JOINT PRESS RELEASE

The EC-Turkey Association Council held its 36th meeting on Monday, 6 March 1995, chaired by Mr. Alain JUPPE, Minister of Foreign Affairs of the French Republic and President-in-office of the Council of the European Union.

The Turkish Delegation was headed by Mr. M. KARAYALCIN, Minister of Foreign Affairs.

The European Commission was represented by Mr H. van den BROEK, Member, and the European Investment Bank by Mrs A. OBOLENSKY, Vice-President.

This 36th meeting of the Association Council was devoted to the achievement of the Customs Union between the two parties which is due to begin on 1 January 1996. The Association Council adopted on this occasion a decision determining the modalities of the functioning of the Customs Union and a resolution on the development of the other aspects of the Association. In addition, the European Union made a declaration on the resumption of financial cooperation.

I. With the decision on Customs Union, considering that the objectives set out by the Ankara Agreement, and in particular by its Article 28, which established the Association between Turkey and the Community, maintain their significance at this time of great political and economic transformation on the European scene, considering also that the Customs Union represents an important qualitative step, in political and economic terms, the two parties agreed on the modalities of implementation of the Customs Union. These modalities cover :

- the free movement of goods (elimination of all customs duties and restrictions to trade) and commercial policy (adoption by Turkey of the Common External Tariff and trade policy of the Union)

- the international standards and legislation

- processed agricultural products

- customs provisions

- approximation of legislation (protection of intellectual, industrial and commercial property, competition rules)

- institutional provisions.

II. In the Resolution on the development of the Association, the Parties called for the broadening of the cooperation between the European Union and Turkey in the fields of industrial cooperation, trans-European networks, cooperation on energy, transport, telecommunications, agriculture, environment, science, statistics, matters relating to justice and home affairs, consumer protection, cultural cooperation, information and communications.

In the field of social affairs, the Resolution foresees that a regular dialogue be set up on the situation of Turkish workers in regular employment in the Community and vice versa and that the two parties explore all possibilities for a better integration of such workers.

In the area of institutional cooperation, the Resolution calls for the strengthening of the institutional framework of the Association through the organisation of consultative links between Turkey and the European Union, with priority given to trans-European issues.

The Association Council also considered it necessary for political dialogue between the European Union and Turkey on all topics of common interest to be intensified at different levels: President of the European Council, ministers, officials.

The Resolution also states that the Association Council shall invite the Association Committee to present, in view of its next meeting, at the latest in September 1995, proposals making it possible to achieve the objectives indicated above for the development of the Association.

III. The Community made a declaration stating that, in order to adapt her industrial sector to the new competitive situation created by the Customs Union and improve its infrastructure linkage with the European Union (road transport,ports, airports, railways, telecommunications and electricity), as well as to reduce the difference between its economy and that of the Community, Turkey will need substantial financial resources, in particular long-term loans and technical assistance.

To this end, the Community will resume its financial cooperation with Turkey before the entry into force of the Customs Union and decide in the first half of 1995 on detailed arrangements for it.

Financial cooperation will be based on the following elements:

- substantial budgetary resources (375 MECU) made available for cooperation with Turkey over a five-year period starting in 1996 ;

- continued access to funds (EIB loans) available under the 1992-1996 new Mediterranean policy for the financing of infrastructure projects in the fields of environment, energy, transport and telecommunications (300 to 400 MECU), depending on the quality of the projects presented by Turkey ;

- additional EIB loans over a five-year period starting in 1996, in order to improve the competitiveness of the Turkish economy following the entry into force of the Customs Union ;

- funding facilities (budgetary resources as well as EIB loans) which the Community will make available, as from 1996, for all Mediterranean countries

- at Turkey's request and in cases of special need, the Community, in coordination with international financial institutions and in the light of all the funds available, could examine the possibility of granting exceptional additional medium-term macro-economic financial assistance linked to the execution of IMF approved programmes.

IV. The parties reviewed the various developments taking place on the European scene and held a broad discussion on political issues of mutual interest. In this context, in response to the EU statement on Human rights, the Turkish delegation informed the Association Council on the democratization package that is being implemented by the Turkish Government.

V. Furthermore, the Association Council noted with satisfaction the establishment of a Joint Consultative Committtee between the Economic and Social Committee of the UE and the representatives of the Turkish labour, employers and other interest groups, in conformity with Article 27 of the Ankara Agreement.