ABSTRACT
Turkey and the European Union (EU) had different motivations and expectations in focusing on the completion of the customs union. Turkish policymakers were mainly stimulated by the country's long-standing bid for EU membership, and therefore regarded the customs union as the final step before EU membership. The customs union decision of the Association Council on 6 March 1995 terminated the transitional period, whose conditions, detailed rules and timetables had been determined by the Additional Protocol of 1970. The fact that Turkish firms have not received automatic reciprocal access to those third-country markets with which the EU has negotiated Free Trade Associations (FTAs) leaves them at a competitive disadvantage to EU exporters. The European Commission has proposed incorporating a clause into the EU's agreements with third countries asking these countries to conclude a similar agreement with Turkey.
