Türkiye welcomed the announcement of the European Union's long-awaited industry policy aimed at strengthening its capabilities across strategic sectors, which would allow Ankara's inclusion due to its customs union agreement, describing it as "a positive and constructive decision."
Trade Minister Ömer Bolat said on Wednesday that the legal confirmation of Türkiye's inclusion in the "Made in EU" policy marks "a significant step for trade relations."
The European Commission unveiled earlier in the day a legislative proposal to strengthen Europe's industrial base by introducing "Made in EU" and low-carbon requirements for strategic sectors.
The measure, also known as the Industrial Accelerator Act (IAA), targets industries, including steel, cement, aluminum, automobiles and net-zero technologies, while allowing for future expansion to energy-intensive sectors such as chemicals.
The new rules aim to bolster the bloc's industries against fierce competition from China, in a push held up for months by wrangling over the scope and details of measures some see as protectionist.
Concerning strategic sectors including cars, green tech and steel, the proposal is a key part of a European Union drive to regain its competitive edge, reduce its dependencies and stave off job losses.
The draft regulation states that countries with an agreement creating a free-trade area or customs union with the EU would be considered local. That implies countries in the European Economic Area (EEA), such as Norway and Iceland, and also Türkiye, which has a customs union with the EU.
"It is a change in doctrine – one that was unthinkable just a few months ago," EU industry chief Stephane Sejourne told a news conference.
Broadly, the rules aim to ensure that public and foreign investments support manufacturing inside the 27-nation bloc, explained an EU official. To that end, they say companies that want public money must meet minimum thresholds for EU-made parts and subject large investments from dominant foreign firms to conditions, including employing EU workers.
The European Commission said the package aims to bring manufacturing's share of the EU's gross domestic product (GDP) to 20% by 2035, up from about 14% in 2024.
Initially expected last year, the measures strongly backed by France were pushed back several times due to disagreements, with some arguing they run counter to the EU's pro-free-trade spirit.
Much of the discord revolved around the geographical scope of "Made in Europe."
Sceptics, including the EU's largest economy, Germany, argued trade partners should be included in the definition under a "Made with Europe" approach.
Brussels settled for a compromise based on the principle of reciprocity.
Countries that have deals with the EU allowing for European companies to access public money on a par with local firms in the sectors concerned would be brought into the fold.
Bolat said on social media that recognizing the existing customs union within the framework of the new industrial policy is a constructive decision for the continuity of investments and the competitiveness of European value chains.
"We are pleased that the intensive and constructive diplomatic engagements we have conducted in recent times with the European Union, based on mutual understanding in economic and trade matters, have yielded positive results," he said in a post on X.
"As a result of the consultations conducted with the EU, the legal basis enabling the 'EU origin' requirement in the most recently published draft to encompass our country in principle within the framework of the customs union has been confirmed with the Industrial Acceleration Act, constituting an important step for our trade relations."
Türkiye has a customs union with the EU dating back to the 1990s, and the two are major trading partners, with bilateral trade volume at over $200 billion yearly.
Of particular concern was the inclusion of Türkiye in the initiative due to its strong automotive base, where the country, in recent years, surpassed $40 billion in exports – large chunk of which is directed to European markets, such as Germany, France, Italy, Romania, and others.
Bolat expressed satisfaction with the positive results of the intensive and constructive diplomacy conducted with the EU on economic and commercial issues.
The minister emphasized that Türkiye is an inseparable and reliable part of European value chains in many critical sectors, particularly the automotive industry.
"This development is expected to further deepen sectoral integration between Türkiye and the EU, while accelerating the green and digital transformation of our value chains," he added.
"The goal is to further strengthen Türkiye's position within the European industrial ecosystem and to advance economic integration with the EU, including the modernization of the customs union. We would like to thank everyone involved, especially our trade minister, Mr. Ömer Bolat, for their great efforts in this process," said Rifat Hisarcıklıoğlu, the president of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB).
The "Made in Europe" requirements, which also seek to boost industrial decarbonisation, would apply to "strategic sectors," namely: steel, cement, aluminium, cars, and net-zero technologies.
Governments putting money behind infrastructure projects will have to ensure they include a minimum share of European low-carbon steel, cement and aluminium, among other provisions.
Electric-vehicle (EV) manufacturers will have to make sure at least 70% of their cars' components are made in the EU to access public money.
Similar rules will apply to batteries, solar, wind, and nuclear.
The proposal, formally known as the "Industrial Accelerator Act," also aims to ensure foreign companies partner with European firms to set up shop in the bloc.
To do so, it imposes conditions on foreign investments of over 100 million euros ($116 million) in "emerging strategic sectors" such as batteries and EVs.
