Announcement

Collapse
No announcement yet.

Turkey and Russia discuss Customs Union collaboration

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Turkey and Russia discuss Customs Union collaboration

    Russia Today
    July 21 2014


    Turkey and Russia discuss Customs Union collaboration



    Stalled progress towards EU membership has shifted Turkey's economic
    interest, and it is now looking for closer cooperation with Russia's
    Customs Union, Economic Development Minister Aleksey Ulyukayev said.

    Ulyukayev discussed the plan with Turkish Economy Minister Nihat
    Zeybekci at the G20 trade ministers meeting in Sydney, Australia, over
    the weekend.

    The talks focused on how the two countries can transition to using
    national currencies, instead of the dollar and euro, in trade.

    "We have discussed the possible forms of cooperation, including the
    formation of a free trade zone between the Customs Union and Turkey.
    We have agreed to create a working group and to begin a more detailed
    discussion of these possibilities and prospects in September,"
    Ulyukayev said on the sidelines of G20, RIA Novosti reported.

    The free trade zone so far consists of Russia, Belarus, and
    Kazakhstan, and is meant to rival the European Union. At present,
    Turkey has a free trade zone agreement with the European Union.

    Turkey, with a population of 76 million, has a $1.1 trillion economy
    driven by strong industry and service sectors with automotive,
    construction, and electronics on the rise.

    Another developing industry is the transport of Central Asian gas to
    European markets through its territory, which borders eight countries,
    including oil-rich Iran, Iraq, and Azerbaijan.

    Total trade between Russia and Turkey was $32.7 billion in 2013,
    making Russia Turkey's second-largest trade partner, after the
    European Union. Turkey is Russia's eighth biggest trade partner.

    Turkey first applied for EU membership in 1987, and signed a free
    trade agreement with the EU in 1995. It fell into recession in 2001
    and as a result unpegged the Turkish Lira from the dollar-euro basket.
    The lira, along with the ruble, has fallen tremendously in the past
    year as a result of the strengthening dollar and euro. Russia plans to
    protect its economy from Western sanctions by increasing non
    dollar-based trade.

    India and China will also be prioritized as partners.

    "We need to increase trade volume conducted in national currencies.
    Why, in relation to China, India, Turkey and other countries, should
    we be negotiating in dollars? Why should we do that? We should sign
    deals in national currencies- this applies to energy, oil, gas, and
    everything else," Ulyukayev said in a March interview with Russian TV
    channel Vesti 24.

    On May 29 Russia, Belarus, and Kazakhstan signed the Eurasian Economic
    Union document, which will come into effect in January 2015.

    The Customs Union began on January 1, 2010, and started operating
    under a comprehensive customs code in July 2011.

    Commonwealth Independent States (CIS) like Armenia, Tajikistan, and
    Kyrgyzstan may be brought into the free trade zone later.

    If Turkey joins, it would be the first member that is not an ex-Soviet
    state to join the free-trade zone.

    http://rt.com/business/174316-turkey-russia-customs-union/

Working...
X