Analysts at Rabobank notes that the EU is looking to strengthen trade relations with Turkey, which could use a boost to its economy.
“The current customs union with Turkey only covers industrial goods but not agriculture, services or public procurement. Hence, there is significant scope for improvements. However, in light of recent political events and the ongoing soured relationship between Turkey and the EU, the move has the looks of an olive branch. The branch, however, is one with strings attached as the statement also said “Respect of democracy and fundamental rights will be an essential element of the agreement”. Concerns regarding these rights heightened following the failed coup in July. Most certainly to be continued.”
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