Öz Ankara Agreement which was signed on the 12th of September 1963, and made Turkey an associate member to today's European Union, was based on a Customs Union between the parties and provided for the prospective full membership of Turkey to the European Economic Community, and subsequently to the Union. Ankara Agreement is an association agreement which paves the way for Turkey's future accession. Realization of the Customs Union with the 10 new Member States, including the Greek Cypriot Administration, is an obligation stipulated by Ankara Agreement When, however, EU admitted on the I st of May 2004 the Republic of Cyprus, on behalf of the entire Island, as occupied by Greek Cypriots and excluding the Turkish Cypriots, there arose a serious problem regarding the establishment of the Customs Union with the Greek Cypriot, to whom Turkey denies recognition. Turkey has signed the Additional Protocol which stipulates extension of Ankara Agreement to all countries and establishment of customs unions between EU member states and Turkey on industrial goods within the framework of Presidency Conclusions of the Summit held on 17th December 2004 but also made a declaration stating that Turkey does not recognize Southern Cyprus. In return, EU set forth additional conditions to Turkey by means of Counter Declaration on Cyprus dated 2 Ist September 2005 and requested Turkey to abolish all limitations on free movement of the goods including those related to transportation means. EU, which makes reference to Ankara Agreement, forgot the obligations to create a customs union only on industrial goods and made great attempts to force Turkey to accept a method which may lead to de-facto recognition of Southern Grek Cypriot Administration by Turkey. According to the Acquis Communautaire, transportation which is a service subsector, is not included within the scope of Customs Union. In addition, transportation sector was not included in the scope of customs union, in Ankara Agreement Article 18 too. While EU makes reference to Ankara Agr-eement, she does not clarify why she does not comply with the provisions of the Agreement regulating free movement of the labor. This is a hypocritical double standard and pare violation and toppling of Acqıı is Communautaire, as adopted by EU. Since transportation sector is not included in customs union with Greek Cypriot Administration, in accordance with the Additional Protocol, Turkey is not obliged to open its sea and air ports to Greek Cypriot Administration. Additionally, establishment of a customs union with Greek Cypriot Administration does not necessarily n ı ean an obligation for recognition of this country by Turkey. Just like Turkey who import goods from Taiwan is not obliged to recognize Taiwan.