What's Happening?
The European Union's 'Made in EU' industrial policy is set to impact Turkey by integrating it further into European supply chains while requiring regulatory alignment with EU standards. This policy, part of the European Commission's Industrial Accelerator
Act, aims to bolster Europe's manufacturing base and reduce reliance on global competitors. Although primarily targeting EU member states, Turkey's existing customs union with the EU means it could be included in the initiative. However, Turkey must reciprocate by opening its public procurement markets to EU companies, aligning its regulations with EU standards.
Why It's Important?
This development is significant as it underscores the complex trade-offs Turkey faces in maintaining access to the EU's industrial ecosystem. While the policy offers economic opportunities by preserving Turkey's role in European supply chains, it also demands significant regulatory concessions. This could lead to deeper economic integration with the EU, impacting Turkey's domestic policies and industries. The initiative reflects broader EU efforts to strengthen its manufacturing capabilities and reduce external dependencies, particularly in strategic sectors like automotive and renewable energy.
