EU Industrial Accelerator Act reshapes Türkiye's market position

The European Union’s Industrial Accelerator Act, designed to boost production in strategic sectors through “Made in EU” content specifications, will prove decisive for future supply chain ties between Brussels and Ankara as the bloc seeks to reduce its dependence on Chinese manufacturing.

Customs Union integration

Türkiye has remained deeply integrated into European production networks for nearly three decades through the Customs Union, playing an active role in sectors spanning automotive, machinery, steel and chemicals. The draft regulation includes provisions to evaluate production originating from Türkiye as European under certain conditions, though business leaders said this approach amounts more to preserving the current status quo than creating new opportunities for Turkish firms.

Procurement limitations

The definition of European content remains limited to production carried out in member states, a restriction that could harm Turkish producers by reducing their access to incentives and public procurement and creating competitive disadvantages against European rivals. Experts noted that excluding Türkiye from the Made in EU specification would increase costs for Turkish manufacturers and numerous European firms that rely on Turkish suppliers, particularly in the automotive sector where Ankara serves as a major production hub for global automakers.

Industry warnings

Mehmet Ali Yalcindag, chair of the Türkiye-Europe Business Council at the Foreign Economic Relations Board (DEIK), stated that the automotive industry would face the most significant impact given its multi-layered value chains spanning battery technologies, semiconductors, critical raw materials and artificial intelligence production systems. “It is a strategic necessity to ensure products made in Türkiye are integrated in Europe’s industrial ecosystem without being subjected to quotas, obstacles, or additional barriers, not only for the Turkish private sector but also for the EU’s industrial transformation and global competitiveness,” he said, adding: “Excluding Türkiye would affect Turkish firms and EU firms investing in Türkiye alike, as well as European manufacturers sourcing from Türkiye, affecting the bloc’s competitive production capacity — restricting Turkish production in strategic sectors would drive up costs, reduce the resilience of supply chains, and weaken the EU industry against global competitors.” Yalcindag urged Brussels to focus on updating the Customs Union rather than erecting new barriers, noting that the draft legislation could still change amid ongoing negotiations between member states and the European Parliament.