Turkey unafraid of EU competition, wants customs deal

Turkey wants to update the customs unions agreement with the European Union because Turkish companies are not afraid of competition from companies in the EU, Deputy Prime Minister Mehmet Şimşek said on Friday.

"An update of the customs unions agreement between the EU and Turkey is in everyone's interest," Şimşek told the Turkish Economy conference organized by the European Policy Center in Brussels.

He said accession to the EU is an indispensable target for his country. "A prosperous and stable Turkey is in the interest of Europe," he added.

The minister, who is responsible for the Turkish economy, called for a new trade agreement that will liberalize all services sectors and public procurement with the EU.

He said his country's economy is converging with the EU.

"Turkey has a very strong banking sector. Spending on education, improving internal and external investment environments are priorities for reform," he said.

"We are deeply committed to making reforms despite the challenges we have been facing. Turkey is faced by a terrorist threat. The state of emergency was not a political move but a necessary tool in hard times." he added.

Şimşek said some people in the continent talk about a regressive Turkey without taking into account "the challenges of the defeated coup", "terrorism" and "instability" in the region.

"We expect more support and empathy from Europe, less ambiguity and negative attitude. Turkey will make it to achieve real convergence with the EU," he said.

Despite not being a member of the EU, Turkey is a member of the customs union agreement since 1995, but this does not cover agriculture (except processed agricultural products), services or public procurement right now.

Ankara wants to include services, government contracting and most agricultural goods. Şimşek was in Brussels to attend the EU-Turkey High-level Economic Dialogue with Turkish business leaders.