https://iseg.unitbv.ro/about-isegThe Association Agreement between Turkey and the European Community  (mostly referred to as Ankara Agreement) set the goal of establishing a customs union between the parties in a 3-paced process, with a hope of Turkey’s eventual membership to the European Economic Community. Despites customs union envisages elimination of all barriers in free movement goods between the parties and adoption of the common customs regime by Turkey, it required further alignment with other freedoms such as free movement of services, capital, people and adoption of competition policy, so on and so forth, for  proper running of the Agreement. Decision 1/95 of the Association Council that took effect by 1st January 1996 resulted in a complete customs union in industrial goods, excluding agricultural goods and services. Provided that Turkey succedded to realize its obligations on free movement of goods, it is now time to deepen the integration by introducing free movement of people, capital and services between the parties if they are realy pledged “to promote the continious and  balanced strengthening of trade and economic relations between the Parties, while taking full account of the need to ensure an accelerated development of the Turkish economy and to improve the level of employment and the living conditions of the Turkish people” as put in article 2 of the Agreement. In this context, the aim of this paper is to discuss the pros and cons of the Customs Union with the EU in view of Turkey, with reference to past and prospective welfare results of Ankara Agreement. In order to achieve this end, a qualitative research will be carried out analysing relevant literature and statistics on the issue, and policy recommendations for both Parties will be provided.