Turkey first applied in July 1959 for associated membership of the European Economic Community (EEC), established in 1958. The EEC reacted by proposing the creation of an association as a transitional measure leading to full membership. This gave rise to negotiations that culminated in the Ankara Agreement on 12 September 1963.  DETERMINED to establish ever closer links between the Turkish people and the peoples united within the European Economic Community, the Member States of the Community and Turkey undertake to authorise, in the currency of the country where the creditor or beneficiary resides, all payments or transfers related to the movement of goods, services or capital and all transfers of capital or income, to the extent that trade in goods, services, capital and persons between them has been liberalised under this Agreement. The Ankara Agreement was signed in Ankara on September 12, 1963.  The Agreement launched a three-stage process to establish a customs union to ensure Turkey`s full membership of the EEC. After its creation, the customs union would begin with the integration of the economic and trade policy that the EEC considered necessary. – the prohibition of import duties between the Member States of the Community and Turkey, and. exports and all charges with equivalent effect, quantitative restrictions and any other measure of equivalent effect aimed at protecting domestic production in a manner contrary to the objectives of this Agreement; The Association Council shall take all appropriate measures to promote the necessary cooperation and contacts between the European Parliament, the Economic and Social Committee and other institutions of the preparatory State; However, these contacts are limited to relations between the European Parliament and the Turkish Parliament. 2. This stage shall not exceed twelve years, subject to derogations which may be granted by mutual agreement. Derogations must not impede the definitive establishment of the customs union within a reasonable period of time. – to approximate the economic policies of Turkey and the Community in order to ensure the proper functioning of the association and the progress of the joint actions necessary for this purpose.
The Parties shall consult each other to facilitate the movement of capital between the Member States of the Community and Turkey which will serve the objectives of this Agreement. . . .