Is The Solution Norwegian Model?
Turkey IMSAD Chairman of the Board Ferdi Erdogan evaluated Britain’s separation from the European Union (EU). Raising the question of whether our exports to Britain after Brexit can continue in the same way, Erdogan, Chairman of the Board of Directors of IMSAD said, “A new road map should be drawn up with Britain after Brexit. There is a risk of losing the UK market to rival countries.” Indicating that there are 4 separate options in relations between England-EU and Turkey; Ferdi Erdogan said: “The most viable option for us is the Norway model ‘. However, it is uncertain whether our export performance to England will remain the same if Britain has started a free trade agreement with third countries and we wait for the bilateral meeting. ”
2020 negotiation process
Stating that there is a need to pay attention to the effects of Britain’s separation from the EU on January 31st on the construction materials sector, Erdogan said: “By the end of 2020, the parties will negotiate a comprehensive agreement to organize their future relations. Britain will continue to adhere to EU rules throughout the transition process. It is difficult to reach a comprehensive agreement during this time. Turkey-Britain trade relations in this period is expected to remain the same until the end of 2020, “he said.
There are 4 options
Expressing that there are 4 options for the path to be followed in England-EU and Turkey relations, Erdogan stated that “we can say that the best option for our country is the ‘Norwegian model’. If this model is implemented, relations and trade with the EU are maintained as a single European market member, zero customs + zero quota is applied and contribution to the EU budget continues. According to the “Swiss Model”, one of the options, bilateral agreements are made with the EU, as well as bilateral agreements with member countries, only contracts for goods and individuals are done without being a member of the European Single Market and UK content can be expanded. In this case, we need a new agreement with Turkey. In the “European Free Trade Association Model”, which is another option, Britain conducts trade with the EU as a member of EFTA. Zero customs + zero quota is applied, limited contribution is provided to the EU budget. We can also say that this model is suitable for Turkey. The last option, according to the ‘World Trade Organization Model’; a relationship is established with the EU like a third country. The EU makes a free trade agreement with the UK. The main purpose of the agreement is zero customs + zero quota. England also makes free trade agreements with third countries. Here you need to make a new agreement with Turkey. If this last option is applied, it will not be possible for us to have a bilateral meeting before 3-4 years, it will be difficult to predict what will happen to the export we made to England in this process.
” Erdogan said that “Our total exports in 2014 to 2018 were 5 billion 679 million dollars. The growth or shrinkage of these export figures at the point we have reached today is completely dependent on Turkey’s roadmap with England that will be determined after Brexit, “he said.
EU is applying a new trade strategy
Stating that the period of multilateral world trade agreements is now closed, Erdogan said, “So that the World Trade Organization’s arbitration function is paralyzed. The EU is making bilateral free trade agreements and is starting to use sustainability in trade as the main factor. Now the rest of the world is tax free and quota-free.” However, this situation removes the advantage of our country’s Customs Union. ”