Treaty of customs union between European Union candidate Turkey and European Union
The EU–Turkey Customs Union eliminated customs restrictions on goods between Turkey and the EU, boosting bilateral manufacturing trade by 55–65 percent.
Key Facts
- Effective date
- 31 December 1995
- Association Council decision
- 6 March 1995
- Trade increase in manufacturing
- 55–65% vs. Ankara Agreement baseline
- Free trade area established
- 1996, covering ECSC products
- Areas excluded from union
- Agriculture, services, public procurement
By the Numbers
Cause → Event → Consequence
Turkey had been an associate member of the European Community since the 1963 Ankara Agreement, and both parties sought to deepen economic integration. On 6 March 1995, the European Community–Turkey Association Council formally decided to implement a customs union, setting the stage for its entry into force.
The EU–Turkey Customs Union came into effect on 31 December 1995, allowing goods to move between the two parties without customs restrictions. The agreement also required Turkey to align its industrial standards and relevant legislation with the EU acquis communautaire, and established a common external tariff for covered products.
A free trade area for European Coal and Steel Community products was established in 1996, and agricultural trade was addressed under Decision 1/98 of the Association Council. A 2020 study confirmed the agreement significantly expanded bilateral trade, with manufacturing trade between the EU and Turkey rising 55–65 percent compared with the previous Ankara Agreement framework.
Political Outcome
Customs union entered into force, eliminating tariffs on goods and requiring Turkey to adopt EU internal market standards for covered sectors.
Bilateral trade governed by the 1963 Ankara Association Agreement with limited integration
Full customs union on goods with common external tariff and regulatory alignment requirements