The Probable Effects of the Modernization of the Customs Union Upon the International Road Transportation Sector: Izmir Region Example

Abstract

This study aims to detect the probable effects of the modernization of the European Union (EU) - Turkey Customs Union upon the international road transportation sector. Izmir region has been selected as a research area. Izmir is located in the Aegean region, which is the third biggest city and second biggest port of Turkey. With its developed industry due to the region’s raw material resources, qualified labor force, and wide range of transportation opportunities, Izmir is one of the important trade centers, ranking second after the Marmara Region in terms of industry. Closeness to the landlocked centers with high processing capacities such as Manisa, Denizli, Aydin, Mugla, Bursa, Usak, Kutahya, and the presence of around 1,700 companies with international capital makes Izmir more critical for the logistics sector. Thus, it is considered an acceptable sample area for the research. A semi-structured interview technique has been used in the investigation. According to the results of interviews with 19 international road transporters in Izmir, the modernization of the Customs Union will increase Turkey’s competitiveness of trading in goods and services with the EU countries. Removing the obstacles like visa problems, limitations on the free movement of drivers and transportation services, transit tolls that the Turkish road transport companies face in the EU member states, the modernization of the Customs Union will benefit both Turkish road transporters and exporters, as well as increase trade volume between the sides.