A REVIEW ON THE WINE SECTOR IN THE CONTEXT OF THE EUROPEAN UNION AND TURKEY

Abstract

Turkey is geographically close to the EU, the world's largest wine market, and is a party to an
agreement such as the Customs Union. The opportunity to use Turkey's high wine potential to
provide quality and relatively inexpensive products to the rich EU market provides an opportunity
to establish a win-win relationship for Turkey and the EU. The said opportunity may increase
Turkey's wine export volume, which is almost non-existent, and provide an opportunity to generate
a significant income close to EU countries with similar geographical structure. This study aims to
contribute to filling the gap in the literature by examining the world's largest wine producer and
consumer, the European Union, and Turkey, which is a candidate country, in the context of the wine
industry. The aim of the study is to raise awareness about the need to evaluate Turkey's idle wine
potential from an economic point of view. In the study, it was observed that there was a shrinkage
in the wine sector without a decrease in grape production in Turkey over time. Over the years, it has been observed that Turkey's relations with the EU in the context of wine trade
have reversed and become an importer from an exporter. In addition, Turkey's indirect tax rate for
wine is far from being in line with the EU's tax rate. It can be said that the increasing tax burden is
an obstacle to the development of Turkey's wine potential.