Under the EU-Turkey Customs Union, Turkiye has to match the EU’s common external tariff. So, when the EU lowers its tariffs for an FTA partner such as India, Turkiye would have to extend the same benefit to India.
“Our goods go into the EU, and then they can go to any country with which the EU has a customs union, but Turkiye will not get the benefit because it is not part of the EU as a territory in the FTA. So, Turkiye cannot export to India and benefit from concessions,” said one of the officials, who did not wish to be identified.
The EU and Turkiye are linked by a customs union, in force since 1996, under which industrial goods and processed agricultural products move freely between them without tariffs or quotas. Turkiye also applies the EU’s common external tariff to imports from third countries for these goods. This arrangement, however, is limited to goods and does not cover primary agriculture, services, investment, government procurement and digital trade.
The India-EU FTA gives preferential market access on 96.8% of tariff lines, covering 99.5% of India’s exports by volume and 90.7% of exports by value to the EU which will become duty-free under the agreement.
“Turkish goods, however, cannot use the India-EU FTA to enter India duty-free, even if they are shipped via EU ports. They remain Turkish in origin and therefore do not meet the rules of origin under India’s FTA, which is signed with the EU and not with Turkiye,” said Ajay Srivastava, cofounder, Global Trade Research Initiative.