Select Committee on European Legislation Seventh Report


RELATIONS WITH TURKEY

11.   We consider that the following raises questions of political importance. We make no recommendation for its further consideration, but suggest that it would be relevant to a debate covering relations with Turkey:--

Foreign and Commonwealth Office

(17635) 11383/96 COM(96)491	Commission Report on developments in relations with Turkey since the entry into force of the Customs Union.
Legal base:	--

Background
11.1  In Autumn 1995 the Commission undertook to make an annual report on the implementation of the Customs Union Agreement between the EC and Turkey which entered into force on 31 December 1995. This is the first such report, which was presented to the European Parliament in October 1996.

  The report

11.2  The report notes good progress on implementing the Customs Union, for example by removing quantitative restrictions on import or export duties in the industrial sector in trade with Turkey, and the setting up of a Customs Union Committee. This has met several times and has generally succeeded in reaching satisfactory solutions to problems raised. Turkey has still to conclude trade agreements comparable to those which the EU has with Eastern and Mediterranean countries and to adopt the Community's generalised system of preferences. This appears to be caused by the inability of the Turkish Government to proceed with legislative measures but the effect is more disadvantageous to Turkey than to the European Union.
11.3  The report shows that, since the Customs Union came into force, EU exports to Turkey have increased significantly, while Turkish exports to the EU rose by a lesser amount. The report suggests, however, that Turkey's growing trade deficit may be attributable to overheating of the Turkish economy as much as to the impact of the Customs Union.

  Financial co-operation

11.4  The EU's commitments to Turkey included a special package of 375 million ECU in budgetary aid in connection with the Customs Union and a package of European Investment Bank (EIB) loans totalling a maximum of 750 million ECU from the Bank's own resources. These have not yet been implemented because of the effects of the dispute between Greece and Turkey in the Aegean Sea. Turkey has, however, been a beneficiary under the MEDA financial regulation providing for Community co-operation with Mediterranean countries. The Community has also pledged Turkey macro-economic assistance subject to certain conditions (acknowledgement of balance of payments difficulties, existence of a programme with the IMF), but these conditions have not yet been met.

  Political dialogue

11.5  The report describes contacts set up at various levels between the EU and Turkey, but says that, following the events in the Aegean, it has proved impossible to hold the EC-Turkey Association Council or to organise meetings at ministerial level between European and Turkish heads of various sectors involved in the functioning of the Customs Union, such as trade, internal market, and transport.

  Turkey's economic situation

11.6  The report points to the positive elements of Turkey's economic situation, including growth, the stability of remittances from Turkish migrant workers ($3 billion) and the growth of revenue from tourism. Turkey's foreign currency reserves are increasing. But the report expresses concern about the growing budget deficit and the rise in real interest rates. It suggests that, since the last elections in Turkey, there has been no clear direction in macro-economic policy. Indeed, measures introduced by the Government to increase civil service salaries and pensions and the minimum wage, and various measures to assist farmers, have had the immediate effect of a marked increase in the budget deficit. The report suggests that, in the absence of domestic stabilisation measures, the Turkish Government could be forced to introduce curbs on imports to aid the early recovery of its external accounts. The Commission considers that early progress on macro-economic stabilisation and structural adjustment are essential to the smooth functioning of the Customs Union and to Turkey's fundamental stake in it.

  Political situation

11.7  The report describes the political balance in Turkey since the last election and the various coalitions which have been formed in order to try to provide a Government. Although the most recent coalition, formed in June 1996, undertook to pursue the main thrusts of Turkey's foreign policy (NATO membership, links with the EU and, in particular, Customs Union), it also undertook to strengthen democracy and improve the human rights situation. But in practice, political balance has led to the absence of any legislative initiative by the Government and the almost total cessation of the Parliament's legislative work programme. The democratisation process launched in 1995 has been a casualty of this inactivity.
11.8  The report suggests that the political situation has prevented Turkey from responding to a Council declaration of 15 July in which it stated that relations between the EU and Turkey should be "based on respect for international law and agreements, the relevant international practice and the sovereignty and territorial integrity of the Member States and of Turkey". It has also hampered the advancement of dialogue between the EU and Turkey in the search for a comprehensive settlement on the Cyprus question.

  Human rights

11.9  The Commission's report contains a long section on the human rights situation in Turkey. It describes some liberalisation of the application of Article 8 of the anti-terrorism law which prevents freedom of expression, though the law itself has not been altered and continues to be used to prosecute people for their beliefs. The political situation has also made it difficult for sufficient action to be taken against the torture and ill-treatment of prisoners, disappearances and extra-judicial executions. The report also indicates that the Turkish Government has instituted proceedings in a number of cases against those responsible for the torture.
11.10  The report comments on conditions in Turkish prisons, the state of emergency in the south eastern provinces of Turkey, and pressures on non-governmental organisations suspected of actively supporting the Kurdish cause. Financial support has for several years been provided by the Commission to support Turkish non-governmental organisations and professional organisations promoting human rights.
11.11  The Commission concludes that there has been a lack of progress in the legislative work programme for strengthening democracy and human rights in Turkey, and that decisive and speedy action by the Turkish Government and Parliament to strengthen the freedom of the individual and respect for fundamental rights is essential to meet domestic and international concerns, and to give tangible proof of Turkey's willingness to take steps towards closer ties with the European Union. The Commission notes the claim by the Turkish authorities that the country is at a particularly awkward time in its political history, citing the problems caused by the PKK terrorist movement. The Commission says that it is aware of this situation, but is nevertheless convinced that the fight against terrorism must be conducted in the spirit of respect of the fundamental values of democracy and human rights.
11.12  Finally, the Commission underlines the need to pursue current policies with the regard to relations with Turkey and on Cypriot accession. It says that the objective of a lasting reduction of tension in the Aegean according to the principles of international law, and reaching a fair and sustainable settlement on the Cyprus question imply that, despite the current difficulties, the European Union must strive to keep open all possible channels for dialogue and co-operation with Turkey.

  The Government's views

11.13  In an Explanatory Memorandum dated 2 December 1996, the Minister of State, Foreign and Commonwealth Office (Mr Davis) says that the report reflects UK policy of maintaining a constructive dialogue with Turkey on human rights and Cyprus, while developing the economic benefits of the Customs Union for both sides.

  Conclusions

11.14  The Commission's report raises matters of political importance concerned not only with relations between the EU and Turkey, but with international concerns for the development of human rights and democracy in Turkey, for a stable relationship between Greece and Turkey in the Aegean and, not least, for a basis on which a solution can be found to the current situation in Cyprus.
11.15  This is not a proposal for a legislation and the report is unlikely to lead to any change in EU policy, so we do not consider that it should be debated. However, it provides valuable material which would be relevant to any debate covering relations with Turkey.

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Prepared 19th December 1996