Updating the nearly three-decade-old customs union, joining the "Made in EU" framework, and securing participation in the Single Euro Payments Area (SEPA) would significantly strengthen Türkiye's economic integration with the European Union, the head of the country's exporters said Monday.

"If the customs union revision, the work related to 'Made in EU' and participation in this payment system (SEPA) are achieved together, we would reach a completely different position from where we are today," Mustafa Gültepe, chair of the Türkiye Exporters Assembly (TIM), said.

Türkiye ⁠and the ​EU have been holding ​talks about the EU's 41-country Single Euro Payments ​Area, which makes ​cross-border euro-currency payments cheaper, faster ‌and ⁠more secure.

Earlier this month, Ankara said it had sent a ​letter of intent to ‌join the system.

Gültepe said the move would significantly simplify payments between Turkish companies and European partners.

"Transfers would be carried out as if they were domestic transactions. Large companies may not face major difficulties in this area, but it would provide much greater support for SMEs, both those making and receiving payments," he told Anadolu Agency (AA).

The EU accounts for around 45%-50% of Türkiye's exports, with the share exceeding 65% in some sectors.

Lobbying for 'Made in EU'

Gültepe said exporter groups continue lobbying efforts regarding Türkiye's inclusion in the EU's "Made in EU" initiative, while the Trade Ministry is also working on the issue.

He said discussions around the framework, particularly its potential impact on the automotive industry, have not yet been concluded.

"The interim assessment is positive, but we need to remain synchronized with them in the next phase," he said.

Gültepe warned that EU trade agreements with third countries should not disadvantage Türkiye because of the customs union arrangement.

"Work on 'Made in EU' continues, especially through our lobbying efforts. Intensive efforts are underway. We hope to remain included," he noted.

At the same time, Gültepe reiterated that the customs union "genuinely" needs to be revised.

"The agreements the EU signs with third countries are harming Türkiye," he said.

For decades, Türkiye and the bloc enjoyed good trade ties and cooperation on migration. However, relations have been strained over multiple issues, including the prolonged process of expansion of the scope of the customs union agreement and maritime issues with Greece and the Greek Cypriot administration.

The deeper 1990s-era trade agreement would be expanded to services, farm goods and public procurement. The current deal only covers a limited range of industrial products.

Business groups have long argued that the deal is outdated and ill-suited for today's trade environment.

Gültepe highlighted Türkiye's proximity to Europe, logistics advantages, manufacturing capacity and flexible production structure as key strengths.

"It is a market that demands flexibility, and we have flexibility. It demands quality, and we have quality. Beyond price flexibility, we currently have almost everything Europe is looking for," he said.

Need for faster export growth

Türkiye's exports rose 3.6% year-over-year in the first half of 2026 to $136.1 billion, a performance Gültepe described as positive given the impact of geopolitical tensions in the Gulf region and the Russia-Ukraine war.

Türkiye recorded $278 billion in exports over the past 12 months, but Gültepe stressed that annual growth rates of 3%-5% were insufficient.

"Türkiye needs to grow at double-digit rates," he said, adding that the country's long-term vision should be to become one of the world's top 10 exporting nations.

He said achieving that goal would require contributions from all 27 sectors, including services, and called for investments in industries that currently contribute to the country's current account deficit.

Gültepe said Türkiye's exporters aim to reach $500 billion in total exports, including services, by 2030, compared with around $400 billion currently.

He said technology-intensive sectors would play a key role in achieving the target, adding that industries with labor costs below 20% of production expenses have greater growth potential as rising costs have weakened Türkiye's price competitiveness.

Higher costs have made it harder for existing exporters to defend their markets and reduced the number of companies entering export markets for the first time, Gültepe said, adding that the number of first-time exporters has fallen by around half over the past 12-18 months.

He said the most difficult period should be behind the sector and predicted that Türkiye could achieve stronger growth from 2027, with monthly double-digit export increases across industries.