Ankara's critical view of the EU-India Free Trade Agreement: Turkey is emphatically calling for the modernisation of the customs union with the EU

Yaşar Aydın

No 12/2026, SWP Comments from Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs

Abstract: Thirty years after establishing a customs union with the European Union (EU), Ankara sees growing economic risks in the EU's free trade agreements with third countries, most recently India. While negotiations on the EU-India Free Trade Agreement were concluded at the end of January, and security cooperation between the EU and India is now also to be expanded, Ankara remains on the sidelines. From Turkey's perspective, the agreement could also weaken its significance in the EU's strategic calculus. Ankara is therefore making a strong case for the modernisation of the customs union. It cannot be ruled out that the structural asymmetries of the customs union will become even more entrenched to Turkey's detriment: Market integration without political participation may place Turkey at a lasting disadvantage and strain its relations with the EU. Once the free trade agreement enters into force, Indian products will gain easier access to the Turkish market, whereas Turkish products will not gain corresponding access to India. Due to geopolitical differences with India, Turkey also sees risks to its own regional interests. Brussels and Berlin could use this constellation to put cooperation with Ankara on a viable institutional footing.

Keywords: customs union; free trade agreements; geoeconomic rivalry; European Union (EU); Turkey; India; market integration; political participation (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:swpcom:339621

DOI: 10.18449/2026C12

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