The European Union is comprised of 27 member states that work together to pursue common economic, political and social goals. In 2004, eight new member states were accepted into the union. However, Turkey, which has applied for membership over twenty years ago, is yet to be accepted into the EU.
In 1993, the Copenhagen criteria were established in order to evaluate potential member countries on their readiness to join the EU. Currently, Turkey does not meet all of these criteria. Turkey's economic situation is plagued with increasing current account deficit, weak currency, slow growth in GDP, and fears of the possible return of inflation. Turkey's political situation is troubled by political instability, the power of the army over the government, political tensions with the Kurdish population, and the failure of Turkey to recognize the Greek Cypriot Republic of Cyprus as the sole authority on the Cyprus Island. In addition, Turkey is in violation of some human rights laws, and the fact that 99% of Turkey's population is Muslim is threatening to many EU members.
Even though Turkey's trade relations are strongly dependent on the EU, the Gravity Model identified only marginal gains in GDP and consumption volume for both parties as a result of accession. However, of a greater concern for many EU countries is the large migration of Turks into the union as a result of accession.
Turkish accession is of particular importance to managers operating throughout the region. The higher levels of economic growth and consumption in Turkey, especially in the textiles, wearing apparel and agriculture industries will provide greater opportunities for firms located in the country. The eventual removal of border checks and customs procedures will facilitate the free movement of goods and eliminate associated duties. Businesses will also benefit from the greater political stability and the ease of doing business due to a common currency. Therefore, it is evident that Turkey's accession into the European Union brings both benefits and costs to both parties, and will certainly continue to remain a complex issue.
[...] Within Turkey, admittance to the EU will improve the attractiveness of the country's economy. The higher levels of economic growth and consumption outlined in the Economic Impacts section of this report, especially in the textiles, wearing apparel and agriculture industries, will provide substantial opportunities for firms located in the country. The EU's farm subsidies and development assistance also have great relevance. These will present businesses with additional sources of revenue and needed capital. Managers in Turkey will also benefit from the greater political stability and security. [...]
[...] Tactics that would delay or subvert Turkish membership have recently been pursued by such leaders. The most visible example is Sarkozy's proposal for a Mediterranean Union for which Turkey would form the backbone. Although the organization would likely lead to duplication of effort with the EU and the plan has little chance of success, it has served to further divide member states and the bloc's population regarding whether or not full membership is the best course. Suggestions of a privileged partnership have also been put forward. [...]
[...] The net effect of Turkish accession for the central and eastern European countries however remains positive. Table Macroeconomic Effects of Turkey's Accession to the Internal Market in 2025 (Lejour et al. 40-42) A second notable impact is on the terms of trade. Reduced non-tariff barriers result in a reduction in real trade costs for Turkey and current EU member states. However, the gain observed for Turkey is once again considerably higher, at To put these tables into context, it is useful to consider the gains that the Gravity Model predicted for the accession of the countries that most recently joined the block. [...]
[...] 2000-2001 Financial Crisis in Turkey.” Central Bank of Turkey and Ankara University (2002) “Report for selected country groups and subjects.” International Monetary Fund. Apr.2007 Ross, E. "Turkey's army defends secularism ahead of elections." Reuters August "The World Factbook: Turkey." Central Intelligence Agency Feb “Turkey.” Amnesty International March “Turkey: Country Factfile.” Euromonitor International Database Jan. 2008: 3 “Turkey Geert Hoftstede Cultural Dimensions Explained.” Itim International Mar "Turkey invades northern Iraq." The Economist. February 28th 2008. “Turkey - Multi-annual Indicative Planning Document (MIPD) 2007-2009.” European Commission U.S. Department of Labor. [...]
[...] Turkish accession is of particular importance to managers operating throughout the region. The higher levels of economic growth and consumption in Turkey, especially in the textiles, wearing apparel and agriculture industries will provide greater opportunities for firms located in the country. The eventual removal of border checks and customs procedures will facilitate the free movement of goods and eliminate associated duties. Businesses will also benefit from the greater political stability and the ease of doing business due to a common currency. [...]
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