Türkiye's dialogue with the European Union on the matters of the customs union update persists, Trade Minister Ömer Bolat said on Thursday, also pointing out that this was a long-standing issue and that the authorities are also following agreements made between other countries.
Speaking at an event, Bolat recalled that Türkiye has launched high-level trade dialogue meetings with the European Commission to update the customs union, referring to the decades-old framework which allows shipments of goods between parties, but which stayed broadly limited to industrial and agricultural goods.
"Of the 29 sub-issues that have caused problems within the customs union, we have resolved 15 through mutual compromise. Our dialogue and meetings on the remaining issues are continuing," Bolat told the summit organized by Dünya newspaper.
Starting his speech, the minister touched upon recent contacts in Budapest, where he traveled for the second-term meeting of the Türkiye-Hungary Economic and Trade Joint Committee (JETCO).
He also said the Turkish economy had emerged from recent crises by positively diverging from developed countries and shared figures highlighting the progress made over the past 23 years.
Recalling that Türkiye passed a critical turning point last year amid tariff and trade wars, Bolat said that at the World Economic Forum’s 56th Annual Meeting in Davos last week, nearly all Western leaders acknowledged that the global political, economic, monetary and military system established after World War II was cracking.
He also drew attention to new areas opened in trade wars and that some countries have signed free trade agreements, referring to agreements between the European Union and Mercosur bloc, as well as the one between the EU and India.
He stressed that updating the customs union between Türkiye and the EU is not a newly emerging need, recalling that the agreement fully entered into force on Jan. 1, 1996.
"Since we were not an EU member and therefore could not sit at the table when the EU concluded free trade agreements with third countries, we have consistently raised our demands regarding the asymmetries that emerged, ever since Jan. 1, 1996," Bolat said.
"It should also be noted that when the customs union entered into force, Türkiye’s export-to-import coverage ratio in trade with the EU was only 50%. Today, it is 100%. This is a major success over 30 years," he added.
"We have also made significant progress toward balanced trade with the United States. On the one hand, we are conducting trade negotiations with the U.S., on the other, we are engaged in deep discussions with the EU covering various issues."
At the same time, Bolat recalled that Türkiye’s calls and demands regarding the updating of the customs union have been accepted by the European Commission, adding that the proposal has been submitted to the EU Council.
"An authorization decision from the EU Council is required to allow the European Commission to begin negotiations, and the commission is awaiting this," he further said.
"In the meantime, we are not standing still. We have launched high-level trade dialogue meetings with the European Commission. So far, we have held two meetings, one in Brussels and one in Ankara. We are discussing all issues one by one, from transport quotas and visa matters to customs procedures, the carbon border adjustment mechanism, the Green Deal and adaptation to digital transformation," he explained.
His remarks came amid concerns over the impasse regarding the update of the EU-Türkiye Customs Union at a time when the EU moved to agree major trade deals with four South American nations and India, which was announced earlier this week.
"Of the 29 problematic sub-issues within the customs union, we have resolved 15 through mutual compromise. Dialogue and meetings on the remaining issues continue," he maintained.
Bolat said EU officials responsible for customs and the carbon border adjustment mechanism visited Türkiye two weeks ago, and that detailed negotiations were also held in Brussels with key EU officials.
Stressing that talks are ongoing, Bolat said they were also closely monitoring agreements made by countries and blocs with other countries.
"We remain vigilant about the potential impacts on our country," he suggested.
"I would also like to emphasize that we always implement the necessary measures at our customs to prevent situations such as trade diversion. We did so yesterday, we are doing so today, and we will continue to do so tomorrow," he remarked.
However, the minister also called to be "cautious and optimistic," as he said that the trade with the EU was progressing in a balanced and successful manner on a win-win basis.
"At this point, together with our candidate country status during the accession negotiations, we are evaluating the advantages of the Customs Union alongside investors coming from the EU to Türkiye and Turkish entrepreneurs. Therefore, let us be cautious and optimistic, and not panic," he said.
He also pointed to international summits to be held in Türkiye this year, saying that Türkiye will become "a focal point for the world, the media, and major global political, economic, environmental, defense and parliamentary agendas."
Still, emphasizing that conditions in global trade are becoming more challenging by the day, Bolat said coordinated and intensive efforts are needed to protect Türkiye’s interests.
Bolat added that even if final figures have not yet been released, Türkiye’s share of global trade would have increased in 2025, noting that exports rose even as global trade contracted.
Bolat said Turkish products and the services sector enjoy a well-deserved reputation worldwide, adding that "Made in Türkiye" has become an important brand among customers globally and a source of pride.
"The motto ‘Built by Türkiye,’ referring to projects constructed by Turkish contractors, now represents the success of Turkish contractors in 138 countries around the world," he also said.
