What is a Free Trade Agreement (FTA)?

Under import and export rules, each country can have different regulations and conditions. Certain agreements are signed so that these countries can carry out import and export activities more easily with each other. One of these agreements, the free trade agreement, allows countries to pass through activities with a common regulation in a more orderly and effortless manner.

The free trade agreement is an agreement in which countries remove customs duties and similar restrictions with each other. Under this agreement, the aim is to promote import and export activities and facilitate trade in this way. However, this removal of customs duties is not a regulation applicable to third countries that are not covered under this agreement. Therefore, countries still collect customs duties from countries outside the agreement in amounts appropriate to their national revenues.

With the free trade agreement, trade activities between countries have reached a new dimension. With the agreement hosting many beneficial regulations for the revenues and economic conditions of the countries, politically, countries have also gotten closer to each other, laying the foundations for healthy transactions.

What is the Importance of the Free Trade Agreement?

The free trade agreement is an important agreement as it facilitates import-export activities and enables fast, efficient, and effective trade. One of the most significant contributions of this agreement to countries is to adapt to the international market and make more global decisions. Societies are getting closer day by day, and countries are in deep and continuous communication with each other. Therefore, the ease brought by such agreements in the global market contributes to creating a more comfortable and healthy shopping environment for both sellers and buyers.

The goal of the free trade agreement is to liberalize trade and make it free both financially and in terms of regulations. For this purpose, many agreements are being prepared in conjunction with the World Trade Organization's negotiations and regional studies. Countries that are members of the free trade agreement progress their trade activities within the framework of conditions determined by the parties beforehand. For this reason, the parties participate in this agreement in a way that suits them and benefit both themselves and the counterpart country. It is one of the agreements that carries great importance regarding exports and imports due to the mutual benefits for both sides.

What Contributions Does the Free Trade Agreement Provide to Countries?

Under the free trade agreement, countries can carry out fast, efficient, and effective trade activities, reaching advanced positions in the market regarding imports and exports. Because of this benefit it provides to countries, the free trade agreement puts member countries one step ahead in their trade activities. The other advantages and benefits provided to member countries by the FTA can be listed as follows:
• Countries that are members of the free trade agreement facilitate a more effortless and easier trade by reducing trade barriers between each other.
• The import and export activities of the member countries increase.
• Along with the FTA, countries seize opportunities to reach their target markets more easily.
• Member countries achieve a rapid growth graph by recovering economically through free trade agreements.
• This agreement, which serves as an incentive for exports, also increases local production in the member countries.
• Trade becomes easier due to the relaxation of trade rules.
• Products and services are delivered to customers more quickly under the rules and regulations of the free trade agreement.
• Importers and exporters in member countries can obtain the raw materials (like raw materials) they need for the goods they produce more conveniently and easily.
• As countries are always in communication with each other, the market network also expands.

What are the Goals of the Free Trade Agreement?

The free trade agreement is of great importance for countries to strengthen economically. Therefore, countries resort to such agreements to enable easier and healthier transactions in their commercial activities and work to create an efficient trading environment. In addition to these goals, there are many other benefits provided by this agreement to member countries. In this regard, the objectives targeted by the parties through the free trade agreement can be listed as follows:
• Along with the FTA, countries work to grow and develop in foreign markets.
• Member countries aim to prove themselves in the market and increase their share in international trade. Countries increasing their market share achieve economic growth as well.
• With the free trade agreement, communication networks strengthen, thus member countries work to increase their trade with each other.
• To control the competition concept, which is one of the most significant risks in trade, countries aim to increase their competitive strength through the FTA.
• The quality improvement and diversification of products and services involved in imports and exports are targeted.
• We previously mentioned that countries also get closer politically through the free trade agreement. In this regard, as countries are in collaboration through the FTA, the way for future agreements and transactions is aimed to be opened.

Which Countries Have Free Trade Agreements with Turkey?

To facilitate commercial agreements and sign healthy transactions within certain rules, Turkey has also implemented many trade agreements. To date, Turkey has made agreements for 38 free trade agreements with different countries. There are currently 22 FTAs still in effect:
• Albania
• United Kingdom
• Bosnia and Herzegovina
• EFTA
• Faroe Islands
• Morocco
• Palestine
• South Korea
• Georgia
• Israel
• Montenegro
• Kosovo
• North Macedonia
• Malaysia
• Egypt
• Moldova
• Mauritius
• Serbia
• Singapore
• Chile
• Tunisia
• Venezuela

These listed free trade agreements are still in force with Turkey. In addition to these agreements, there are other agreements currently undergoing approval and negotiation processes. For instance, free trade agreements with Sudan, Qatar, and Lebanon are still in the approval process and are expected to come into effect soon. Besides these countries, there are also free trade agreements with Japan, Thailand, Indonesia, Somalia, and Ukraine, which are still in negotiation for effective dates.