Turkey-European Union foreign trade analysis in context of Customs Union

Countries constitute economic integrations with the purpose of competing with each other, raising their manufacturing and improve their commercial capacities. The effect on both nearby countries and world of the European Union which reaches economic union process and becomes the first integration is fairly higher order. Therefore, the effects of economic extent which Customs Unions reach are able to be seen directly on Turkey. The effects of Customs Unions which have applied by years of 1996 divide into both static and dynamic. Hence, these effects affect and improve Turkey positively at times, on the other hand, negative sides also affect. In the first part of the study, the evolution of economic integration is tried to explain by giving information about foundation, purposes and variety of integration. In the second part, theoretically, how the framework of Customs Unions consist of and which effects constitute are indicated. In the final part, after acceptance of Customs Unions, economic effects on Turkey is compared below static and dinamic factors. According to the results obtained, while between 1996-2008, the positive effect is seen, fluctuations under the effect of Customs Unions due to decisions which the European Union take and debt crisis are determined.