The European Union’s proposed Industrial Accelerator Act could shape the future of production and supply chain ties between Türkiye and the bloc, as Turkish business representatives warn that “Made in EU” rules may create risks for companies already integrated into European value chains.
The draft regulation aims to increase European production in strategic sectors and reduce dependence on China, particularly in clean technologies, automotive, batteries, steel, chemicals and critical raw materials.
It would link access to public procurement, state aid and certain incentive programs to local-content requirements in the EU.
For Türkiye, the main issue is whether products made in the country will be recognized within the bloc’s European content criteria.
Türkiye has been deeply integrated into European production networks for nearly three decades through the customs union, with Turkish companies playing active roles in automotive, machinery, steel, chemicals and other industrial sectors.
The draft includes an approach under which production from Türkiye could be treated as European under certain conditions. However, business leaders say this would largely preserve the current position rather than create new advantages for Turkish firms.
If Turkish production is excluded from the “Made in EU” framework, companies could face weaker access to incentives and public procurement opportunities, creating a competitive disadvantage against EU-based rivals.
Experts also warn that excluding Türkiye could increase costs not only for Turkish producers but also for European companies that rely on Turkish suppliers.
The automotive sector is expected to be among the most affected areas, given Türkiye’s role as one of Europe’s major vehicle production hubs and a key supplier for global manufacturers.
Mehmet Ali Yalçındağ, chair of the Türkiye-Europe Business Council at the Foreign Economic Relations Board, or DEİK, said Türkiye has been part of Europe’s supply and value chains for nearly three decades through the customs union.
He said the automotive industry would be particularly sensitive to the new rules because it covers not only vehicle production but also battery technologies, semiconductors, critical raw materials, software, artificial intelligence-based production systems and energy efficiency.
Yalçındağ said Türkiye is one of Europe’s key partners in green and digital transformation due to its supplier base, engineering capacity, electric vehicle ecosystem and investments in low-carbon production.
“It is a strategic necessity to ensure products made in Türkiye are integrated into Europe’s industrial ecosystem without quotas, obstacles or additional barriers,” he said.
He warned that excluding Türkiye would affect Turkish companies, EU firms investing in Türkiye and European manufacturers sourcing from the country.
Yalçındağ said such a move could raise costs, weaken supply chain resilience and reduce the competitiveness of EU industry against global rivals.
He called on the EU to focus on updating the customs union and developing common industrial policies instead of creating new barriers.
