Türkiye will continue its efforts to have its automotive industry covered by the European Union's draft Industrial Accelerator Act (IAA), Trade Minister Ömer Bolat said Monday after a meeting with sector representatives.

The Trade Ministry said in a statement that the "Made in Europe" policy in the draft should take account of the deep industrial integration between Türkiye and the EU.

The bloc says the proposed rules are designed to strengthen its industrial base by encouraging more manufacturing and sourcing within Europe. The measures would also push foreign manufacturers seeking access to the EU market to produce more goods locally and rely on European suppliers.

But "Made in Europe" has sparked a political dispute over which countries should be covered by the rules.

In its current form, the proposal excludes non-EU countries such as Türkiye, Britain and Morocco, where vehicle production and supplier networks are deeply integrated with Europe's automotive industry.

Automakers with operations in ⁠those countries, along with local industry groups, argue that limiting the definition of Europe to the EU would damage supply chains that have developed across the wider region.

Bolat last week held a series of high-level talks in Brussels, where he said Ankara had worked intensively for the past year on the legislation. He said the European Commission had put forward the proposal, and that the European Parliament and EU Council would still decide on it.

Monday's meeting in Ankara included officials from ministries and institutions with the heads and senior management of the Türkiye Exporters Assembly (TIM), the Automotive Exporters' Association (OIB), the Automotive Industry Association (OSD) and the Automotive Suppliers Association (TAYSAD).

Türkiye's automotive industry supports 250,000 EU jobs, according to OIB.

Concerns being conveyed

Monday's statement said Türkiye's priority is for the "Made in EU" policy foreseen in the draft law to respect the strong economic integration built on the customs union, as well as shared production and supply chains.

It said Turkish officials have held numerous contacts with EU institutions, member states and EU industry representatives since the start of the process, and have conveyed Türkiye's views, expectations and sensitivities at every level.

The private sector is also making many approaches to its counterparts, the statement said, and all work is being carried out in full coordination. Participants agreed to keep pressing for the final text to reflect Türkiye's position, both in member states' positions and in the work of the European Council, Parliament and Commission.

Automotive at heart of integration

The ministry said the automotive sector is one of the most successful areas of the integration created by the customs union, which took effect in early 1996, and forms the backbone of industrial integration between the two sides.

It said any approach must take into account the economic integration created by the customs union, together with joint production, investment and supply networks.

It argued that a law meant to boost the competitiveness of European industry should not hurt investment and existing production networks of European manufacturers themselves. This point, the ministry said, has been the central message of nearly a year of trade diplomacy with all stakeholders in the EU, including member states, officials of the European Parliament, the Council of Ministers and the Commission, and private sector groups.

The ministry said European carmakers and industry representatives are also telling EU decision-makers how strategically important Turkish production and investment are to Europe's automotive ecosystem, in order to avoid disrupting current production and supply chains.

"All of our work aims to develop our joint production capacity and global competitiveness together with the EU, instead of measures that narrow mutual market access," the statement said. It said Türkiye wants the EU to adopt an inclusive approach that reflects the legal and economic realities of the customs union, and will continue its contacts with EU institutions, member states and the private sector at every level.