The Transatlantic Trade and Investment Partnership (T-TIP) and Turkey
Negotiations between the United States and the European Union regarding the Transatlantic Trade and Investment Partnership (T-TIP) agreement began July 2013 under the leadership of the Office of the US Trade Representative. US President Barack Obama, together with European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy, will take part in discussions to determine the future of trade relations between the United States and the European Union.
The T-TIP aims to further open EU markets to the US by eliminating all tariffs on trade.
Because Turkey is currently part of a Customs Union with the EU, its economy could suffer from its exclusion in the T-TIP as tariff-free goods from the US could enter its markets, but its goods would be subject to tariffs in US markets.
TRCNA is in full support of Turkey’s inclusion in the T-TIP, which would allow Turkish goods to enter the US market without tariffs.
Reasons to formally involve Turkey in T-TIP include the following:
· Turkey’s geographical position – Turkey is a bridge, even an exit door, for Europe and the Middle East and Asia. This position will prove critical in the distribution of goods, especially petroleum products from the Middle East and Caucasus and industrial products from the Far East to both European and US markets.
· Turkey’s sustained economic growth – Turkey is currently the world’s 16th largest economy and aims to be the in the top 10 economies by 2023.
· Turkey’s population is young and growing – With half of its population under 30 there is a promising, robust future for Turkey on the world stage.
· Mutual support for increased trade ties – Both US President Barack Obama and Turkish Prime Minister Recep Tayyip Erdogan expressed as recently as May 2013 the need for continued expansion of bilateral trade between the two states.