DIŞYÖNDER President Dr. Hakan Çınar has warned that the European Union's proposed "Made in EU" initiative under the Industrial Accelerator Act could pose a significant risk to Turkish exporters. Although Türkiye is legally covered through the Customs Union, Çınar said the regulation could, in practice, disadvantage Turkish companies in public procurement and state-supported projects. He warned that the proposal should not be viewed as a simple technical amendment, but as a development that could reshape Türkiye's position in the European value chain.
Background to the proposal
The initiative is part of the EU's strategy to strengthen its industrial base after manufacturing's share of GDP declined from 18.4% in 2000 to 14.3% in 2024. The European Commission aims to raise this figure to 20% by 2035 by giving preference to European-made, low-carbon products in public procurement and subsidy schemes across strategic sectors including automotive, steel, aluminium, cement, chemicals, batteries, wind turbines and photovoltaics.
Will Türkiye be included?
According to the proposal announced by European Commission Executive Vice-President Stéphane Séjourné, products from countries with a Customs Union or free trade agreement with the EU will, in principle, qualify as EU-origin. However, this remains subject to reciprocity rules in public procurement, meaning Türkiye's final status will depend on the legislation's final wording and future agreements.
Automotive sector faces the biggest risk
Çınar warned that if Türkiye is ultimately excluded from the scope of the regulation, Turkish products could be treated as imports and lose access to European public tenders. He highlighted the automotive industry in particular, noting that local-content requirements for electric vehicles could directly threaten one of Türkiye's largest export sectors.
European investors could also be affected
Çınar argued that the proposal would not only impact Turkish manufacturers but also European companies operating in Türkiye. He noted that around 42% of Türkiye's exports go to the EU, with roughly two-thirds of those exports produced by European-owned factories in the country. According to him, any restriction on Turkish exports would also undermine European investments and supply chains.
No consensus within the EU
The proposal remains controversial among EU member states. While France strongly supports the initiative, Germany, the Netherlands, Sweden, Finland and several other countries have expressed concerns that strict local-content requirements could reduce competitiveness and increase procurement costs. Germany has instead advocated a broader "Made with Europe" approach that would also recognize key trade partners.
Compliance requirements will increase
Çınar emphasized that inclusion in the scheme would not eliminate challenges. Turkish companies would still need to comply with stricter EU requirements on rules of origin, supply chain transparency, documentation, ERP systems and customs data management. He warned that exporters in sectors such as automotive components, steel, machinery, batteries and textiles should begin preparing immediately.
DIŞYÖNDER urges companies to prepare
Concluding his remarks, Çınar called on Turkish exporters not to wait for the legislative process to be finalized. While diplomatic efforts between Türkiye and the EU continue, he urged companies to strengthen their origin verification and supply chain compliance systems now, warning that delaying preparations could result in a significant loss of competitiveness in the European market.
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