Decision 1/95 of the Association Council imposed stricter obligations than those set out in the definition of the customs union in the Ankara Agreement. Article 10 of the agreement prohibits tariffs on imports and exports as well as all equivalent effect taxes, quantitative restrictions and any other measures of equivalent effect aimed at protecting domestic production in a manner contrary to the objectives of this agreement between the Member States of the Community and Turkey. In addition, Turkey is committed to resuming the Community`s common tariff in its trade with third countries and to moving closer to other EU rules on foreign trade. The agreement covers trade in industrial products, fish and seafood products and processed agricultural products. The transition period ended on January 1, 1999. In addition, bilateral agricultural agreements have been concluded between the various EFTA states and Turkey, which are part of the instruments for creating the free trade area. By decision 1/2001 of the CE-Turkey Customs Cooperation Committee of 28.03.2001 (JO L 200 of 20.12.2001, p. 1). The provisions for the application of Decision 1/95 are agreed for the exchange of goods between the two parties of the customs union and with third countries (modified by Decision 1/2003 of 30.01.2003, JO L 155 of 16.12.2001, p. 1). JO L 28, 4.02.2003 – Corrigendum JO L 28, from 4.02.2003 JO L 74, 20.03.2003). Under The Association Council`s Trade Agreement 1/95, the customs union not only includes the abolition of tariffs and all other measures of equivalent effect and the adoption of the Community`s common tariff, but also provides for the removal of all competition distortion mechanisms that will give the other party an unfair advantage.
In line with this approach, Turkey is obliged to align its legislation with the EU`s achievements in the areas of competition, intellectual property and the common trade policy, as well as the free movement of goods. The “final phase” under the Ankara agreement was to complete the creation of a customs union between the EC and Turkey. On 6 March 1995, the Association Council adopted a “decision on the customs union (Decision 1/95) ” on the implementation of the final phase of the customs union between Turkey and the EC. Thus, 22 years of “transition” were completed in the Additional Protocol on 1 January 1996 and the final phase of Turkey`s accession to the EU was launched. One of the objectives of the agreement (Article 1) is to promote the harmonious development of economic relations between the contracting parties by extending mutual trade. The agreement contains provisions relating to the elimination of tariffs and other trade barriers, as well as other trade-related disciplines, such as competition rules, intellectual property protection, public procurement, state monopolies, state aid, payments and transfers.