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Turkish President Recep Tayyip Erdogan wrote a letter to the European Commission president last month expressing concern over a draft EU regulation that would prioritise “Made in Europe” automotive products in public procurement.
Officials familiar with the matter told Middle East Eye that Erdogan sent the letter on 4 December. They said it was part of a broader effort by Ankara to warn that treating Turkey as a third country in such initiatives could have unintended consequences for regional value chains and the EU-Turkey Customs Union.
According to a draft proposal, the European Union plans to introduce minimum local-content requirements for public purchases of key green technologies, such as batteries, solar and wind components, and electric vehicles, to bolster its domestic industries.
Under the plan, for example, the lowest price will no longer be the sole EU procurement criterion when items such as fleets of new public buses or cars are purchased.
“If Turkey is excluded from this programme, it would effectively mark the end of the customs union for several of our industries, particularly the automotive supply sector, whose growth has largely been built on the foundations of that agreement,” said Ussal Sahbaz, an Istanbul-based consultant.
Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newslettersTurkey and the European Union established their Customs Union in 1995 as part of Ankara’s pathway toward EU membership.
The deal covers industrial goods and processed agricultural products, but excludes key sectors such as services, agriculture, and digital trade.
In 2025, Turkey’s automotive exports to the EU totalled around $30bn, accounting for 72 percent of the country’s total automotive exports, including parts and components.
The draft legislation notes that while EU countries must ensure that products meet a minimum percentage of European-origin content, there will be certain exemptions for countries that maintain free trade agreements with the bloc.
Barcin Yinanc, a Turkish columnist who first reported on Erdogan’s letter, wrote on Sunday that the draft regulation guarantees that the EU will continue to uphold its international obligations.
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Read More »“According to business representatives, the customs union between Turkey and the EU should fall under this definition of international obligations,” Yinanc said.
The draft meanwhile defines “Made in Europe” to include EU member states and countries in the European Economic Area – Iceland, Norway and Liechtenstein – while excluding Turkey.
An official told MEE that the legislation, expected to be revealed this week, has yet to be ratified, and reaching consensus within the European Parliament and the Council could take months, if not a year.
The official noted that there remains room for exemptions, given Turkey’s unique economic integration with the EU.
“Unfortunately, although Turkish companies rank among Europe’s top manufacturers, they have long relied on official institutions to conduct their lobbying efforts in Europe,” Sahbaz added.
“Our companies must now begin to carry out their own direct and continuous lobbying, just as American or Chinese firms do.”