The free trade agreement (FTA) between Turkey and the European Free Trade Association (EFTA) has been updated, the Economy Ministry announced Friday, saying that the revised FTA is more modern and broader than the existing customs union with the EU, and will set an example for the customs union update with the union.

Turkey plans to sign an expanded agreement with the European Free Trade Association (EFTA) in January 2018, according to the Turkish economy minister.

"Our aim is to sign the agreement in Davos in January during the World Economic Forum. It is a very effective wide-range, free trade agreement," said Economy Minister Nihat Zeybekci.

Economy Minister Zeybekci met with Johann N. Schneider-Ammann, minister and head of the Federal Department for Economic Affairs, Education and Research of Switzerland; Aurelia C. K. Frick, minister for foreign affairs, justice and culture of Liechtenstein; and Monica M

æland, Norway's minister of trade and industry, at a meeting on the revision of Turkey-EFTA FTA in Geneva on Friday.

"With the EFTA, we had a wider range agreement than the customs union agreement, and this agreement will serve as a model for updating the customs union agreement," Zeybekci said.

Following the EFTA meetings, Zeybekci met separately with Swiss Economy Minister Johann Schneider-Ammann to discuss bilateral relations. Zeybekci also met with World Trade Organization (WTO) Director-General Roberto Azevedo.

According to the statement released by the ministry, the parties agreed to expand the existing FTA and the new FTA, which was approved at the end of the meeting.

In accordance with the requirements of global trade, the agreement also included a services trade, e-commerce and comprehensive intellectual property section.

With the new FTA, which was prepared to replace the former FTA, which was signed before the World Trade Organization (WTO) and generally focused on the removal of customs duties, the trade in goods document such as customs duties, national treatment, technical barriers, sanitary and phytosanitary standards, trade defense instruments, the rules of origin and general and institutional provisions were updated. With the new regulation, cooperation and consultation mechanisms beyond the WTO provisions were established in trade defense instruments. It was agreed on in an assertive and comprehensive text with the EFTA, which consists of developed economies of the world in the field of intellectual property, which has a decisive influence on the direction of global competition. In this way, Turkey's vision of high value-added and medium-high technology production and exports has been put forward, and a strong system has been established between EFTA states and Turkey in terms of mutual protection and continuity of innovations. Within this framework, regulations beyond the WTO rules were adopted in fields such as patent trademark and the protection of geographical indications.According to the revised FTA, taking into account the production and export targets set forth in human medicines, reciprocity was provided for the first time in terms of protection of data in these products. In the meantime, by emphasizing the relationship between technology transfer and intellectual property rights, cooperation provisions for facilitating technology transfer were included in one of Turkey's FTAs for the first time.

The Annex on Trade Facilitation, which facilitates customs transactions and operations, has become part of the agreement. An improved Mechanism for the Settlement of Dual Disputes to be applied in all disputes that take place in the implementation or interpretation of the agreement was also established in the revised FTA.

By incorporating the rules and commitments related to service trade, a more predictable trading environment for service providers and investors in Turkey was achieved.

EFTA states are also ensured to undertake comprehensive commitments regarding road transport and tourism services, which are among the most important service exports items in Turkey.

Transport quotas liftedConcerning road transport, quotas for dual and transit transport to EFTA states were lifted. Carriers are protected from being subject to discriminatory charges. Under the agreement, an annex on healthcare services with Switzerland was concluded, ensuring patient mobility between the parties to receive private health services, elderly care services and other health services.

According to the most comprehensive agreement concluded by Turkey on the mobility of real persons, which is an integral part of the service provision, arbitrary applications that service providers face in multi-entry visa applications will be avoided. While e-commerce is included in the agreement, exemption from customs duties for products such as electronically transmitted software as well as cooperation provisions on the development of e-commerce between the parties are guaranteed.

The revised FTA is basically a more modern and broader agreement than the existing customs union with the EU and sets an example for the customs union update with the EU.

Total foreign trade at $6.5BThe Turkey-EFTA FTA, which was signed in Geneva on Dec. 10, 1991, and entered into force on April 1, 1992, was the first FTA concluded by Turkey. Thanks to the existing preferential regime organized under the FTA, total trade amounted to $6.5 billion in 2005 with EFTA countries, with $3.2 billion in exports and $3.3 billion in imports.

FTA revision studies were initiated in 2014, and finally completed with the sixth and final round of negotiations in Ankara on Nov. 14-16, 2017. The FTA is expected to be signed and put into force in a short time following the necessary legal oversight proceedings.