India-EU FTA Deal: Pakistan Ally Turkey Gets No Benefits, Must Pay Same Tariffs

New Delhi: The recently concluded India-European Union Free Trade Agreement (FTA) has delivered a blow to Turkey, a known ally of Pakistan. While the FTA will allow Indian goods preferential market access in the EU, Turkey will not benefit and will continue to pay the same tariffs on Indian products.

Why Turkey Misses Out
The reason lies in the customs union between Turkey and the EU, which has been in effect since 1996. Under this arrangement, Turkey is bound by the EU’s external tariffs. This means that if the EU reduces duties for any country under an FTA, Turkey is required to extend the same concessions to that country.

However, in the case of the India-EU FTA, Turkey is not part of the agreement, and therefore cannot use it to export Indian goods duty-free. According to an official cited by the Economic Times, even if Indian products pass through EU ports, Turkey cannot claim the FTA benefits because it is not a direct signatory.

Scope of the FTA
The India-EU FTA primarily covers goods. Other sectors such as agriculture raw materials, services, investment, government procurement, and digital trade are not included. Under the FTA, 96.8% of products will have preferential market access. This translates to 99.5% of India’s exports by volume and 90.7% by value entering the EU duty-free.

Turkey’s Stand Against India
Tensions between India and Turkey escalated after Operation Sindur in May last year, when India conducted strikes on terrorist bases in Pakistan. Turkey publicly supported Pakistan and condemned India’s actions, straining bilateral ties.

Trade Figures Reflect Decline
Trade data shows that India’s exports to Turkey fell from $6.65 billion in FY 2023-24 to $5.71 billion in FY 2024-25, while imports from Turkey declined by 20.8% to around $3 billion. Turkey accounted for just 1.3% of India’s total exports of $437 billion in 2023-24.

Expert View
Ajay Shrivastava, co-founder of the Global Trade Research Initiative, explained that Turkish goods cannot enter India duty-free under the FTA, even if shipped via EU ports, as the FTA rules apply only to India and EU members, not Turkey.