EU seeks to revive ties with Turkey as Ankara eyes China, BRICS | Economy

The European Union is stepping up efforts to boost trade ties with Turkey, aiming to modernize the customs union in 2025, while Turkey, frustrated by slow progress, is increasingly looking towards rival blocs such as China and the BRICS countries.

Europe’s Strategic Plan

Bloomberg said that the executive arm of the European Union and member states are working on a 3-stage plan to revive and strengthen relations with Turkey.

This plan includes – according to Bloomberg –

• Increase the number of high-level meetings.
• Relaunch of the European Investment Bank (EIB) operations in Türkiye.
• And start new talks to modernize the Customs Union.

The EU initiative is partly driven by the need to strengthen alliances against Russia’s war on Ukraine, where Turkey plays a crucial role in preventing sanctions evasion, stopping irregular migration flows to Europe, and contributing to defense as a NATO ally, the agency said.

Ankara’s frustration and alternatives

Despite these efforts, Turkey is increasingly dissatisfied with its relationship with Europe, with delays and obstacles on issues such as visa-free travel and the customs union.

Senior Turkish officials expressed frustration, highlighting that Turkey had viable alternatives and was exploring membership in the China-led Shanghai Cooperation Organization and reaching out to the BRICS club, which includes Russia, China and India.

Turkey signed a customs union agreement with the EU in 1995, and began accession talks in 2005 that had been stalled for years.

Turkish officials are now looking for concrete progress on specific issues rather than “empty” promises about EU membership, Bloomberg says.

Defense and trade tensions

Turkish President Recep Tayyip Erdogan, after the NATO summit in Washington, criticized several European Union countries, including Germany, for restricting arms and equipment exports to Turkey.

“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 at the time.

German Chancellor Olaf Scholz urged lifting the ban on the sale of Eurofighter Typhoon jets to Turkey, and also pointed to the reduced $23 billion contract for F-16 jets with the United States, as well as the engines for Turkish warships and the $24 billion equipment for the Turkish nuclear power plant, which Russia is building.

Conditional EU participation

Bloomberg estimates that the EU’s approach to reviving relations with Turkey involves a sequential, proportionate and reversible strategy. The European Commission launched a new high-level dialogue on trade on July 8 to address trade incentives and prevent sanctions circumvention.

Another dialogue on migration and security is scheduled before the summer break.

European Investment Bank

The European Investment Bank is preparing to relaunch its activities in Turkey after suspending operations in 2019, due to what it called “illegal Turkish drilling activities in the eastern Mediterranean,” according to Bloomberg.

In addition, UNHCR works with national governments to facilitate visa applications, particularly for students and business people.

If progress continues, negotiations to modernize the customs union could begin next year.

The current agreement covers a common external tariff for industrial goods, but excludes services, public procurement and most agricultural products.