A New EU Industrial Policy Could Change Trade with Turkey
- Mar 18
- 4 min read
A New EU Industrial Policy Could Change Trade with Turkey
The European Commission has unveiled a major new proposal aimed at strengthening Europe’s industrial base. Known as the Industrial Accelerator Act, the draft legislation introduces the concept of “Made in EU” manufacturing preferences for strategic industries and supply chains.
The proposal is designed to boost European manufacturing and reduce reliance on overseas suppliers, particularly in sectors such as clean technology, energy infrastructure and heavy industry. The EU hopes to increase the share of manufacturing in its economy from about 14% today to around 20% by 2035.
What makes the proposal particularly significant for Turkey is that countries with deep economic integration with the EU — including those with customs union agreements — may have their products treated as effectively European for certain procurement rules and industrial policies.
Since Turkey has had a customs union with the EU since 1995, this could allow some Turkish-produced goods to benefit from the new “Made in EU” framework.
Why the EU Is Introducing the Industrial Accelerator Act
The legislation is part of a broader effort by the European Union to rebuild its industrial competitiveness amid global economic competition.
The EU faces increasing pressure from both the United States and China, which have introduced aggressive industrial policies and subsidies for domestic manufacturing. In response, Brussels is seeking to strengthen European production in areas such as:
Renewable energy technologies
Electric vehicles and batteries
Steel, aluminium and cement
Hydrogen and nuclear energy systems
Clean technology manufacturing
Under the draft law, public procurement and state support may prioritise low-carbon products manufactured within Europe or within closely integrated supply chains.
The aim is to encourage companies to build factories and supply networks closer to the European market.
What It Could Mean for Turkish Manufacturers
If the proposal is approved in its current form, Turkish companies could gain a significant advantage when selling into the European market.
According to Turkey’s Trade Minister Ömer Bolat, the draft law represents an important milestone for EU-Turkey economic relations. Turkish goods produced under the customs union framework may qualify as part of the European supply chain under certain conditions.
Potential benefits for Turkish companies include:
1. Easier Access to EU MarketsProducts manufactured in Turkey could compete more directly with European producers when governments or public bodies award contracts.
2. Participation in EU Public ProcurementTurkish firms may be able to participate in government tenders linked to infrastructure, clean energy and industrial projects within EU countries.
3. Strengthening Industrial Supply ChainsTurkey already plays a major role in European manufacturing networks, particularly in automotive parts, steel production and machinery.
For many industries, Turkey functions as a near-shore production hub for European companies.
Industries Likely to Be Affected
Several major industrial sectors could be influenced by the new rules if they are adopted.
These include:
Steel and aluminium manufacturing
Cement production
Electric vehicles and automotive supply chains
Batteries and energy storage technology
Renewable energy equipment such as wind turbines and solar components
These sectors are considered strategic because they support Europe’s energy transition and industrial independence.
The legislation also introduces low-carbon production criteria, meaning manufacturers will increasingly need to meet environmental standards to qualify for EU industrial programmes.
Political Debate Inside Europe
The proposal has already sparked debate among EU member states and industry groups.
Some governments support the plan as a way to rebuild Europe’s industrial strength and reduce reliance on imports. Others worry that the policy could lead to trade disputes or increase costs for businesses.
Questions also remain about which non-EU countries will qualify for the “Made in EU” status, and whether the definition will be expanded to include other partners such as the United Kingdom, Japan or additional supply-chain allies.
The legislation still needs approval from both the European Parliament and EU member states, meaning the final rules may change before becoming law.
Why This Matters for Northern Cyprus
Although Northern Cyprus is not part of the EU and remains politically unrecognized by the bloc, the economic consequences of closer EU-Turkey industrial ties could still be felt locally.
Turkey is the primary economic partner and supplier for Northern Cyprus. Any increase in Turkish industrial exports to Europe could have several indirect effects:
1. Increased Economic Activity in TurkeyStronger Turkish manufacturing could lead to greater economic growth in the region, which historically benefits Northern Cyprus through trade and investment.
2. Supply Chain OpportunitiesBusinesses in Northern Cyprus may find opportunities supporting Turkish companies in logistics, services or regional operations.
3. Renewable Energy InvestmentBecause the EU policy focuses heavily on green technologies, Turkish renewable energy production could expand significantly — potentially affecting regional energy projects.
A Strategic Shift in Global Trade
The Industrial Accelerator Act signals a significant shift in how the European Union approaches industrial policy.
For decades, the EU relied heavily on global free trade and international supply chains. Now, like many other major economies, Europe is moving toward strategic industrial partnerships and regional manufacturing ecosystems.
For Turkey, this could represent one of the most important economic opportunities in recent years.
And for regions closely linked to Turkey — including Northern Cyprus — the ripple effects could extend far beyond the factories themselves.
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