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Turkish Inclusion in the EU - Example

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The paper "Turkish Inclusion in the EU" is a wonderful example of a report on report on macro and microeconomics. Turkey became a candidate country for membership of EU as a result of its application to Helsinki European Council in 1999. EU established a Customs Union with Turkey in 1995 with its scope based on manufactured products between Turkey and the EU…
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Extract of sample "Turkish Inclusion in the EU"

Free trade theories suggest the enlargement of a regional economic group such as the European Union (EU) should be beneficial for all its member states Introduction Turkey became a candidate country for membership of EU as a result of its application to Helsinki European Council in 1999. EU established a Customs Union with Turkey in 1995 with its scope based on manufactured products between Turkey and EU. Negotiations came underway in October 2005 with screening of the EU legislation. This then paved way for negotiations in making Turkey a member state. During the same time, EU closed one provisional chapter including Science and Research (2006) as it opened negotiations for seven other chapters in consideration to the Turkey application to join EU. The seven chapters include: Enterprise and Industry (March 2007) and Financial Control and Statistics (June 2007), Trans-European Networks and Consumer and health protection (December 2007), Intellectual property and Company law (June 2008). In February 2008, European Council adopted a revised accession partnership with Turkey. Turkey operates under certain EU policies and customs such as technical regulation of products, competition and intellectual property law(Cheuassus, 2004). According to the Delegation of European Commission in Turkey (2001), failure by the state to comply with the past EU policies in other treaties led to its failure in becoming a member state in 2006. Application of such treaties re dated back to 1959 when Turkey made an initial application of becoming an EU member state begun. This has led to the increased need for Turkey to be reconsidered as a member state through its application in 1999. In 2006, the council decided that eight relevant chapters shall neither be closed nor opened until Turkey had fulfilled its commitment due to Turkish failure to apply to Cyprus the additional protocol to the Ankara Agreement. Among the 8 chapters were: free movement of goods, financial services, agriculture and rural development, fisheries, transport policy, right of establishment and freedom to provide services, external relations and customs union. The EU and Turkey are linked by a Customs Union agreement, which came in force on 31 December 1995, pursuant to the 1963 EU-Turkey Association Agreement. The agreement aimed at promoting trade and economic relations( Duna & Kutay,2000). The Customs Union is ambitious but does not cover essential economic areas, such as agriculture, to which bilateral trade concessions apply, services or public procurement. Argument Arguments for Turkey joining EU Owing to the Turkish political stability, the state is a major regional power that is geographically and strategically located between Europe and the Middle East as well as Europe and central Asia (Zahariadis,2004). This has led to the stability of the nation in joining EU as a result of its geographical nature. This brings about the states possibility of joining the free trade with EU. Turkey also serves as a bridge between the Christian Europe and Islamic states offering its support in education and business as a result of its cultural diversity. This provides the nation with the increased possibility of being considered as a member of EU. Its diversity is important in relation to the EU commission through education and business partnerships with other neighbouring European nations. This cultural ties in education and business as well as the Turkish Diaspora provides a clear evidence of Turkeys position in the EU (Ulgen, 2002). According to the World Bank (2005), Turkish economic growth has had positive impacts on the EU in regard to its economic growth since 2003 which has since then doubled. As a result, the European states have had interest in making the state its member due to its population making up of youth who are economically active. The population also serves as an excellent market for European goods as well as provision of labour in the European nations. The population also attracts large investors who bring about the increase in direct investment thus boosting the nation’s economy. This has also led to the envy by the European nations so as to obtain the maximum profits through investment like that of Turkey. The states manufacturing industries has attracted a huge investor population who yield lots of income to the nation and this has promoted the need for Turkey in joining the EU so as to contribute to the economy through its manufacturing industry nature including that of car and appliance manufacture. The possibility of Turkey joining EU is supported to a great extent by its defense nature where the state has been a great ally of Europe and a defender of European interests since the inception of cold war. Since this time, the European nations have had great interest in the nation joining its union so as to provide the required defense to the European nations. Turkish troops have worked with the EU troops in various missions globally including Afghanistan and Democratic Republic of Congo (Tangermann, 2003). Iran and Turkey have had allied nuclear threat with Iraq in working against terrorist nations. The state has been in the frontline in dealing with terrorist through war against such terrorists thus by including Turkey in the EU will result into strengthening security matters as well as defense. This brings about change in the defense of the EU nations in the globe. In terms of reforms, Turkey has brought about change in the EU since its application for membership in 1987, (Ulgen & Zahiadiris, 2004). Since this inception of application for membership, European leaders have given Turkey a consideration in becoming its member as it views its application as genuine. The introduction of reforms in the state in areas such as police reforms by cracking down on torture and giving rights to its minority Kurdish population as well as abolishing capital punishment. These reforms came forth as a result of its initial application to the EU membership thus the nation have been moving closer towards achieving the EU policy and regulations so as to become a member of the commission. These reforms are reflection of the EU in the global front and by denying the nation membership to the commission would lead to decrease in reform implementation. This may retard the implementation of the possible reforms initiated by the Turkey government, (Tonak, 2005). Use of Turkey by the European nations such as Russia as her route for energy may transit Turkey into EU as this may increase its extension of service to the European nations. The nation offers the link for energy transition from central Asia and the Middle East. Arguments against Turkey joining EU According to the Europeans World (2008), Turkish population is currently at over 70 million which is at an alarming rate where by the population is big for the resources and the size of the nation. Compared to Germany a greater and largest nations in the EU with a population over 82 million, Turkeys government failure to control her fertility rates may lead to the increase in the population thus making it the largest nation in the EU if it will be allowed to join the commission. By so doing, the EU commission will be faced by great challenge of having a nation with a larger population despite her potential in increasing the economy of the nation,(Desantis,2000). Germany has been able to control her fertility rates thus enabling it to continue serving and operating under the EU. The EU is much into the population of Turkey in terms of decision making in the commission as the higher the population means that the nation will have great say in the EU. This has posed lots of debate fro the EU member states in relation to her population and failure to control her fertility rates thus making impossible for the nation to join the EU in terms of her population size, (EU’s Trade, 2009). Germany on the other hand is proposing for the rejection of Turkey in the EU as it the nation which has the larger majority in the commission thus having say in the EU policy and decision making. This has led to the delay of the commission in making the decision over Turkish inclusion to the EU. The greater the populations the higher the number of weighted voting system of the EU where by the majority decide for the minority and other decision making in the commission. The inclusion of Turkey to the EU is subjected to decision by the members as a result of the nation’s threat in terms of making decisions and policies. The position of the country geographically posses a lot of concern to the EU member states as a result of the nation bordering Iran and Iraq as well as its location in the Asian continent. This has posed a lot of concern and consideration of the member states who view the nation as trouble making in terms of threat from its neighboring states as well as her political instability. This may bring about the occurrence of violence and other related cases if the country is included in the EU, (Ilgas,2002). This is because the member states are concerned of their security in relation to Turkey’s inclusion to the EU. Presence of this nation may bring about instability and insecurity to the member states as the member states foresee security risks upon Turkeys inclusion to the EU. As asserted by the Organization of Economic Co-operation and Development,(2002), Turkish politics have been seen by the EU as unstable owing to her several coups staged by the military over the years. The current political stability has not shown any difference in comparison with the past political instability as both are considered same. The ruling party APK, has come close to being dissolved as it has chosen to solve certain issues as those lifting the ban of female students putting on hijab in the institutions of higher learning as well as the inclusion of law barring of her citizens from talking about the Armenian genocide which is seen by the EU as the country responsible for the genocide. APK’s war against the Kurdish Militant group PKK has brought about the increase in political instability in the nation. The EU Commission has been on the watch over the Turkish government reforms regarding the Judiciary as well as the peoples’ rights. The commission concluded that the government reforms have been one sided where by the most urgent areas have been ignored especially that of the Judiciary as well as the peoples’ rights. This has had negative impact and perception from the outer nations such as Germany as they regard the nation as a failed state in terms of her reforms and policies relating to the individuals of the nation hence her inclusion to the commission would lead to the failure of the commission as the state cannot handle her nation’s problems (Mc Daniel & Balistren, 2003). In relation to the economy as compared to the increased population, the nation is regarded by EU member states as poor in terms of the population-resource relationship. For instance in 2005, Turkish population represented 15% of the total EU population where as her GDP was rated at only 2% of the EU’s GDP. This reflected that the nation had a wide gap in development as it contributes less to the commission in terms of her GDP. Despite the greater youthful population in the nation, Turkey has then failed to reach a great height in the economy as her representation in the EU Commission is low compared to her GDP and economic growth. The nation is thus regarded as underdeveloped by the EU and her inclusion in the commission would lead to the increase in straining of the commissions annual budget. The participation and inclusion of the Agricultural policy in the economy is important in promoting the economy of the nation. This overdependence on agriculture may lead to failure in terms of economic growth as the trend may reverse due to the enactment of the policies,(Pugel,2007). Turkish religion and culture is Islamic as compared to the majority of the EU member states and as a result, the nature and culture of the state have impacts on the population as the Islam religion stands at 98% of the population. The nature and culture of the great population has impacts on the government where by the banning of women from wearing hijab has had impacts on the nation and the EU. EU commission and policies have perceptions and impacts on the Muslim language and religion where by inclusion of Turkey to the commission may bring about debate in the commission where the member states view Muslim nations such as Iraq and Iran relations to terrorism and criminology. This perception is viewed by the commission thus affecting the nation’s inclusion to the EU,(Shirotori,2004). Turkish Inclusion in the EU Turkey has a greater possibility of being considered as an EU member. This is as a result of the nation’s potential of expansion of trade through her manufacturing industry establishment in such areas as vehicle and other products. These products manufactured by the state have market in the European nations as well as the state participation in trade. Owing to the EU-Turkish customs union, the nation has a great potential of being a member of EU in areas of trade. In regard to trade, Turkey becomes the only candidate country that has a customs union with the EU. Turkey serves as a single market in the EU if the treaty is signed with the nation. This is as a result of the nation’s participation of internal s well as external trade within and without the EU member states. Trade integration among the EU member states is currently facing challenges where by the nation may circum to shortcomings in relation to the trade and its integration. The degree of integration would be enhanced through the incorporation of such sectors as agriculture which may bring about the expansion of customs union. This comprehensive coverage of the Turkish nation’s inclusion to the EU may bring about change in the EU member states in relation to trade and economic growth among the commission states and the member state, Turkey, (Sheridon, 2002). According to the nations ability in the economic growth has a positive impact on the EU in terms of the economic stability. This is necessary in relation to the country’s participation in trade thus improving the economy of the commission. The commissions free trade tariffs is seen to improve the nations economy as well as that of the EU as the goods produced by the nation is traded within the EU membership as well as that of the nations trade expansion. This is important as trade offers room for the development of the nation and that of the EU in terms of trade. Trade promotes the economy to a greater extent where by the nation and the member states benefit directly as well as indirectly from trade. Increase in population is termed as having the great potential of improving the economy as a result of the nations youth participation in nation building. This is because the youth participate in manufacturing industries as well as serving as the market for the goods and services obtained from other nations. Thus the inclusion of the nation in EU and the introduction of free trade have encouraged the participation of the youth in trade. This is a result of introduction of the free trade as well as free participation of trade in the nation and other nations within the EU may bring about development. This is important as the EU may obtain revenue from trade as well as that of the nation benefiting from the same. Turkey as a nation has played an important role in the economy of the nation as its inclusion to the EU may increase the production through the use of the growing population in development. Inclusion of the nation in EU may bring about the increase in production. This is because EU despite of the member states denial of the nation in relation to her population where nations such as Germany are keen over the nation’s inclusion in terms of decision making as the nation with the larger population participates in decision making (Pugel, 2007). Direct and indirect investment in and out of the nation is important as it brings about economic development in terms of revenue collection from trade and investment. This is important in terms of economic growth thus the inclusion of the nation in the EU will bring about development in the commission as well as to the nation, (Bayar et al, 2000). Free trade in the commission will bring about the increase in development in terms of economy. The possibility of the nation being included in the commission is high in terms of the economic growth where by the investors both internal local and international tend to operate in the nation. Turkey’s membership of EU will lead to the enlargement of the already established customs union between EU and the nation in the agro-food products. This is s a result of the introduction of the Agricultural policies through the act of free trade among the EU member states where by the production shifts from manufacturing of cars and appliances to the processing of agro-food products. This is as a result of the possible competition existing among the member states. The existence of the nation in the market brings about the widening of the scope in marketing. This will promote trade among the member states where by market is available for the agricultural products as compared to that of the manufactured products. The development of the common external tariff as well as that of full liberalization is likely to increase trade among the member states as a result of the nation’s inclusion in the commission. According to the Armington assumption of trade, inclusion of Turkey in the EU is important in the promoting trade among the member states. This also means that the agreement between the EU unions will imply the adoption of a common external tariff thus promoting trade among member states, (Eruygur, 2005). Turkey’s inclusion to the EU may bring about the abolition of trade barriers between Turkey and the EU. This may result into the expansion of trade and increase in the number of investors both internal and external thus promoting trade and partnership among the member states and as a result brings about growth in the economy of the nation. The inclusion of agro-food trade among the nation states increases the possibility of the nation’s participation and success in trade with the member states. The possibility of the EU considering Turkey as a member is drawn from the nation’s effort in promoting international as well as local trade through the inclusion of the member states in the nation’s economy. This is important to the EU as Turkey has been considered as one of the fast growing economies in the world with ties in Asia and Europe hence its inclusion to the EU may bring about great economic change among the states. Turkey’s effort to curb and reduce terrorism through the use of its strong defense team is important to the EU as the European commission consider the nation as powerful in her defense and in dealing with criminals. The effort of the nation in dealing with such crimes is necessary thus the inclusion of the nation in the EU will bring about change in security as well as defense among the member states. The diversification of education and culture among the member states is important in bringing about local and international relations hence the diversification of the existing relations with that of Turkey may bring about positive changes among the member states in terms of economic and political stabilities. Turkey’s inclusion to the EU is possible due to her participation and contribution to the global economy as a result of her participation in trade and marketing. This is made possible through the inclusion of the investors both local and foreign in the nation as a result of free trade tariff among member states thus resulting into the promotion agro-food products as compared to vehicles and appliances which are already existing in the European market. This will bring about increase in competition among the member states where those with commodities are allowed to trade freely among the member nations thus improving the host nation’s economy References Bayar, A., H. Nuray and S. Receberoglu (2000), The Effects of the Customs Union on the TurkishEconomy: An Econometric Analysis of the Four Years’ Implementation,Economic DevelopmentFoundation (IKV), Istanbul. Chevassus, E., and Unguru M. (2001), “The EU enlargement to the CEECs: Impacts on agri-food Trade with Third Countries”, ECOMOD Conference Paper. De Santis, R. (2000), “The Impact of a Customs Union with the EU on Turkey’s Welfare, Employment and Income Distribution: An AGE Model with Alternative Labor Market Structures”, Journal ofEconomic integration, Vol. 15, No. 2, June. Delegation of the European Commission in Turkey (2001), EU Supports Turkey’s Exports and QualityInfrastructure Project, Press Release, 17 April (retrievable from http://www.deltur.eu.int). Duna, C. and Kutay, P.(2000), “Where to with customs union?”, Intermedia Press, Istanbul. European Commission (2004), Communication on A pro-active Competition Policy for a Competitive Europe, COM(2004) 293 final, Brussels. EU’s Trade: The Relationship with Turkey(2009) New York Europeans World(2008) Arguments for and against Turkey Joining the EU, Brussels Eruygur, H., (2005) “Testing Armington Trade Model: An Empirical Analysis for Turkey,”Paper presented at International Conference on Business, Management and Economics, YasarUniversity, 15-18 June 2005, Izmir, Turkey. Ilgaz, D. (2002), “Turkey Aims at Full Harmonisation with the EU Acquis Communautaire in IntellectualProperty as a Requirement of Membership”, in Peter G. Xuereb (ed.), Euro-MediterraneanIntegration: The Mediterranean's European Challenge – Vol. III, Malta: Publishers EnterprisesGroup Ltd. Organisation for Economic Co-operation and Development (2002). OECD Reviews of Regulatory Refom – Turkey: crucial support for economic recovery : 2002. Organisation for Economic Co-operation and Development. ISBN 92-64-19808- 3. http://books.google.com/?id=ufYU_fR7mLgC&pg=PP1&lpg=PP1&dq=Turkey.  McDaniel, C., and Balistreri, E, (2003) "A Review of Armington Trade SubstitutionElasticities," joint publication: Integration and Trade (2003) 7/18 and ÉconomieInternationale, 94-95, pp. 301-314. Pugel, T.(2007) International Economics, 13th edition. New York: McGraw-Hill Irwin. Sheridan, P. (2002), Doing Business in Turkey, London: Denton, Wilde, Sapte & Guner, October. Tangermann, S. (2003), “EU Enlargement in Agriculture and the WTO Process”,Agricultural Economics, 49 (2), pp.71-79. Shirotori, M., (2004) “WTO negotiations on agriculture: Assessment of non-ad-valorem tariffs as a tariff barrier”, UNCTAD, Working Paper. Tangermann, S. (2003), “EU Enlargement in Agriculture and the WTO Process”, Agricultural Economics, 49 (2), pp.71-79. Tonak, A. (2005) Turkey and the European Union, Cambridge Ülgen, S. (2002), “The customs union as the catalyst of globalisation”, Turkish Policy A Quarterly, Spring,Vol. 1, No. 2. Ulgen, S. & Zahariadis, Y.(2004) The Future of Turkey- EU Trade Reltions: Deepening vs Widening. CEPS EU-Turkey working papers, vol 5. 1 World Bank (2005). "Turkey Labor Market Study" (PDF). World Bank. http://siteresources.worldbank.org/INTTURKEY/Resources/361616- 1144320150009/Labor_C2.pdf. Retrieved 2006-12-27. Vol. 1, No. 2. Zahariadis, Y. (2004), “The Economic Implications of Deep Integration in the EU- Turkey CustomsUnion”, unpublished Ph.D. thesis, University of Sussex.   Read More
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