allowing some exports to enter the country duty-free, but halved its tariffs on Turkish steel imports to 25 percent. On 12 July, the United States and the European Union concluded their first round of negotiations on the Transatlantic Trade and Investment Partnership (TTIP) for a free trade agreement.

If successful, the negotiations would create the largest free trade area in the world. The outcome of the talks will also have a significant impact on Turkey`s trade relations with America and Europe – although Ankara is not yet a member of the EU, it has had a customs union with Brussels for nearly two decades. The TTIP negotiations therefore raise the question of whether a free trade agreement between Turkey and the United States (TURUS Free Trade Agreement) should be sought to complement the Agreement between Turkey and the United States. Trade relations. Such an agreement would be a win-win for Washington, Ankara and Brussels; Indeed, there is already a framework for this type of triangular free trade agreement between the United States, the EU and the Republic of Korea. In the same speech, Graham referred to these two issues as obstacles to the establishment of a free trade agreement. “The way we do this is to overcome our differences. This cannot be done through the use of military force,” the senator said. Article 16 of The Turkey-EC Association Council`s Decision 1/95 on the implementation of the final phase of the customs union provides, among other things, that Turkey will take the necessary measures and negotiate mutually beneficial agreements with the countries concerned.

“Both the President of the United States and the President of Turkey intend to increase the volume of trade. But when it comes to practical realities, bureaucratic structures in both countries seem to be more preventive [than constructive],” says the professor. Whichever way you want to assess the prospects of such an agreement, it is clear that it would benefit Turkey,” said Hasan Vergil, professor of economics at Istanbul University. Second, there are strategic considerations. Turkey is a NATO ally that supports Western pressure on the Iranian and Syrian regimes; A TURUS free trade agreement would probably strengthen Ankara`s role on both issues, which is in the interests of Washington and Europe. A trade agreement would also give a new dimension to U.S.-Turkish relations and lead them to something deeper beyond a political-military alliance. In addition, America is expected to become an exporter of liquefied natural gas for which Turkey relies heavily on imports. The U.S. Natural Gas Act allows all countries with free trade agreements with Washington to circumvent most of the complicated barriers to importing U.S. gas — a factor that could prove particularly reassuring for Ankara at a time when Washington is pushing to reduce its dependence on Iranian gas.

“If you ask me what the United States and Turkey could do to change relations for the better, it would be a free trade agreement – not only that more trade would reach $100 billion, but also to effectively integrate the economies through an agreement