Recep Tayyip Erdogan during the NATO Summit in Washington, DC, on July 10. (Ting Shen/Bloomberg)
The European Union is accelerating plans to improve ties with Turkey aimed at strengthening trade relations next year even as Ankara is increasingly looking toward rival multilateral groups after becoming frustrated with a lack of progress with Brussels.
The bloc is working on a three-stage plan that would increase the number of high-level meetings, relaunch operations of the European Investment Bank in the country and culminate with new talks to modernize the customs union between both sides, according to people familiar with the matter who were granted anonymity to discuss sensitive talks.
The blueprint discussed by the EU’s executive arm and member states is part of an effort to cement ties with partners against Russia’s invasion of Ukraine, where the bloc wants Turkey to help prevent the circumvention of sanctions. Ankara is also key in efforts to stem irregular migration flows toward Europe and plays an important role in defense as a NATO ally.
But Turkey has grown increasingly unhappy about its broader relationship with Europe, including on trade and defense, senior Turkish officials said. The country is fed up with delays and obstacles raised on issues including visa-free travel or the customs union, the Turkish officials said.
The building frustration in Ankara has led the government to explore alternative arrangements with other blocs. The Turkish government wants to join the China-led Shanghai Cooperation Organization. It also recently reached out to the BRICS club of major emerging nations that counts Russia, China and India as founding members.
Turkey signed a customs union agreement with the EU in 1995 and has been a candidate to join the bloc since 2005. But accession talks have been stalled for years. Now, the country is looking for genuine progress on specific issues instead of empty promises on membership, the officials added.
France, Germany and other countries are failing to recognize Turkey’s strategic importance for the EU as a trade and defense partner, the Turkish officials said. The EU should understand that Turkey is not without alternatives, they added.
Turkish President Recep Tayyip Erdogan, speaking Thursday after a NATO summit in Washington, complained that many EU nations, including Germany, were restricting exports of arms and equipment it needed as a key defense and trade partner of Europe which has also assumed a critical role of stopping migration of refugees from Syria and elsewhere toward Europe.
“There is no reasonable and logical explanation for the fact that there are still some obstacles and restrictions in defense industry trade between allies,” Erdogan said. In response to a specific question about the state of defense and security ties with the EU, Erdogan said: “Unfortunately, as of now, there is no development with these EU member countries.”
He urged German Chancellor Olaf Scholz to lift a block on the sale of Eurofighter Typhoon jets to Turkey, shortly after scaling back a $23 billion contract for F-16s with the US, as well engines for Turkish warships and equipment for Turkey’s $24 billion plant being built by Russia on Turkey’s Mediterranean coast.
Reversible Approach
As the EU tries to navigate bilateral sensitivities involving different member states, the European Commission proposed an approach that is sequenced, proportionate and reversible, the people said.
The commission launched a new high-level dialog on Trade on July 8, where both sides addressed trade irritants and preventing circumvention of sanctions. Both sides may hold the third dialog on migration and security before the summer break.
The EU’s executive arm has been also preparing to relaunch the EIB’s work in the country after the summer, following the suspension of activities in 2019 in response to what it said were illegal Turkish drilling activities in the Eastern Mediterranean. The EU’s multilateral bank signed a special financing agreement to support post-earthquake reconstruction in 2023. The commission is also planning to work with national governments to facilitate visa applications, especially for students and businesspeople.
If progress continues, EU officials hope that negotiations to update the customs union could start next year. The commission has long pushed for updating the agreement with Turkey but progress was derailed amid tensions in the eastern Mediterranean.
The customs union agreement provides for a common external tariff for all industrial goods, but doesn’t apply to services, public procurement or agriculture — except for processed agricultural products. Bilateral trade concessions apply to agricultural, coal and steel products.
Seeking Engagement
A commission spokesperson said that work to develop the EU-Turkey political, economic and trade relations is guided by set of conclusions adopted by EU leaders in April.
On that occasion, leaders endorsed the gradual strategy to improve ties with Turkey. But they also stressed that Ankara’s “constructive engagement will be instrumental in advancing” in bilateral cooperation, giving “particular importance” to the progress in the Cyprus settlement talks.
Member states, including France and Germany, have stressed in closed-door discussions the importance of reciprocity and gradual progress depending on Turkey’s behavior, the people said. In this regard, some capitals want to see more efforts made in regards to the Cypriot issue.
The Mediterranean island — less than half the size of New Jersey - was effectively partitioned in 1963 when fighting erupted between its two main groups: Greek and Turkish Cypriots. It was fully divided in 1974 after Turkey intervened, capturing the northern third of the island, saying it intended to protect the minority Turkish Cypriots following an Athens-backed coup by supporters of union with Greece.
