Indian Goods Get One-Way Duty-Free Entry Into Turkey Via EU-FTA: GTRI

India goods can enter Turkey duty free via EU using FTA route but Turkish goods cannot use the India–EU FTA route and must pay applicable Indian tariff for entering India, said Global Trade Research Initiative in a note.

The European Union and Turkey are linked by a customs union covering most industrial goods and processed agricultural products. These goods move freely between the EU and Turkey without tariffs or quotas, and Turkey applies the EU’s common external tariff on imports from third countries, it said.

As a result, when Indian goods enter the EU under the India–EU FTA, they can then move onward into Turkey without additional tariffs. In effect, Indian exports gain indirect access to the Turkish market via the EU.

The reverse does not apply. Turkish goods cannot use the India–EU FTA to enter India duty-free, even if they pass through EU ports. Under the FTA’s rules of origin, only EU-origin goods qualify for preferential access, and Turkey is not a party to the agreement, it said.

This creates a one-way benefit. Turkey must open its market to countries that sign FTAs with the EU, but those countries are not required to offer the same access to Turkey unless they negotiate a separate deal, said Ajay Srivastava, founder of GTRI.