Turkey’s inclusion in the Made in EU draft is a positive step for its automotive, steel and other industries, Turkish Trade Minister Omer Bolat said in a statement March 5.
“We are pleased that the intense and constructive diplomacy traffic we have recently carried out with the European Union on economic and commercial issues on the basis of mutual understanding has yielded positive results,” the minister said, citing the EU’s recently published Industry Acceleration Act.
“The recognition of the existing Customs Union with Turkey within the framework of IAA, and the “Made in EU” policy, has been a positive and constructive decision in terms of the continuity of the investments and initiatives of both sides and the competitiveness of the European value chains,” he said.
As an integral and reliable part of European value chains across many critical product groups, especially in the automotive sector, Bolat said the development is expected to further deepen sectoral integration between Turkey and the EU and accelerate the green and digital transformation of value chains.
“In the coming period, we will continue to resolutely maintain our close contact with the EU in visionary areas such as mutual opening in public procurement markets, connectivity and green transformation based on the principle of reciprocity, and to deepen and further strengthen our economic partnership,” the minister said.
The IAA, presented by European Commission Vice President Stephane Sejourne March 4, introduces local content requirements for public procurement, new conditions on foreign investment and streamlined permitting for industrial projects.
The measures target sectors such as cement and aluminum, as well as net-zero technologies like batteries, solar, wind, heat pumps and nuclear.
For steel, the IAA proposes specific low-carbon preferences to stimulate demand.
Turkey’s steel exports declined 18.4% year over year to 911,800 metric tons in January due to low demand in key export destination, the EU, as well as uncertainties on CBAM, according to the latest Turkish Steel Producers’ Association data shared with Platts, part of S&P Global Energy.
Turkish steelmakers were expecting a recovery in EU demand in the coming months as existing uncertainties resolve, according to their latest statements.
The Platts weekly Turkish HRC assessment was at $590/metric ton ex-works Feb. 27, stable week over week.
