ISTANBUL
Turkey's Deputy Prime Minister Numan Kurtulmus said Thursday there are still issues to be resolved with the free trade agreement between the U.S. and the EU, speaking at a panel on the possible impacts of the agreement on Turkish economy in Istanbul.
Turkey demands to be involved in the deal -- called the Transatlantic Trade and Investment Partnership -- for its Customs Union agreement with the EU will oblige Turkey to accept the U.S. goods to enter the country without any tariff, while Turkish goods will be taxed.
"As the TTIP talks proceed, there will be significant issues between the more liberal U.S. and the tighter regulator, the EU," the minister said.
Kurtulmus said this would shrink Turkish economy by 2.5 percent and the unemployment will increase by 0.4 percent, according to a study.
"We will not accept anything to be imposed as a fait accompli regarding the TTIP," he said.
The TTIP has the potential to integrate two of the world’s largest economies by cutting tariffs and removing regulatory barriers to trade between the U.S. and the European Union.
Turkish officials have repeatedly criticized future free-trade agreements signed by the EU with other countries, which would effectively open Turkey’s market to exports from these states due to Ankara's customs union engagement with the EU.
Ali Koc, head of the International Competitiveness Research Institute, said Turkey should not stay out of such comprehensive trade agreements, while acknowledging the involvement talks will be a tough process for the country.
Koc also said he does not foresee any agreement between the U.S. and the EU by the end of this year due to lingering differences.
"Turkish business world supports and appreciates the government's struggle to revise the Customs Union Agreement and its effort to be included in the TTIP," Koc added.
Earlier this month, Turkish Economy Minister Nihat Zeybekci had said Turkey and the EU will start talks on the existing Customs Union agreement.
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