Piri Reis University

Faculty of Economics and Administrative Sciences

International Logistics and Transportation

GRADUATION THESIS
Türkiye – European Union Trade Relation & Mode Choice

Oğuzhan Düzgün
201834007

Advisor: Ast. Prof. Ahmet Tuğrul TUĞER

 İstanbul June, 2023

Table of Content

Importance of the Thesis …………………………………………………………………………1

Introduction …………………………………………………...…………………………………2

Türkiye…..………………………………………………………………………………………..3
Turkey’s Logistics Geography…………………………………………………………………………………………...3.1

Türkiye’s Geostrategic Importance for EU ………………..…………………………………………………………...3.2

Turkey's Infrastructure …………………..……………………………………………………………………………...3.3

Highway Infrastructure in Türkiye …….……………………………………………………………………...3.3.1

Highway Infrastructure Projects in Türkiye ……………………………………………………...3.3.1.2

Seaway Infrastructure in Türkiye …..…………………..……………………………………………………...3.3.2

Seaway Infrastructure Projects in Türkiye …………………..…………………………………...3.3.2.1

Railway Infrastructure in Türkiye ……………………...……………………………………………………...3.3.3

Railway Infrastructure Projects in Türkiye …………………..…………………………………...3.3.3.1

Iron Silk Road…………………..………………………………….………………………...3.3.3.2

SWOT Analysis of Iron Silkroad…………………..……………………….…...3.3.3.2.1

Airway Infrastructure in Türkiye ……………………………………………………………………………...3.3.4

Some Airline Companies with Long-Term Operations in Turkey ……………………………...3.3.4.1

Pipeline Infrastructure in Türkiye ……………………………………………………………………………...3.3.5

Pipeline Infrastructure Projects in Türkiye …………………..…………………………………...3.3.5.1

1.Importance of the Thesis
Since the beginning of the trade, countries aim to strengthen the communities they reside with
extending logistics network, establish commercial and economic cooperation. We see the
reflection of these commercial partnerships between countries as commercial blocks such as
EFTA, PAFTA, EEA, CEFTA (etc.). In my thesis, I will talk about the volume, form, conditions
and importance of trade between Turkey, which is the country I live in, and the European Union,
which is both its close neighbor and one of its important commercial partners.

2.Introduction
Economy is the most important element to determine the destiny of any nation or community
and the goods and services produced domestically and served outside is the most vital
determinator that shows the strength and weakness of the nation in terms of trade operations.
Also, trade is the most vital commercial instrument to improve life standards of the states and
citizens. In addition to that, trade is a way of benefiting from goods and service variety and is the
most important way to enhance firms’ economies and production activities in where they reside.
Since earlier times, people have developed and found trade routes, product and service
development processes, carriage and transportation modes, managerial and operational methods
and most importantly commercial cooperation partners.
In that context, I will create my final project about the commercial relationship between the
European Union and Turkey within the researching instruments I mentioned. While examining
the companies that still work with the European Union countries and I will try to benefit from
route and mode selections of these companies.

3.Türkiye
Turkey, commonly known as Türkiye, is a nation that enjoys a special geographic location
because it is split between Asia and Europe. It has served as a barrier and a bridge connecting the
two continents throughout its history. Turkey is located at the intersection of the Caucasus, the
Middle East, the Balkans, and the eastern Mediterranean. In terms of people and territory, it is
one of the bigger nations in the area, and its land area is larger than any nation in Europe. The
vast majority of the nation is located in Asia; it is made up of the rectangular Asia Minor
peninsula, also known as Anatolia (Anadolu), and, in the east, a portion of the hilly area
commonly referred to as the Armenian Highland. Turkish Thrace (Trakya), the last portion of an
empire that had included much of the Balkans, is located in the far southeast of Europe.The
country covers roughly 1,000 miles from west to east and between 300 and 400 miles (480 and
640 km) north to south. Turkey's borders are as follows: the Black Sea to the north, Georgia and
Armenia to the northeast, Azerbaijan and Iran to the east, Iraq and Syria to the southeast, the
Mediterranean Sea and the Aegean Sea to the southwest and west, and Greece and Bulgaria to
the northwest. Istanbul is its largest city and seaport, and Ankara serves as the nation's capital.

https://www.britannica.com/place/Turkey
3.1 Turkey’s Logistics Geography
Turkey is a country that has land on two continents with the Thrace Region (3%) in Europe and
the Anatolian Region (97%) in Asia. The Sea of Marmara and the Bosphorus are geographical
formations that separate Asia from Europe. Turkey has a total of 3000km (2019 measurements)
road connections and the majority of this connection is T.E.M (Trans European Motorway).
Most of the projects carried out in Turkey in recent years are also on transportation.
Turkey is also a peninsula country surrounded by seas on 3 sides, and these seas
(Mediterranean, Aegean Sea, Marmara and Black Sea) have a connection to the waterways
(Gibraltar and Suez), which are the connecting routes of important trade routes and the ocean. In
addition, the Dardanelles and Istanbul Straits are of great strategic importance, as they are the
only gateway to the open seas of the neighboring countries. Turkey is also a strategic logistics
base as it acts as a bridge to oil-rich neighbors and between Asia and Europe.

3.2 Türkiye’s Geostrategic Importance for EU

Turkey is the bridge between Asia and the Europe in the proper meaning of the word and in this
context, the delivery of raw materials and final products from both Asia and Europe to the
customer can be carried out optionally, even with only one logistics mode, thanks to TEM (Trans
European Motorway). Likewise, the Europe-Turkey-Asia route creates a suitable ground for the
fishyback intermodal transportation modal. For example, products departing from Europe can
reach Asia via Suez via the ports within the Turkish border upon request, or cargo can be
transported to the east of Turkey and then pass through the Suez Canal via the port agreed in the
East of Turkey.

3.3 Turkey's Infrastructure

 Infrastructure is the general name for all elements, materials and equipment used from the
beginning to the end of a process. It is also one of the most important elements of the production
process as it ensures that the targeted product comes out of production more effectively and efficiently. In
commercial terms, while the majority of transportation infrastructure such as tunnels, bridges, roads and
similar transportation infrastructure and energy infrastructure such as electricity and natural gas are
covered by the state, the costs of minor modifications that the company wants to have specific to the
company are covered by the company's own investments. In addition, since infrastructure works are
seen as a way to increase the long-term trade volume and increase productivity, all investments
made in this field increase the potential income that may arise in the future"Similarly, Munnell
(1990) found results supporting Aschauer's work in his study with national data, while in his
study with state data from 1970-1986, he determined that a 1 percent increase in public capital
increased national output by around 0.15.”

https://www.econstor.eu/bitstream/10419/83199/1/107-03.pdf

3.3.1 Highway Infrastructure in Türkiye

Road transportation is one of the most preferred modes of transportation worldwide due to its
low cost in short distances and its ability to deliver to places that other modes of transportation
cannot reach. Another reason for the preference of road transportation is that the wide road
network is comprehensive enough to deliver the product to the customer even in places where
other modes of transportation cannot reach, thus enabling combined transportation when needed.
In this way, the product can be planned and delivered in the fastest and least costly way.
Road infrastructure works in Türkiye began to be gradually formed with the proclamation of
the republic and considering the conditions of the period. In this context, in the first years of the
republic, 13,900 km of highways excluding bridge roads, reached 18,350 km with bridges. The
reason for the lack of road infrastructure at that time was the economic problems caused by the
First World War and the prevalence of the use of vehicles pulled by animals With the loss of the
effect of the war and the widespread use of motor vehicles, the importance given to the highway
increased and approximately 26,100 km more road connection was provided until the effects of
the next war, the Second World War, were felt in Türkiye.
Later, in order to respond to the increasing traffic, the "Fatih Sultan Mehmet Bridge", a project
whose foundation was laid in 1975 and completed in about 5 years, was added to the highway
connection. Again, in this period, not only the bridge works were given importance, but also the
first highway, the 24 km "Bosphorus Bridge-Ring Road", was opened. Later, in 1981, 14 km,
Gebze-İzmit and Tarsus-Pozantı highways were opened in 1984, and Kapıkule-Edirne highways
were opened in 1987. In this process, the length of the highway, which was 24 km at the
beginning, reached 241 km in 1990 and 2159 km as of 2015.
 3.3.1.2 Major Road Infrastructure Projects in Türkiye
 “Osmangazi Bridge and Izmir-Istanbul Highway
 Çanakkale Bridge and Highway
 Yavuz Sultan Selim Bridge (3rd Bosphorus Bridge) and Northern Marmara Motorway
 Eurasia Tunnel
 Gebze – Orhangazi - İzmir Highway (Including İzmir Gulf Crossing and Connecting Roads)
 North Marmara Highway (Including the 3th Bosphorus Bridge) Kınalı - Odayeri Section
 Ankara - Niğde Highway
 Menemen - Alaga - Çandarlı Karayolu
 Aydın Denizli Highway
Çeşmel-Erdemli - Silifke - Taşucu Highway Project Çeşmeli - Kızkalei Section
 Turkey Trans-European Transport Road Network (TEN-T)
 Transport Corridor Europe, Caucasus, Asia (TRACECA)
 Trans-European North-South Motorway Project (TEM)
 Eurasia Road Links (EATL)

ORAL Muhammet, AYDIN Fatih, Historical Development of Highway Transportation in Turkey, Karabük
University Geography Department, 257-266, 2018

Republic of Türkiye General Directorate of Highways / Important and Global Projects

CİĞERCİOĞLU Oğuz, The Effect of Transportation Infrastructure in Turkish Economy on Economic

Growth, Gaziantep University Journal of Social Sciences, 17 (2), 577-591, Submission Date: 24-01-2018,
Acceptance Date: 28-03-2018.

Highway Infrastructure in European Union

3.3.2 Seaway Infrastructures

Maritime has evolved in the hands of many civilizations since almost the beginning of history
and has developed itself many times from its earliest form until today. This development in the
maritime sector has generally pursued transportation, military and commercial purposes and has
tried to meet the demand for the sector by making breakthroughs in terms of marine vessels,
transportation methods and equipment, planning, strategy and operations according to the needs.
In addition, the excess carrying capacity of maritime transportation makes it highly popular
despite the fact that products enter delivery addresses relatively slowly compared to other modes.
Thus, since the amount of fuel consumed per product is low, it is both efficient and a sustainable
transportation method due to the low carbon footprint it leaves.
The most important reason for the maritime transportation sector to reach its current popularity
is the introduction of the steam engine produced by James Watt in the 18th century, which
enabled the ships that only sailed on inland seas to travel on the open seas and oceans and to
make deliveries to every point of the world. By the 19th century, thanks to these features, its
popularity increased rapidly and it became one of the most common transportation methods used
today. In Turkey, seafaring was initially used for military and domestic maritime trade, and in
1828, when the first steamship started to operate, it started to engage in foreign maritime trade
and started to use the resources at its disposal or new markets where it could supply the raw
materials of the goods it produced.

3.3.2. Seaway Projects in Turkey

 (1979-1983); An industrial zone for shipbuilding was created and developed in Tuzla.
 (1984-1989); It seeks at raising the merchant fleet's tonnage fast..
 (1990-1994); It seeks at raising the merchant fleet's tonnage fast.
 (1995-1999); The principal causes of the fall in orders were the elimination of the VAT
support and the fact that Turkish shipowners were significantly impacted by the freight
crisis.
 (2001-2005); According to the shipbuilding industry, focus will be placed on building
coasters in order to capture a portion of the global shipbuilding market and the domestic
demand generated by Turkey's merchant fleet, which urgently needs to be revitalized and
refurbished.
 (2007-2013); Taking into consideration the outcomes of the Turkish Shipyards Master
Plan, new shipyards will be established, primarily in the Ceyhan region, in order to
design and manufacture military and commercial ships in Turkish shipyards with a high
domestic contribution rate and to renew the Turkish Merchant Fleet.

KOL Bihter, The Importance of Maritime Transportation in Turkey’s Foreign Trade and Its Problems,
Dokuz Eylul University Institute of Social Sciences Department of Business Administration International
Business Administration Program
Foreign Trade and Seaway Transportation -
https://acikerisim.deu.edu.tr/xmlui/bitstream/handle/20.500.12397/10879/253601.pdf?
sequence=1&isAllowed=y

Seaway Infrastructure in European Union

3.3.3.1 Railway Infrastructure

Compared to other modes of transport, the demand for rail transport is generally based on the
transportation of heavy goods, which are heavy in mass and cheap in cost. In addition, it
provides a reasonable transportation experience because it is environmentally friendly, reliable
due to minimal human intervention, minimally affected by weather and traffic conditions, and
has a long-term fixed price guarantee. Despite these advantages, it is only used in certain regions
due to its high investment costs and the fact that it is only used in regions with infrastructure.
Rail transportation was used in England in the 1700s to transport coal from the mines, but it was
non-motorized and covered only 200 miles across the whole of England. Railway transportation
and the production of the steam engine gained great importance worldwide with the start of the
Industrial Revolution (1760) and pioneered the use of the steam engine in modes of
transportation.
In our country, the importance given to the railroad started in the early 1802s and with the
influence of the Tanzimat Edict, the work on the establishment of the railway network started. In
addition, since all of the railway networks established in our country until the Republican Era
were established with the investments of foreign companies, these railways are very low standard
and technically inadequate. Today, the length of lines under the management of the Turkish
State Railways (TCDD) has reached 8452 km. With the addition of 1934 km of secondary roads,
we can calculate the length of railways under the control of TCDD as 10386 km. We can
examine all railway networks in Turkey as follows:

Meserret NALÇAKAN, THE IMPORTANCE OF RAILWAY TRANSPORTATION IN THE

TRANSPORTATION SECTOR FOR THE TURKISH ECONOMY AND ANALYSIS OF TURKISH
DEMAND FOR DOMESTIC RAILWAY TRANSPORTATION BY ECONOMETRIC MODEL

1. Railways in the European part of Turkey

Istanbul-Edirne railway: Together with the Kırklareli-Branch line, its length is 364 km. It is
connected to the European railway network via Bulgaria (Plovdiv-Sofia) and Greece
(Thessaloniki).
2. Railways in the Asian part of Turkey
 A. The main axis of our railways:
- Haydarpasa-Eskisehir railway. This road divides into two branches in Eskisehir.
B. Lines connecting these two branches of the main axis:
- Kayseri-Nigde-Ulukisla railway. - Malatya-Çetinkaya railway
C. Lines connecting the main axis to the Black Sea coast:
- Irmak-Cankm-Zonguldak railway
- Sivas-Samsun railway (This road was extended to Çarşamba).
D. Lines connecting the main axis to the Mediterranean coast:
- Yenice-Mersin railway
- Toprakkale-Iskenderun railway
E. The line extending from Lake Van to the Iranian border following the valley of the
Murat River
- Yolçatı-Genç-Muş-Tatvan-Van-Özalp-Çimenova-Kotur line: This line later merges with the
Iranian railroad network.
F. The line connecting with the Syrian and Iraqi railroads:
- Narlı-Gazi Antep-Ceylanpınar-Nusaybin line. There is a branch on this line to M ardin.
G. Our Western Railways:
- Izmir-Manisa-Afyon railway. This line joins the main axis in Afyon. Railway
Transportation in Turkey 175
- Manisa-Balıkesir-Bandırma railway.
- Izmir-Aydın-Karakuyu-Eğirdir railway. This line has branch lines to Tire. Ödemiş, Söke,
Denizli, Çivril, Isparta and Burdur.
H. New lines connecting the Western Railways to the Main Axis:
- Balıkesir-Kütahya railway. - Karakuyu-Afyon railway.

Selen, H.S. 1943, “Türkiye’nin Yol Sistemi”, Türk Coğr. Der. Sayı:HI-IV. s:359. İstanbul.

1990-1994 TCDD İstatistik Yıllığı. Sayı:105, s:14.

1990-1994 TCDD istatistik Yıllığı, s:40.

3.3.3.2 Iron Silk Road

The Silk Road has managed to keep the trade between Asia and Europe alive by constantly
renewing itself from the past to the present and has ensured that the produced goods and raw
materials reach the delivery destination by various vehicles. The silk road trade, which continues
today, has aimed to deliver by using the "Middle Corridor" on which Turkey is located, with the
investments made to increase the economic volume of China. With its strategic location on both
the Iron Silk Road and the Maritime Silk Road, Turkey acts as a critical bridge for goods to pass
through to the European Union. The goods coming out of China first stop by Kazakhstan and
Azerbaijan, and then they finish their tour by making Kars-Istanbul voyages. Likewise, the goods
coming by sea play a role in transporting products to Eastern Europe by using the Marmara Strait
after passing the Suez Canal. In this way, it brought diversity to the European Union imports and
hosted a fast supply corridor for raw material supply. In addition, it has had the opportunity to
grow its economy by processing the raw materials it supplies and delivering it to China in the
same way.

3.3.3.3 SWOT Analysis of Iron Silkroad

TURAN-SAM: TURAN Stratejik Araştırmalar Merkezi * TURAN-CSR: TURAN Center for Strategic
ResearchesTURAN-SAM Uluslararası Bilimsel Hakemli Dergisi; ISSN: 1308-8041, e-ISSN: 1309-4033; Cilt:
8/İLKBAHAR,Sayı: 30TURAN-CSR International Scientific Peer-Reviewed and Refereed Journal; ISSN:
1308-8041, e-ISSN: 1309-4033; Volume: 8/SPRING, Issue: 30

8https://www.ceeol.com/search/article-detail?id=477885 --- Demir ipekyolu SWOT analizi

http://tucaum.ankara.edu.tr/wp-content/uploads/sites/280/2015/08/tucaum6_9.pdf -
tarihi gelişimi
Railway Infrastructure in European Union

https://www.proquest.com/openview/4621ad558e79d8ebad2c9cb806db1be2/1?pq-
origsite=gscholar&cbl=2026366&diss=y

3.3.4 Airway Infrastructure

Civilizations have developed many vehicles to get from one place to another since ancient
times, and with this increasing diversity, they have acquired modes of transport that can provide
transportation on any surface. The airplane, which is the fastest and most agile of these
developing modes of transportation, was invented by the Wright brothers on December 17, 1903,
and thus mankind has stepped into a new era in terms of transportation. The airplanes, which
were initially capable of short flights, were later developed and were able to fly at long ranges.
Later, with the end of the war, it started to be used in the field of transportation and
transportation.
In our country, the development of airline transportation was initially realized mostly through
state investments, and its development was also ensured under state supervision. Later, due to the
state's need for companies governed by private law, Turkish Airlines was granted the right to
establish a joint stock company. Thanks to this law, BOAC, one of the most important airline
companies in the UK, became a shareholder in Turkish Airlines, which not only provided capital
for the establishment of the fleet but also started to see the effects of the aviation culture in the
UK in our country. Subsequently, the USA continued to provide assistance intermittently from
1960 to 1990, thus accelerating the development of our country's aviation sector. By the early
1980s, liberalization of the domestic market was targeted and many airlines were established and
started to operate.
The most important factor in the use of road transportation is that it is much faster and more
reliable than other modes of transportation by eliminating geographical effects in delivering the
product to the customer. Despite this advantage, due to high transportation costs, it is mostly
used for products that are small in volume, expensive in price or perishable.

3.3.4.2 Some Airline Companies with Long-Term Operations in Turkey

YALÇINKAYA, Akansel, The History of the Turkish Airline Transportation Sector

Development and State Interventions (1933-2006), CTAD, Year 15, Issue 29 (Spring 2019),

s. 405-442.

Airway Transportation -https://ctad.hacettepe.edu.tr/15_29/15-yalcinkaya.pdf

Airway Infrastructure in European Union

3.3.5.1 Pipeline Transportation

Taking into account the disadvantage of installation costs, pipeline transportation is the safest
and most uninterrupted way of transporting raw materials used to meet energy needs. It is also of
great environmental and social importance as it does not cause traffic problems and can be
transported without the need for other modes. Turkey is neighboring 64.4% of total oil reserves
and 73.2% of total natural gas reserves. The distribution of oil among these raw materials is as
follows: 48% in the Middle East, 9% in Europe and Eurasia and 7.7% in Africa. The distribution
of natural gas reserves is as follows: 43.2% in the Middle East and 30% in Europe and Eurasia.
Apart from military pipelines in Turkey, the length of pipelines used for gas and oil
transportation is 15.5 thousand km. Of these, 3,332 km are used for oil transportation, while
12168 km are used for natural gas transportation. In percentage terms, 13% of the pipelines are
used to transport oil and 87% to transport natural gas.

Hulusi AYDEMİR, PIPELINE TRANSPORT OF TURKEY: GENERAL SITUATION,

INTERNATIONAL COMPARISON AND OBJECTIVES WITH RECOMMENDATIONS FOR
POLICY, Cilt/Vol 18, No/Number:3, Sayı/Issue:54, Sayfa/Page:399-408, EYLÜL 2016 / Sep 2016

https://dergipark.org.tr/en/download/article-file/587983
https://ulk.ist/media/kitap/IV-UKODTLK/enerji-lojistiginde-boru-hatti-tasimaciligi-turkiye-icin-
bir-degerlendirme.pdf

3.3.5.2 Major Pipeline Infrastructure Projects in Turkey

 Blue Stream Gas Pipeline

 Baku-Tbilisi-Erzurum Natural Gas Pipeline
 Russia - Turkey West Natural Gas Pipeline
 Eastern Anatolia Natural Gas Main Transmission Line
 Turkey-Greece Natural Gas Interconnection (ITG)
 Trans-Anatolian Natural Gas Pipeline (TANAP)
 Turk Stream Gas Pipeline Project
 Baku – Tbilisi - Ceyhan Oil Pipeline
 Turkey Iraq Oil Pipeline

Prof. Dr. Fehim BAKIRCI, Arş. Gör. Ebubekir KARABACAK, Cihat SARIGÜL, PIPELINE
TRANSPORTATION IN ENERGY LOGISTICS:AN ASSESSMENT FOR TURKEY, IV.
INTERNATIONAL CAUCASUS-CENTRAL ASIA FOREIGN TRADE AND LOGISTICS CONGRESS
September, 7-8, Didim/AYDIN

Pipeline Infrastructure in European Union

Trans-European Transport Network (TEN-T)

Objectives
The creation of a cogent, effective, multimodal, and high-quality transport infrastructure
across the EU is facilitated by the EU's trans-European transport network (TEN-T) program. It
connects metropolitan nodes, maritime and inland ports, airports, and terminals via trains, inland
waterways, short sea transport routes, and roadways.
It promotes efficient people- and goods-movement, guarantees access to jobs and services, and
promotes commerce and economic expansion. It improves the economic, social, and territorial
cohesion of the EU and establishes borderless transportation networks devoid of physical
chasms, traffic jams, or weak connections. Additionally, it seeks to improve network safety and
resilience while reducing the impact of transportation on the environment.
The Regulation (EU) No. 1315/2013 is the foundation of the TEN-T policy. This Regulation is
currently being updated to align with the European Green Deal and the Sustainable and Smart
Mobility StrategyE and to make the network greener, more efficient, and more robust.

Network Structure
The trans-European transportation network was created using a strategy that is objective. It has
two levels, the core and the complete network, as described in the existing rule.
By 2030, the core network, which connects the most significant nodes and cities, must be
finished. The highest criteria for infrastructure quality must be met.
All regions of the EU are connected by the extensive network, which must be finished by 2050.
The extended core network should be implemented as a third layer with the amendment of the
TEN-T Regulation and should be finished by 2040 as an interim goal.

3.3.2.1 Motorways of the Sea Peoject

The "Motorways of the Sea" concept intends to bring new multimodal maritime-based
logistics chains in Europe, which should enhance our current transportation system over the next
years. These networks should be more profitable than transportation that just uses roads because
they are more sustainable. Thus, Motorways of the Sea will enhance market accessibility across
all of Europe and provide relief for our overburdened European road network. In order to achieve
this, a more effective use must be made of not just our maritime transportation resources but also
of our potential in the areas of rail and inland waterways as a whole.
The 2001 Transport White Paper, European Transport Policy for 2010: Time to Decide,
proposed the idea. The creation of "Motorways of the Sea" was suggested by the European
Commission as a "true competitive alternative to land transport." The White Paper also stipulated
that money should be made available for the development of the Motorways of the Sea and that
they should be included in the trans-European network (TEN-T).
 3.3.2.2. The Establishment of four Corridors for Initiatives of Importance to Europe

 By 2010, the Baltic Sea will be connected to Central and Western European countries by
a motorway, including a route across the North Sea/Baltic Sea canal;
 Motorway of the Sea of Western Europe (by 2010), connecting the North Sea and the
Irish Sea with Portugal and Spain via the Atlantic Arc;
 By 2010, there will be a sea of south-east Europe highway linking the Adriatic Sea, the
Ionian Sea, and the Eastern Mediterranean, which includes Cyprus;
 By 2010, the western Mediterranean will be connected to the Motorway of the Sea of
South-East Europe by the Motorway of the Sea of South-West Europe, which will link
with Malta and the Black Sea.

3.3.2.3 A Diagram Showing the Sea's Highways

A European Coordinator for the Motorways of the Sea role was also introduced in the 2001
Transport White Paper. This role's responsibilities include facilitating communication between
Member States, assessing the program's progress as a TEN-T Priority Project, and providing
recommendations for its efficient growth and implementation. A yearly report on the success of
the Motorways of the Sea projects is also created by the Coordinator.
Five Task Forces covering the Baltic Sea, North Sea, Atlantic, Eastern Mediterranean, and
Western Mediterranean Sea were established in 2006. Their goal was to make it easier to
undertake MoS projects by giving Member States the coordination they need to find and assess
joint project proposals as well as plan and develop initiatives in their respective fields.
The Motorways of the Sea task teams have created master plans that serve as a framework for
the selection of Motorways of the Sea projects through requests for proposals and their
subsequent deployment.
The significance of the "Roadmap for a Single European Transport" in the 2011 Transport
White Paper was emphasized once more. The Motorways of the Sea are now defined by the 2013
TEN-T Guidelines (Regulation (EU) No 1315/2013) as the marine component of the trans-
European transport network, which shall contribute to the creation of a European maritime space
devoid of barriers and shall comprise:

 Marine connections between ports in the comprehensive network's marine sector or

between a port in the comprehensive network and a port in a third nation when such
connections are crucial to the Union's strategic goals;
 Ports, freight terminals, logistics platforms, and freight villages outside the port area
but connected to port operations via information and communication technologies
 (ICT), such as electronic logistics management systems, and administrative and
customs processes in at least one Member State;
 infrastructure for easy access by land and water.
As the successor to the Trans-European Transport Network Executive Agency (TEN-T EA),
the Innovation and Networks Executive Agency (INEA) oversees the technical and financial
implementation of the program while the Commission defines the policy aspects of the
Motorways of the Sea from which the funding eligibility criteria derive.

4. Trade in Türkiye
Trade includes all sales and logistical activities involving unfinished, semi-finished, and
finished goods from nations to consumers in new markets, as well as from these markets to fill
the demand for unmet raw material needs in production. Turkey can take use of the raw material
supply in Asia, extend its production line, and access the wide range of customers in Europe. It
can also distribute the raw materials it produces and processes to Europe as finished goods.
Turkey serves as a geographical bridge between Asia and Europe. Turkey is currently classified
as a developing nation and is also dealing with severe inflation.

4.1 Inflation Rate in Türkiye and EU Releation

The constant growth in all goods and services within a nation is known as inflation. For
instance, there must be a continuous increase in prices for all goods and services in order to
establish an inflation rate of 1% every month. However, we need to consider the prices of all
goods and services entering the country, not just the prices of specific products in specific
markets, in order to label price increases inflation.
The public and commercial organizations find it difficult to maintain their operations as a result of these
price rises, which disrupts production and consumption and, in turn, economic growth and volume. The
inflation rate is increasing due to a variety of variables. Some of reasons include a lack of investment
because people don't trust the government, the currency depreciating, relying on other nations for
production and consumption, political issues, etc.
There are two significant issues that jump out when we assess these issues in the context of the
relationship between Turkey and the UN. One of them is that Turkey's inability to meet EU standards as a
result of its economic situation causes a breakdown in trade relations with the EU, and the other is that
Turkey's social, economic, and political systems will differ from those of the EU due to differences in
opinion.

Türkiye Cumhuriyeti Merkez Bankası, Enflasyon, 2004

https://www.tcmb.gov.tr/wps/wcm/connect/b62e1fb7-ebc1-4922-99dc-b3ba23320b9f/enflasyon.pdf?
MOD=AJPERES&CACHEID=ROO

4.1.1 Sociopolitical Cause and Effects

The idea of social policy, which originated on the level of the nation-state and encompasses
various social issues, has been a major point of dispute and conflict amongst political groups.
The processes of globalization and European integration both maintain this aspect of social
policy. The idea of social policy, which originated on the level of the nation-state and
encompasses various social issues, has been a major point of dispute and conflict amongst
political groups. The processes of globalization and European integration both maintain this
aspect of social policy.
Many social policy-related issues in the European Union are still handled at the state level, and
social and economic advancements result in more Union regulations in this area. In this regard,
social policy is a particularly active field of EU law that is growing as a result of directives and
regulations.
The Treaty of Rome, which addresses problems including worker mobility, settlement rights,
migrant workers' social protection, the process of economic integration, and most notably the
operation of the common market. A European Social Fund was formed at the same time that
special attention was made to equal pay for equal work for men and women. Qualified majority
voting, however, made it simpler to make judgments in this area. and sparked significant
developments. --- TARAFLAR ARASINDAKİ SOSYAL ANLAŞMAZLIĞIN TİCARETE
YANSIMASI EKLENECEK ---

https://www.acarindex.com/dosyalar/makale/acarindex-1423938562.pdf

4.1.2 Economic Cause and Effets

Turkey has been constructing strong economic institutions with a solid infrastructure and the
capacity to resist crises for almost three decades, both through development and reform measures
to join the European Union. Along with these initiatives, attention has been drawn to structural
modifications in the capital markets, and new regulations have been introduced to set the
necessary benchmarks. Turkey and the European Union have had consistent, close
communication in the area of economic relations, and Turkey has actively monitored economic
activities within the Union. Activities related to the Customs Union began very early in the
European Union. Within the European Union, the Customs Cooperation Council was established,
and the number of Customs Union members grew over time. As a result, the European
Community unilaterally eliminated quotas for most items and reduced customs taxes to zero on
industrial commodities and processed agricultural products imported from Turkey. Thus, the
European Community unilaterally gave Turkey a significant opportunity to expand its exports
and thus speed up economic growth by opening the market to Turkish exporters. However, over
the course of the following 22 years, Turkey was required by the Additional Protocol Agreement
(1973) to gradually remove customs duties and quotas on industrial goods and processed
agricultural products imported from the European Community. The Additional Protocol was
without a doubt a time-consuming, challenging, and demanding process. When it came to
carrying out its commitments under the Additional Protocol Agreement with the European
Community, Turkey had significant challenges. The fundamental cause of this was Turkey's
various periods of economic, political, social, military, military, and cultural difficulties. In
particular, because of poor and incorrect economic policies, the nation's economy has been
progressively heading towards a crisis. Despite all the bad press, although with ups and downs,
relations between Turkey and the EU have persisted.

The European Union's shared standards strategy is implemented in Turkey's industrial sector.
The common standards policy has been the subject of harmonization studies, and annual revision
studies are conducted to ensure that technical hurdles do not exist for Turkish industrial products
in the EU Single Market. According to the common standards policy, certified and specialized
institutions determine industrial product standards and conduct testing and certification
procedures (conformity evaluation and marking).
Within the framework of the EU's common standards policy, the necessary laws and regulations
were passed in this situation, and the Turkish Accreditation Agency was established. The
regulation on CE conformity marking is one of the rules on the harmonization of technical
legislation. A product having the CE designation can move freely and unhindered within the
European Union, as is well knowledge. It is obvious that the economic consequences of the
Customs Union have had a significant impact on Turkey's relations with the European Union and
that elements that affect and are influenced by one another have been at play. The Customs
Union's main static effects have primarily taken the shape of trade-diversionary and -creating
effects, and this process has been quick and expanding at the same time.

Nur DİLBAZ ALACAHAN & Yağmur AKARSU, Çanakkale Onsekiz Mart University Gökçeada Vocational
School Foreign Trade Department, THE COMMON FOREIGN TRADE POLICY OF THE EUROPEAN
UNION EFFECTS ON THE TURKISH ECONOMY

https://heinonline.org/HOL/LandingPage?handle=hein.journals/
jcmks47&div=146&id=&page=

4.2 Türkiye GDP and EU Releation

As in all other areas, Turkey's economic structure is dynamic. Due to its imports and exports,
Turkey's daily, weekly, monthly, and yearly financial activities are quite active. Money markets
and competition laws, which the European Union had previously criticized and which Turkey
had failed to persuade the European Union of, are now operated under a more restrained system
that is recognized throughout the world, but especially in the European Union, as a result of the
Copenhagen criteria and negotiations of 1993. To promote more stable operation of the money
markets, efforts have been made to ensure the independence of the Central Bank in money
markets and the creation of the Banking Supervision and Regulation Board. In the area of
industrial activity, SMEs were given particular consideration. Investments were encouraged,
especially in the industrial sector. Again, following the Customs Union, industrial activities have
seen an increase in Turkey's adherence to the "single market" system, which is significant in the
EU and used in industry developments. With increasing export numbers in a cutthroat market,
the growth of the Turkish industry has drawn attention throughout time. In instance, the Turkish
economy experienced exceptional growth rates during 1996 and 1997, reaching 8.1%. This
growth rate was attained in the first year, and the Customs Union's advantages were immediately
apparent. Turkish businesses, which have evolved and grown over time, are now in a quality and
efficiency race with multinational corporations, particularly in the food and textile industries,
where they have both subsidiary and main branches, as well as in the iron and steel and
automotive industries, where they have subsidiary branches. It has become feasible to identify
the products of these enterprises as export products, particularly in the markets of Africa, the
Caucasus, the Middle East, and European nations. Despite Turkey's lack of membership in the
EU, export numbers have been rising steadily.

Turkey's exports in 2014 were dominated by the automotive industry, which brought in over 22
billion dollars. Chemicals came in second with 18 billion dollars, followed by ready-to-wear
garments and apparel with 19 billion dollars.In 2014, we exported goods worth more than $157.6
billion. In 2014, our exports to the EU climbed by 11.7%. The extent of the European Union's
influence over the Turkish economy was another development in 2014. The Middle East
countries, with 19.3%, are the second country group to whom we export the most, according to
Nihat Zeybekçi, Minister of Economy, in his remarks at the "2014 Export and Economy
Evaluation and Expanded Presidents' Board Meeting." Again, "The top 5 export destinations in
2014 were Germany, Iraq, England, Italy, and France, in that order. Exports went up 11.3% to
Germany, 12.6% to the UK, 7.4% to Italy, and 1.3% to France. According to TIM's report, it is
noteworthy that four of the five countries with the highest exports are European Union countries"
(TIM, January 1, 2015, Report).
Table 1 shows the total exports of Turkey, which rose from 23,224,465 to 157,642,154 USD
between 1996 and 2014. In other words, there was a 579% gain. In 2014, Turkey's exports to the
European Union made up 43.5% of all its other exports. As can be seen, Turkey exports a
significant amount of goods to the EU.
According to Table 2, imports from the European Union exceeded 28 billion dollars in 2000, up
from more than 24 billion dollars in 1996. By the end of 2002, it had decreased to $25 billion. In
the period from 2002 to 2014, import values have been steadily increasing. Over 88 billion
dollars worth of imports were made into the European Union between 1996 and 2014, a 265%
increase.

4.2.1 Effects of the Customs Union

4.2.1.1.1 Static Effects
The customs union has different effects on the economy of the member countries in every area
when we think of economic concepts as the cogs of a wheel. The trade-creating and trade-
diversionary effects of a customs union are two important static effects. The trade-creating effect
raises the nation's income, while the trade-distorting effect has a detrimental effect on that
income.
 When we consider economic ideas as the cogs of a wheel, the customs union has varying effects
on the economies of the member nations in every sector. A customs union's trade-creating and
trade-diversionary effects are two significant static effects. The country's income rises as a result
of the trade-creating effect, but the income is negatively impacted by the trade-distorting effect.
The welfare and consumption of a nation grow when its income rises, while these two factors
drop when its income falls. This emphasizes the significance of the customs union's static
impacts, which include its trade-creating and trade-diversionary effects.
Similar in some ways to trade-creating or trade-distorting impacts, positive or negative
production effects refer to changes in the availability of the raw materials and semi-finished
goods required for production. Customs fees between members are either eliminated or
substantially lowered with a customs union. For instance, a country A that imports a good X with
a unit price of 100 units from the union's members at a price of 120 units with a 20% customs
duty won't have to pay the customs duty because it is a member of the union and can instead buy
the good X for 100 units, which will help the economy's production. If we use the opposite
scenario as an illustration once more, a country With the introduction of the single customs tariff
with the union's membership, a company importing good X at a cost of 200 units from a nation
outside the union will have access to good X at a higher price. If country A cannot obtain good X
from inside the union and the union levies a 20% customs charge on other nations, then good X
will need to be imported at a cost of 240 units, which will have a negative effect on production.

4.2.1.2 Dynamic Effects

Customs unions produce long-lasting, ongoing impacts in addition to static effects. Customs
unions' "Dynamic Effects" are these persistent, long-term effects. In other words, GDP is
affected by long-term economic developments brought on by the expanding market following the
economic union.
Businesses that expand into larger markets through the Customs Union initially find it
challenging to compete in these markets, but over time, thanks to their technological
infrastructure, the size of their capital, and their capacity to use their resources effectively, they
lower the cost of the goods and services they produce and thereby become more competitive.
Positive welfare level effects are indirectly caused by enterprises being more competitive and by
the costs of the goods and services they provide falling. Businesses that served a narrower
market prior to unionization now serve a larger market. The market is expanding as a result of
the manufacturers of economic value, which also makes it easier for the products to reach
consumers. Economic value creators are more certain that they can readily sell the new things
they generate as the market grows. As a result, they progress technology by expanding their
R&D spending and updating their technological foundation to manufacture new commodities.
The technological architecture of businesses are modified to meet modern demands, which
boosts their productivity, profitability, and competitiveness.

The industry grows as a result of the influence of external economies, and sectors that supply
raw materials and intermediate goods grow concurrently. Other advantages provided by external
economies include the adoption of cutting-edge methods, the accessibility of affordable, high-
quality inputs, skilled labor, and the completion of logistics infrastructure facilities like energy,
roads, and communication. Negative effects of the external economies impact include
environmental degradation brought on by industrial expansion, resource depletion due to
excessive demand for raw materials, inefficient resource utilization, and inadequate
infrastructure.

The ability of the customs union member countries to draw capital and investment from other
union members, especially non-customs union countries, is another crucial problem in terms of
dynamic consequences. Once a nation joins the union, it gains benefits in a variety of areas.
Third parties, or nations outside the union, who wish to indirectly profit from these benefits,
direct their capital and investments to the member nations in order to take advantage of the
benefits the union brings. The economies of the member country or countries benefit from this.

Doç. Dr. Mesut DOĞAN, ECONOMIC RELATIONS BETWEEN THE EUROPEAN UNION AND
TURKEY, MARMARA GEOGRAPHY JOURNAL ISSUE: 32, JULY - 2015, PP.306-325 ISTANBUL -
ISSN:1303-2429 E-ISSN 2147-7825

https://dergipark.org.tr/en/download/article-file/1359119
https://dergipark.org.tr/en/download/article-file/82282

4.2.2 Türkiye En Çok Hangi Ülke ile Ticaret Yapıyor

https://data.tuik.gov.tr/Bulten/Index?p=Dis-Ticaret-Istatistikleri-Ocak-2022-45536
4.3 What Türkiye Imports and Exports?

Turkey is the sixth-largest trading partner of the EU, accounting for 3.3% of imports and
exports combined of goods between the EU and the rest of the world in 2022. Also the EU is by
far Turkey's biggest trading partner for goods. In 2022, 41% of Turkey's exports of products
were made to the EU, while 26% of its purchases of goods were made from the EU. In 2022, the
EU and Turkey had a combined trade in goods of €198.1 billion (3.6% of the EU's overall
commerce with the rest of the world). Textiles accounted for the majority of the EU's €98.6
billion worth of imports from Turkey (17.7%), followed by transport equipment (17.3%), basic
metals and products (16.8%), and machinery and appliances (15.8%). Total exports from the EU
to Turkey were €99.6 billion. They were dominated by base metals and items (€13.1 billion),
chemicals (€13.1 billion), transport equipment (€17.5 billion), machinery and appliances (€25
billion, 25.1%), and articles made of base metals. 2021 saw €24.2 billion in total services trade
between the EU and Turkey, or 1.2% of the EU's overall services trade with the rest of the world.
Both the EU's exports and imports of services totaled €12.8 billion, ranking them as the 12th and
16th largest service trading partners in the world, respectively. Transport (€4.7 billion, 41.2%),
travel services (€3.9 billion, 34.2%), and ICT services (€2.7 billion, 21.8%) are the top two
services that the EU exports to Turkey and imports from Turkey, respectively.
In addition, when we analyze Turkey's import and export partners in the market, we can see
that European Union member countries have the largest export and import volume with Turkey.

https://www.tgdf.org.tr/wp-content/uploads/2022/05/TGDF-2021-Dis-Ticaret-Raporu.pdf

4.3.1 Commodities
4.3.2 Semi-Finished Goods
4.3.3 Finished Goods
 4.3.4 Services
4.3.5 What Türkiye Imports Depending on Transportation Modes

4.3.6 What Türkiye Exports Depending on Transportation Modes

4.4 The Actual Problem Areas in Turkey-EU Customs Union

Some claim that the Turkey-EU Customs Union (CU), which has drawn heavy criticism and
scrutiny since it went into effect, binds Turkey's hands and renders it dependent on the EU
unilaterally by placing it under obligations (Somuncuolu, 2002; Manisal, 2009). It has also left
the Turkish economy with many issues, particularly the foreign trade deficit (ATO, 2007; Dura,
2010). Additionally, it has been asserted that the EEU would impede Turkey's application for full
EU membership. As a result, the EU now has duty-free access to a sizable and beneficial market
with a population of roughly 75 million thanks to the establishment of an EEU with Turkey
(Gümrükçü, 2002: 151). This prompted the EU to think about keeping Turkey within its own
sphere of attraction by restricting the partnership relationship to CU rather than incurring
additional costs (especially in terms of free movement of workers and financial aid) by making
Turkey a full member, to which it already had duty-free access to its markets (Zen, 2002: 143).
(Zsoy and Zsoy 2006: 338).
On the other hand, it is also possible to discuss an opposing perspective, which affirms that the
EE relationship underpins the fact that Turkey has a functioning market economy and that its
economy has attained a competitive structure, as stated in Turkey's progress reports (European
Commission, 2012: 41). In this regard, it can be argued that the Turkish industry, which was
exposed to foreign competition through CU, increased productivity and quality in a number of
industries to become more competitive internationally (Morgil, 2003: 110). Additionally,
Turkey's alignment with EU technical standards has improved consumer protection, given
companies access to a larger market, and allowed them to acquire low-cost, high-quality inputs.
(2011) (Hatipler, p. 28) Finally, the EU has made it possible for practices relating to intellectual
and industrial property rights to be established. As a result, the EEU aided in Turkey's integration
into the EU and eventual full membership (TÜSAD, 2003: 121).
4.4.1 Consultation and Decision Making Mechanism

Turkey has been forced to embrace a variety of common policies, notably trade policy, as a
result of the Customs Union. However, taking part in collaborative decision-making is essential
for a common trade policy involvement. Turkey is currently not a full member of the EU, hence
it is not able to participate in the Trade Policy Committee, which is the body that makes
decisions about the common trade policy. Since these concerns are decided by a Committee in
which Turkey does not participate, they are also intimately tied to the country's international
economic relations. In reality, a number of "decision-making and consultation procedures" in
sectors directly connected to the operation of the EEU were adopted by Decision 1/95. The
Decision states that when the European Commission drafts new legislation in areas connected to
the Customs Union and consults with Member States' experts in this area, it will formally consult
with Turkish experts.
However, when member state experts are consulted in accordance with Article 55, the
Commission is not required to formally consult Turkish experts, and even though this issue is
frequently brought up at meetings of the Customs Union Joint Committee, the necessary action is
not taken (Başbakanlk, 2011). While the legal framework for participation in technical
committees is provided by Articles 59 and 60 of the Customs Union Decision, there are
restrictions on this participation. Only as an observer, Turkey is permitted to participate in 17 of
the Commission's roughly 450 technical committees. This hurts Turkey's ability to keep track of
how the Customs Union operates within the EU, receive timely and consistent information about
legislative changes, and become familiar with the necessary institutional framework (IKV,
2012).

4.4.2 Free Trade Agreements

 Due to the crisis and the blockade of the Doha negotiations, the EU, which had pushed policies
for the liberalization of global trade under the World Trade Organization (WTO), modified its
trade strategy and sought to accomplish the objectives it could not with the WTO through FTAs.
In order to increase its trade capacity, boost its export numbers, particularly in industries where it
has an advantage, and recover from the effects of the crisis, the EU has accelerated its efforts to
sign FTAs with developing countries with high growth rates, particularly with Asian countries
(ntepe, 2011). This is where the issue really starts for Turkey.
In this situation, Turkey's commitment to abide by the Community's Trade Policy is governed
by Article 16 of the OECD 1/95. This Article requires Turkey to abide by the Community's
preferential customs system. Both independent regimes and preferential trade agreements with
third nations are covered by this harmonization. As a result, Turkey must abide by the FTAs that
the EU has negotiated with outside parties. As a result, Turkey must obtain permission from the
EU before signing an FTA with a nation with which the EU has not already done so (Karakaş,
2002; Mercan, 2013). Turkey cannot participate in the EU's decision-making processes,
articulate its priorities, or participate in decisions because it is not a full member of the EU
(Kutlay, 2011: 3). So, according to Dilemre (2010) on page 64, "Turkey has to enter into FTAs
whose timetables, scope, and content are determined between the EU and the relevant third
country, which are concluded as a result of negotiation processes in which Turkey is not
involved and its sensitivities are not taken into account, and which directly affect Turkey in
terms of their results."
Additionally, Turkey cannot immediately join the FTAs that the EU has negotiated with
outside nations, and the deals cannot be finalized concurrently (Kutlay, 2011: 3). Additionally,
there is no requirement that the pertinent third nations reach a similar arrangement with Turkey.

4.4.3 Visa Application

While it is now possible for citizens of EU member states to enter Turkey without a visa or to
do so quickly and for a relatively low cost at the border, this is not the case for Turkish nationals.
Today, Turkish nationals who want to visit EU nations must pay astronomical visa fees and
endure a lengthy application process. Businessmen and HGV drivers are particularly impacted
by the Customs Union. Although the EEU permits the free movement of products, persons who
trade and transport these goods face barriers such visa requirements (Kabaaliolu, 2010: 51–54).
Prior to other EU members, Germany was the only member state to impose visa restrictions on
Turkey. Through Regulation 539/2001 of the Council of the EU and later revisions to this
Regulation, the Union included Turkey to the list of nations to which Schengen visas would be
applicable as a result of these developments (Baykal, 2009:8).
Turkish businessmen have a number of challenges due to visa regulations imposed by EU
nations. The requirement of 20 or more documents by EU consulates to obtain a visa, the
presence of documents that violate the privacy of business and private life (such as the original
and photocopy of a bank card, title deeds, driver's licenses, documents outlining all assets owned,
credit card account statements), and visa fees of €70–80 (including additional fees like those paid
to the intermediary institution and bank co.) are among the most frequently voiced complaints.
The practice of requiring businessmen to receive an invitation letter from another businessperson
in the EU in order to obtain a visa, on the other hand, is anti-competitive and unjust.
Additionally, businesspeople are prevented from taking part in events like fairs, tenders, and
business meetings in EU nations because their visa requests were rejected for a variety of reasons
or because they were unable to get the visa in the allotted period. As a result, Turkish
businesspeople find it impossible to retain their current business relationships, let alone develop
new ones, and visa restrictions unfairly compete with their colleagues in the EU and other
nations. surroundings (IKV, 2010). It might be argued that this inequality is furthered by the fact
that businessmen with EU citizenship can enter Turkey without a visa or by paying €15 at the
border and without the need for any further paperwork (Zsöz, 2013) Not only do businesspeople
suffer from the EU countries' visa policies; truck drivers, academics, journalists, and students are
also wrongfully treated at consulates and subjected to onerous restrictions for obtaining visas
(IKV, 2010).

4.4.4 Transportation Quotas

One of the biggest issues Turkey has in the framework of CU is "road transport quotas" for
moving Turkish goods to the EU, our largest export market. Truck quotas have been in place
among EU members since 2001, and Turkey is nonetheless bound by them despite its
membership in the EU. This circumstance limits Turkey's export options to the EU and has a
detrimental impact on the commercial potential of the transportation sector. Turkey's needs are
frequently not met by the transportation quotas established by bilateral agreements between EU
member states and Turkey.
For instance, it can be seen from the Table that Italy supplied 6,000 certificates to Turkish
airlines for transit in 2010. Italy permits a limit of 6,000 journeys when commodities are being
delivered to France, Spain, or Portugal via transit through Italy. If these documents run out,
Turkish vehicles arriving by Ro-Ro ship at the Port of Trieste in Italy can travel to Switzerland,
France, Spain, and Portugal through Austria and Germany, but not through Italy (it is possible to
use non-quota documents known as "white documents" for transit to Austria and Germany).
13,471 of the 19,471 cars that arrived at the port of Trieste in 2007 had to pass through Austria
on their way to Switzerland, France, Spain, and Portugal since Italy once more set a limit of
6,000 transit documents (AYSO, no date). Turkish carriers must spend more time and money on
fuel as a result of this circumstance.
 Austria is another nation where Turkish carriers face severe difficulties. Despite needing
145,000 transit documents for 2010, as shown in Table 2, this nation has only allowed Turkish
transporters to enter its borders with 15,000 transit documents. Austria only permits Turkish
cars to pass through its nation after these documents have run out if they take one of three Ro-
La railway routes: Maribor (Slovenia), Fernetti (Italy), or Szeged (Hungary). Turkish carriers must
pay more as a result, just like in the case of Italy. The International Freight Forwarders
Association (UND) calculated that using Ro-La rail lines results in greater wait times and an
average cost increase of €300 for each vehicle compared to using roads (UND, 2013b).
Conversely, "bilateral transit document" quotas used by EU nations limit the entry of products
beyond a particular amount into their nations. In other words, given that each truck carries an
average of 20 tons of cargo, a country that grants Turkish transporters 20,000 bilateral transit
documents restricts the entry of products to its borders to 400,000 tons (Baydarol, 2008b;
MÜSAD, 2010: 30). For instance, Spain gave Turkey 5,260 bilateral transit permits in 2010 (UND,
2010). In this situation, Spain will cap Turkey's exports to its country by road at 10,520 tons,
taking into account that each vehicle carries an average of 20 tons of cargo.

https://dergipark.org.tr/tr/download/article-file/269341

4.5 Türkiye Trade Volume

TR-EU Trade - http://homes.ieu.edu.tr/~aburgin/IREU%20308%20Turkey-EU%20Relations/

%C3%9Clgen%20and%20Zahariadis%202004%20Future%20of%20EU%20Turkey%20Trade
%20relations.pdf
 EUROPEAN UNION

27 European nations make up the European Union (EU), an international organization that sets
common economic, social, and security policies. The EU began a significant expansion into
central and eastern Europe in the early twenty-first century after being limited to western Europe
at first. Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden are the
countries that make up the European Union. In 2020, the UK, which had been one of the EU's
founding members, departed from it.

The Maastricht Treaty, which went into effect on November 1, 1993, is what established the
EU. By establishing a single currency (the euro), a united foreign and security policy, common
citizenship rights, and by strengthening cooperation in the fields of immigration, asylum, and
judicial affairs, the treaty was intended to further the political and economic unity of Europe. In
appreciation of the EU's work to advance democracy and peace in Europe, the organization
received the Nobel Peace Prize in 2012.
Since World War II, numerous attempts to unite Europe have been made, with the EU being
one of them. At the end of the war, a number of western European nations wanted tighter social,
political, and economic links in order to foster France and Germany's long-lasting peace, as well
as economic prosperity and military security. To this purpose, the heads of state of six nations—
Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany—signed the Treaty of
Paris in 1951, creating the European Coal and Steel Community (ECSC) when it came into force
in 1952. The Labour government of Clement Attlee declined membership, possibly due to a
number of reasons, including the illness of key ministers, a desire to maintain economic
independence, and a failure to recognize the community's impending significance. (The United
Kingdom had been invited to join the ECSC and in 1955 sent a representative to observe
discussions about its ongoing development.) For a number of essential industrial and military
resources, including coal, coke, steel, scrap, and iron ore, the ECSC established a free-trade
zone. The treaty established a number of supranational organizations to govern the ECSC,
including a High Authority to manage affairs, a Council of Ministers to make laws, a Common
Assembly to make decisions, and a Court of Justice to interpret the treaty and settle related legal
disputes. The EU was subsequently founded as a result of a number of other international treaties
and treaty changes that were primarily based on this concept.

https://www.britannica.com/topic/European-Union/The-euro-zone-debt-crisis

Erupean Union’s Economy

 Economic Conditions of Member States

The cumulative five-year real GDP growth rate for the EU-27 was 11.9%, translating to an
estimated GDP per capita in purchasing power parity (PPP) of €25 100 in 2008 (Table 1). The 27
member states clearly have very different growth rates. Slovakia, Latvia, and Lithuania are at the
top of the list with actual growth rates that reach 40–43% over five years. Italy and Portugal, on
the other hand, record lagged five-year growth rates of 5-6%. Although there are still yawning
absolute discrepancies, it is clear that the newer member states are coming up economically.
Bulgaria and Romania had the lowest estimated GDP per capita (in PPP) in 2008, at €10,000 and
€11,300, respectively. Poland and Latvia are next, at €13,800 and €13,900, respectively. With
the exception of Luxembourg, whose GDP per capita in 2008 totaled a staggering €67 600, the
'regular' top scorers are Ireland, the Netherlands, and Austria, with GDP per capita of €36,300,
€33,400, and €31,300, respectively.

Country Population 2008(Million) 5-year GDP growth rate (%) 2008 GDP per capita
EU-27 497.5 11.9 25 100
Austria 8.3 14.5 31 300
Belgium 10.7 12.4 29 500
Bulgaria 7.6 35.5 10 000
Cyprus 0.8 22.0 23 200
Czech Republic 10.4 31.3 20 900
Denmark 5.5 10.7 30 100
Estonia 1.3 32.8 16 200
Finland 5.3 17.6 28 900
France 63.8 10.0 27 200
Germany 82.2 9.1 29 100
Greece 11.2 20.7 24 300
Hungary 10.0 15.3 15 500
Ireland 4.4 22.8 36 300
Italy 59.6 4.9 24 900
Latvia 2.3 41.6 13 900
Lithuania 3.4 40.1 15 200
Luxembourg 0.5 26.1 67 600
Malta 0.4 14.1 19 600
Netherlands 16.4 13.8 33 400
Poland 38.1 30.2 13 800
Portugal 10.6 5.8 18 900
Romania 21.5 38.7 11 300
Slovakia 5.4 42.8 17 600
Slovenia 2.0 28.5 23 100
Spain 45.2 16.7 26 200
Sweden 9.2 14.7 30 900
United Kingd. 61.2 11.9 29 600

https://uis.unesco.org/sites/default/files/documents/unesco-science-report-2010-the-current-
status-of-science-around-the-world-en.pdf

SOURCE

Kitap: Yazar SOYADI (Büyük harf, kalın), Adı (İlk harfi büyük, kalın), Eser adı (İtalik), Basım
sayısı, Yayınevi, Yayın yeri, Yayın yılı. (normal)

Strategic overview of Turkey-

http://sam.gov.tr/pdf/perceptions/Volume-III/june-august-1998/NezihiCakar.pdf
EU MEMBERS - https://european-union.europa.eu/principles-countries-history/country-profiles_en?
page=0
Turkey Geographical Importance-
http://sam.gov.tr/pdf/perceptions/Volume-III/june-august-1998/NezihiCakar.pdf
Turkey Trade Volume - https://data.tuik.gov.tr/Bulten/Index?p=Foreign-Trade-Statistics-January-2022-
45536 HYPERLINK "https://data.tuik.gov.tr/Bulten/Index?p=Foreign-Trade-Statistics-January-2022-
45536&dil=2"& HYPERLINK "https://data.tuik.gov.tr/Bulten/Index?p=Foreign-Trade-Statistics-January-
2022-45536&dil=2"dil=2
Turkey Commodity Imports and exports - https://commodity.com/data/turkey/
Which goods Turkey imports and exports -https://oec.world/en/profile/country/tur#:~:text=In
%20December%202022%20the%20top,(%242.07B).
What is European Union - https://en.wikipedia.org/wiki/European_Union
European Union Aims and Values - https://european-union.europa.eu/principles-countries-
history/principles-and-values/aims-and-values_en
Eu Ex Im Volume - https://tradingeconomics.com/european-union/exports-by-country
Eu Raw Materials - https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Extra-
EU_trade_in_raw_materials#General_view_on_EU_trade_in_raw_materials
Eu Enterprises - https://ec.europa.eu/eurostat/statistics-explained/index.php?
title=International_trade_in_goods_by_economic_sector#Declining_share_of_number_of_enterprises_in
_both_.27industry.27_and_.27wholesale_and_retail_trade.27
EU Product Type - https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Intra-
EU_trade_in_goods_-_main_features#Intra-EU_trade_in_goods_by_main_product_groups
Value of international trade in goods and services- https://ec.europa.eu/eurostat/statistics-explained/index.php?
title=World_trade_in_goods_and_services_-_an_overview

EU Products - https://ec.europa.eu/eurostat/statistics-explained/index.php?
title=International_trade_in_goods_by_type_of_good#International_trade_in_goods_-
_developments_by_broad_economic_category

Firm samples –
Bulung Logistics : If the container goes around France, firm uses Yalova Port to France Sete Port route to
deliver goods as fishy back transportation combination but if it is far from France, goods go with just
highway mode. This depends on the number of dozvola, the amount of fuel consumption, the availability
of the drivers, the constraints of foreign states and the distance.
Mars Logistics:
Flash Logistics:
Türkiye Lojistik Coğrafyası : https://prezi.com/iv9qgxf-0lr8/turkiye-lojistik-cografyasi/
Turkiye – EU trade relationship
Türkiye altyapı moller - https://dergipark.org.tr/tr/download/article-file/451535