Turkey’s Position in the EU Market

IKV Assistant Expert Melike Sönmez shared her assessment on Turkey’s rising export sectors in the EU market.

Key points from Melike Sönmez’s article:

Historical background and Customs Union:
Turkey’s integration with the EU started with the 1963 Ankara Agreement. Trade relations gained a big boost with the Customs Union, which started in 1996. The Customs Union allows Turkish industrial products to enter the EU market without taxes or quotas, giving exporters a competitive advantage.

Need to update the Customs Union:
Due to current structural problems, expanding the Customs Union to include agriculture, services, and public procurement would strengthen Turkey’s advantages and help get the most benefit from trade relations.

EU’s new trade policies and the need to adapt:
The EU is reshaping trade rules with the Green Deal and digital/ethical regulations. These policies make it necessary for Turkish exporters to adjust their production and export processes to meet new standards in order to maintain their market share in the EU.

Rising sectors and opportunities:
Exports of defense, aviation, and space products have increased in recent years. Automotive and high-tech products are also on the rise. These sectors show Turkey’s potential to create high-value products in the EU market, but some are sensitive to political and strategic risks.

Turkey’s competitive advantages:
Geographical proximity, low logistics costs, strong trade relations, and the benefits from the Customs Union are key factors that increase Turkey’s competitiveness in the EU market.

Global changes and new competition:
The EU’s efforts to diversify its supply chain, the Russia–Ukraine war, and global crises create both opportunities and new competition for Turkey. Therefore, increasing capacity and innovation in strategic sectors is critical.

Strategic priorities:
According to Melike Sönmez, to maintain and increase competitiveness in the EU market, Turkey needs to:

  • Update the Customs Union,

  • Strengthen technology and innovation capacity,

  • Adapt to the Green Deal and digital regulations,

  • Improve the branding and certification of Turkish products.

Full report:
https://www.ikv.org.tr/images/files/ikv_degerlendirme_notu_t%C3%BCrkiyenin_ab_pazarinda_yukselen_ihracat_sektorleri_melike_sonmez.pdf