— Att. İrem Sultan Gülden, LL.M.

February 25, 2026

1. INTRODUCTION

The fundamental factor determining costs and legal obligations in import and export operations is how the economic and commercial relationship between the trading countries is regulated. This field is often shaped by international agreements aimed at ensuring economic integration and developing foreign trade. Through these agreements, countries can grant each other discounts on customs tariffs, exemptions, or facilities for the movement of goods. Turkey also has numerous trade agreements in force, signed with various countries.

In this article, we will examine the Preferential Trade Agreement (PTA), Free Trade Agreement (FTA), and Customs Union (CU) models—concepts that may seem similar but result in significantly different legal outcomes and hold great importance for Turkey’s foreign trade. Understanding the scope and requirements of different models not only ensures more solid steps in foreign trade but is also crucial for avoiding unexpected taxes and penalties.

2. PREFERENTIAL TRADE AGREEMENTS (PTA)

Preferential Trade Agreements (PTA) regulate the customs tariffs that the member countries of the agreement will apply to each other for specific goods. Under a PTA, the concession to be applied to customs tariffs can be determined mutually or unilaterally. This concession is usually agreed upon as a discount on customs tariffs. To benefit from this discount, a Certificate of Origin is generally required to prove that the good originates from that country. While the Certificate of Origin is a document revealing the origin status—the “economic nationality”—of the goods, the method for determining the country of origin is also regulated within the scope of PTAs. Therefore, the country of origin may not always be the country from which the goods physically arrive. Preferential Trade Agreements are in force between Turkey and Uzbekistan, Iran, Pakistan, and Azerbaijan.

3. FREE TRADE AGREEMENTS (FTA)

Free Trade Agreements (FTA) generally aim to reduce or eliminate trade barriers between the member countries. For this reason, they include regulations on a series of rules, including customs tariffs, taxes, and quantitative restrictions. However, these agreements may also specify the goods and services covered. FTAs provide a more comprehensive economic integration compared to PTAs. FTAs do not create a structure that regulates the tariffs and taxes that member countries apply to third countries. In other words, there is no Common Customs Tariff.

These agreements are effective in establishing free trade areas and ensuring regional development. Turkey has a Free Trade Agreement in force with EFTA and FTAs in force with over twenty countries. Additionally, our FTA signed with the European Coal and Steel Community (ECSC), which formed the basis of the European Union, continues to remain in force between the European Union and Turkey today, even though the ECSC has been abolished.

• Common Documents Used Within FTAs: EUR.1 and EUR-MED

In FTAs, for products within the scope of the agreement to be exempt from customs duties, they must meet the “rules of origin” and prove they are “originating.” This proof is generally provided with an EUR.1 Movement Certificate (or in some cases, an Invoice Declaration/Origin Declaration).
The EUR.1 Movement Certificate is used in trade with certain countries with which Turkey has an FTA, and it also plays a critical role in two specific areas of the Turkey-EU relationship that fall outside the Customs Union:

1. Agricultural Products: For concessional agricultural products exported to the EU under Association Council Decision No. 1/98,
2. ECSC Products: For iron and steel products under the FTA in force between Turkey and the European Coal and Steel Community (ECSC).

EUR.1 is used as proof of origin in these two areas.

In addition, another document of importance for FTAs is the EUR-MED Movement Certificate. The EUR-MED Movement Certificate is a special movement certificate used in the trade of goods involving diagonal cumulation of origin, where originating inputs from more than one member country are combined within the scope of the Pan-Euro-Mediterranean Origin Cumulation System (PEM).

4. CUSTOMS UNION (CU)

A Customs Union, through an international agreement between countries, aims to eliminate trade barriers, tariffs, and quantitative restrictions between the member countries. Although it appears similar to FTAs, the most important difference between a Customs Union and an FTA is that member countries also regulate the tariffs they apply to third countries. Customs Union agreements require the application of a Common Customs Tariff (CCT) regarding the member countries’ customs relations with third countries. Among the Preferential Trade Agreement, Free Trade Agreement, and Customs Union models, the Customs Union model is the most comprehensive and provides the widest economic integration.

Turkey has a Customs Union with the European Union, which was implemented through Association Council Decision No. 1/95. In this context, the free movement of processed agricultural products and industrial products between Turkey and the EU, the elimination of customs duties on industrial products, alignment with EU trade policies and technical legislation (approximation of laws), and the application of the Common Customs Tariff to third countries have been regulated.

• The Fundamental Document of the Customs Union Between Turkey and the European Union: A.TR

Since the principle of “free movement” is adopted for products within the scope of the Customs Union between Turkey and the EU, the A.TR Movement Certificate is used in the trade of these products to ensure their free circulation in the member states. This certificate is not used to indicate the origin of the goods, but to prove that the goods are in free circulation within the scope of the Customs Union. (e.g., a product of Chinese origin can go to the EU duty-free with an A.TR certificate after its taxes are paid in Turkey and it enters free circulation).

5. CONCLUSION

The regime to be subject to and the documents to be used change according to the country of trade and the product. Accurately identifying the differences between the models we mentioned, and complying with the rules of origin and principles of free movement, forms the basis for providing cost advantages in foreign trade operations and avoiding unexpected customs duties and punitive sanctions.

Notice to Reader: This article has been prepared for general information purposes. The content does not constitute legal advice and does not establish an attorney-client relationship. It is recommended to seek legal consultancy specific to your situation.