Treasury and Finance Minister Mehmet Şimşek on Tuesday urged the European Union not to let domestic political concerns block efforts to modernize the customs union between Türkiye and the EU, calling the upgrade “a win-win step” that should proceed without delay.
“Modernizing the customs union would benefit all parties and should not be hindered by internal politics within Europe,” Şimşek told a reception hosted by the Dutch Embassy in Ankara.
The minister pointed to the Netherlands as one of Türkiye’s most significant economic partners and expressed hope that it would play a constructive role in advancing the agreement.
Türkiye is the only non-EU country that has a customs union deal with the bloc. The agreement was struck in 1995. In its Dec. 21, 2016, assessment, the European Commission proposed revamping the deal.
Yet, a host of disagreements over recent years have stalled the negotiations for updating the customs union.
The deeper 1990s-era agreement would be expanded to services, farm goods and public procurement. The current deal only covers a limited range of industrial products.
Şimşek was in Brussels earlier this month for the first Türkiye-EU High-Level Economic Dialogue in six years. He called it "a very important and positive step to improve relations."
For decades, Türkiye and the bloc have 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, maritime issues with Greece and Greek Cyprus, and EU policies on Syrian refugees.
Russia's invasion of Ukraine has pushed the European Union to seek deeper security ties with Türkiye, a NATO ally and long a candidate to join the 27-nation bloc.
On Tuesday, Dutch Ambassador Joep Wijnands said Türkiye is a "key partner in strengthening European security.”
"Türkiye is a member of the Council of Europe, a candidate for European Union membership and a key partner in strengthening Europe's security. My country feels more than ever that we need each other," Wijnands noted.
He said the Netherlands and Türkiye are more than partners, also emphasizing the shared security interests of both countries as NATO allies, particularly amid ongoing geopolitical tensions.
"My country values Türkiye's significant contributions to fulfilling NATO's core missions. This year's NATO summit will be held in June in The Hague, while next year's summit will take place in Türkiye," he noted.
Both Şimşek and Wijnands called for deeper cooperation between Türkiye and the Netherlands.
Şimşek emphasized the strength of Dutch-Turkish relations and called for deeper trade and investment ties with Europe at large.
Last year, bilateral trade between the two countries reached $13 billion. The Netherlands is the biggest foreign investor in Türkiye, and in 2024, 1.3 million Dutch citizens visited the country.
Şimşek highlighted Türkiye's diversified economy, advanced infrastructure and skilled labor force, and invited more Dutch investors to explore opportunities in the country. He also noted the strong presence of Turkish entrepreneurs in the Netherlands.
Rising protectionism and mounting geopolitical uncertainty since the global financial crisis have created challenges, Şimşek said, but also underlined the importance of regional integration.
He stressed regional integration as the most effective antidote to rising protectionism, emphasizing the necessity for stronger economic ties between Türkiye and the EU.
Wijnands emphasized what he said is the long-standing commercial and diplomatic relationship between the two countries, which dates back more than 400 years.
“Trade is in the DNA of both our nations,” he said.
The ambassador noted that 23% of all foreign investment in Türkiye comes from the Netherlands. Likewise, 25% of Turkish outbound investment is directed to the Netherlands, which he called Türkiye's number one investment destination.
Wijnands also addressed ongoing frustrations over visa access for Turkish nationals, saying that the Dutch government had significantly increased its visa processing capacity and issued a larger number of visas to Turkish applicants last year.
The Turkish citizens and business community have been increasingly exasperated by the bureaucratic hurdles involved in securing Schengen visas, a system that was once considered routine but has now become an obstacle for many.
Lengthy processing times and a growing number of EU visa rejections in recent years turned into a row that has been straining already sensitive relations.
