Steel, aluminium, batteries, solar panels, wind turbines; these are the materials and technologies at the centre of Europe's industrial future. And as of March 4, 2026, they are also the sectors through which Turkey has secured one of its most significant trade wins in years. The EU's Industrial Accelerator Act (IAA), published in draft by the European Commission this week, extends 'Made in EU' origin status to countries with a customs union or free trade agreement with the bloc, a provision that directly covers Turkey, which has maintained a customs union with the EU since 1996.
At the heart of this development is a recognition that Turkey is not a peripheral supplier to Europe, it is an inseparable part of European value chains. Turkish steel flows into European construction and manufacturing. Turkish aluminium feeds into components assembled across the continent. Turkish automotive plants produce vehicles and parts for Ford, Fiat, Renault, Toyota, and Mercedes. This industrial reality is what drove Ankara's diplomatic push, and it is what ultimately shaped the IAA's origin clause. Trade Minister Ömer Bolat called it an important step for bilateral commercial relations. But the Act is still a draft, and the legislative battle in Europe is only just beginning.
Steel, Aluminium, and the Materials at the Heart of the Act
The Industrial Accelerator Act is built on the recommendations of Mario Draghi's landmark competitiveness report. Its central purpose is to increase demand for low-carbon, European-made products by tying public procurement and state aid to 'Made in EU' and 'low carbon' requirements, with the goal of raising manufacturing's share of EU GDP from 14.3 percent to 20 percent by 2035. The sectors targeted are the backbone of both heavy industry and the energy transition: steel, aluminium, cement, chemicals, and net-zero technologies, including batteries, solar panels, wind turbines, heat pumps, and electrolysers. The automotive industry is also covered, with procurement preference for EVs assembled in the EU with at least three battery components and 70 percent of non-battery parts made within the bloc.
Turkey's position in several of these categories is substantial. It is one of Europe's largest steel producers, with crude steel output of approximately 34 million tonnes in 2024, second only to Germany in the wider European region. Turkish aluminium processing capacity has grown significantly, and the country is increasingly embedded in European battery supply chains as a processor of intermediate materials and a manufacturer of components. Under the IAA's key origin clause, products from countries with a customs union or FTA with the EU shall be deemed of Union origin, all of these goods qualify for 'Made in EU' treatment in public tenders and subsidy schemes, removing what would have been a serious competitive disadvantage.
Reactions From the Business Circles
TOBB chairman Rifat Hisarcıklıoğlu called the outcome extremely important and strategic, the result of effective public-private trade diplomacy at a time of deepening trade wars and rising geopolitical risk. DEİK chair Nail Olpak welcomed the news but emphasised that the priority now is ensuring the draft is enacted with the gains intact. Istanbul Chamber of Commerce president Şekib Avdagiç was most direct: without inclusion, 'Made in EU' networks would have created a structural competitive disadvantage for Turkish manufacturers. He used the moment to reiterate broader demands, formal EU membership, immediate visa liberalisation, and without-delay modernisation of the Customs Union, which has not been updated since it came into force in 1996.
Not everyone in Europe is satisfied. The European Trade Union Confederation (ETUC) has raised concerns about extending 'Made in Europe' status beyond EU borders. Wolfgang Katzian of the Austrian Trade Union Federation warned that the label must not become 'Made with Europe,' arguing that doing so would undermine the initiative's core purpose of strengthening European value creation and protecting jobs. This reflects a genuine divide: between those who want reindustrialisation within EU borders, and those who recognise that European supply chains, particularly in steel, automotive, and batteries, are already too transnational for a narrow definition to be economically coherent.
It Is A Real Win, With Real Caveats
Turkey's inclusion in the 'Made in EU' origin framework is a genuine achievement, commercially, diplomatically, and symbolically. It protects Turkish manufacturers from being reclassified as third-country suppliers, preserves the logic of the Customs Union under real pressure, and affirms that Brussels still regards Turkey as a structural part of the European industrial system even without formal membership.
But the Act must still pass through the European Parliament and the Council, and there is no guarantee the origin clause survives unchanged. The ETUC's objection is a live political force, not a fringe position. Meanwhile, the Customs Union itself remains frozen at its 1996 scope, excluding services, agriculture, and public procurement, the very areas Bolat is now pushing to open on a reciprocal basis. Whether this moment catalyses a genuine modernisation of the Turkey-EU relationship, or simply patches over an immediate threat, will depend on political will on both sides in the months ahead. For now, Turkish manufacturers remain inside Europe's industrial tent, at least on paper.
Sources:
Austrian Trade Union Federation: https://www.presse-nachrichten.de/2026/03/04/oegb-katzian-made-in-europe-macht-nur-mit-hochwertigen-arbeitsplaetzen-sinn/
Turkish Ministry of Trade’s announcement: https://x.com/omerbolatTR/status/2029211603950768415?s=20
President Turkish Union of Chambers’ comments: https://x.com/RHisarciklioglu/status/2029271214842364074?s=20
President of DEİK’s comments: https://x.com/NailOlpak/status/2029291620265246949?s=20
Istanbul Chamber of Commerce president’s comments: https://x.com/SekibAvdagic/status/2029286849995248097?s=20
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GÖNÜLTAŞ, Mehmet（Reporter）
Freelance journalist based in Istanbul, Turkey. He writes on international relations and diplomacy, with a focus on Japan–Turkey relations, military affairs, and democratic governance. His hobbies are running, language study, and traveling.
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