Turkey has signed a key European Union trade agreement in a move widely seen as overcoming the last hurdle to the start of membership talks.

Ankara had been expected to sign the Customs Union Protocol on Wednesday straight after Prime Minister Recep Tayyip Erdogan met Britain's Tony Blair who holds the EU's rotating presidency. But things did not go according to plan. The delay was caused by problems over Cyprus, which joined the EU last year.

The protocol applies to all EU members but Ankara does not recognise the island's Greek-Cypriot government. Cyprus was partitioned in 1974 between the Greek south which enjoys international recognition and the Turkish north which is only recognised by Ankara.

Turkey has issued a declaration making clear the signing of the document does not mean it has changed its position on Cyprus. Accession negotiations for Turkey are due to start on the third of October and are expected to last at least a decade.

PHOTO CAPTION

Britain's Prime Minister Tony Blair(R) walks with his Turkish counterpart Recep Tayyip Erdogan in London. (AFP)