Will Turkey also benefit from the India-EU FTA? Turkey supported Pakistan in Operation Sindoor.

India-EU FTA: Turkey is located between Europe and Asia. Therefore, goods can be exchanged between India and European countries through Turkey, but it does not fall within the EU's FTA territory.

 

Will Turkey also benefit from the India-EU FTA? Turkey supported Pakistan in Operation Sindoor.

 

India-EU FTA: A Free Trade Agreement (FTA) has been signed between India and the European Union. It is being called the "mother of all deals." However, a key question remains: will Turkey be able to export its goods to India under this FTA? 

Türkiye is part of the EU Customs Union 

This question arises because Turkey has been part of a customs union with the EU since 1996. Under this agreement, goods can move between Turkey and the EU without tariffs or quotas. Turkey's geographical location allows it to be located between Europe and Asia. Therefore, goods between India and European countries can be transacted through Turkey, but it will not benefit from an India-EU FTA, even though it follows the EU's Common External Tariff (CET). 

Will Turkey benefit from FTA?

Indian officials have made it clear that while Indian products can enter Turkey via Europe, Turkish goods cannot enter India under the terms of the FTA, even if they are sent through EU ports.

An official, on condition of anonymity, said, "Our goods go to the EU and from there to any other country with which the EU has a customs union, but Turkey will not get the benefit of this because it is not a part of the EU as a territory in the FTA, hence Turkey cannot export to India and avail the concessions."

 

An official said that even if shipping takes place through EU ports, any Turkish goods will not get the benefit of lower tariffs under the FTA because its origin will ultimately be considered Turkey and it will attract full tariff in India.

India-Turkey relations sour 

  • Last year, in the wake of the terrorist attacks in Pahalgam , Jammu and Kashmir, India launched an attack on Pakistan under " Operation Sindoor ." Turkey openly supported Pakistan during this period. Relations between India and Turkey have remained strained since then, leading to a decline in trade between the two countries. India's exports to Turkey are projected to fall by 14.1 percent to $5.71 billion in the 2024-25 fiscal year, down from $6.65 billion in 2023-24. Meanwhile, India's imports from Turkey are projected to decline by 20.08 percent to approximately $3 billion.