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The existing Customs Union framework no longer reflects contemporary trade and investment realities, President of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), Rifat Hisarciklioglu, said Tuesday, calling for an urgent modernization.
Speaking at the launch of the Türkiye-EU Business Dialogue II (TEBD II) Project, said global commerce is undergoing profound change amid increasing protectionism, supply chain restructuring, and technological shifts. Hisarciklioglu argued that the Customs Union must expand to cover services, agriculture, public procurement, and e-commerce, while boosting alignment in areas such as digital and environmental standards and product compliance.
Modernizing the Customs Union is "not just a trade matter" but also critical for strategic alignment, competitiveness, and mutual security between Türkiye and the EU, he said.
The Customs Union is a trade agreement that has been in effect since 1996, allowing the free movement of industrial goods between Türkiye and European Union member states without customs duties or quantitative restrictions. However, it does not extend to key sectors such as agriculture, services, or public procurement.
Türkiye became the EU’s fifth-largest trading partner in 2025, with bilateral trade totaling $232.7 billion and exports to the bloc reaching $117 billion.
The TOBB chief also addressed practical barriers faced by Turkish exporters and businesspeople in their dealings with the EU. He highlighted long wait times for visa appointments and a lack of clarity in the process, which he said hampers participation in trade fairs and complicates supply relationships.
In addition, he noted that road transport quotas imposed by EU member states are raising costs and delaying deliveries in Türkiye-EU trade. "We must resolve this issue to make trade more efficient," he said, business-focused ekonomim.com reported.
Hisarciklioglu also expressed concern over the EU’s emerging "Made in Europe" industrial policy, an initiative aimed at boosting domestic production and reducing reliance on external suppliers, warning that efforts to strengthen the bloc’s manufacturing resilience should not come at the expense of established trade relationships.
"While the goal of strengthening European industry is understandable, this approach should not evolve into a protectionist and exclusionary framework," he said. "Türkiye has been integrated into Europe’s industrial production network through the Customs Union for 30 years."
Pointing to the EU’s high dependence on external sources for critical raw materials and rare earth elements, Hisarciklioglu emphasized Türkiye’s strategic position within European supply chains.
As an EU candidate country, he argued, Türkiye could help mitigate these vulnerabilities if deeper cooperation is pursued. "Long-term competitiveness for both Türkiye and the EU requires more resilient and durable partnerships," he said.
Hisarciklioglu also announced the €6 million ($7 million) EU-funded Türkiye-EU Business Dialogue II (TEBD II) initiative, which will run until 2027 and support 18 joint projects between Turkish and EU chambers focused on green and digital transformation, energy efficiency, rural development, and institutional capacity-building.
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