Türkiye-EU trade deal ‘stuck in the past', business group pushes for reform
At a media briefing held at the Press Club Brussels Europe, Markus Slevogt, chairman of the European Turkish Trade and Investment Council (ETTIC), renewed calls for an urgent upgrade of the Customs Union agreement between Türkiye and the European Union.
Drawing a comparison to “still running on Windows 2.0”, Slevogt criticized the existing framework for failing to meet modern trade and economic demands.
Established in 1995, the Customs Union is based on policy structures that date back as far as the 1970s. Slevogt argued that this decades-old foundation is incompatible with today’s dynamic environment, including the rise of digital commerce, artificial intelligence, and increasingly complex global supply chains.
Outdated structure limits potential of bilateral trade
“The current structure is no longer fit for purpose,” Slevogt told reporters. He highlighted the need for a revised agreement that reflects contemporary business practices and includes key areas previously excluded—such as agriculture, services, public procurement, e-commerce, and dispute resolution.
Slevogt warned that failing to modernize the Customs Union could undermine the full potential of Türkiye-EU economic cooperation and leave both sides unprepared for emerging global trade realities.
Recent talks signal momentum for reform
Efforts to update the agreement have gained momentum, notably following the first High-Level Dialogue on Trade between Türkiye and the EU on July 8, 2024. The resumption of the High-Level Economic Dialogue (HLED) in April 2025 also reflects renewed political and institutional commitment to progress.
Despite Türkiye’s long-standing participation in the Customs Union, it does not automatically benefit from the EU’s trade agreements with third countries. This exclusion continues to pose challenges for Turkish exporters, compounded by road transport quotas and Türkiye’s limited role in EU decision-making mechanisms.
Türkiye remains a key trade partner for the EU
Slevogt reaffirmed the strength of the current economic relationship. The EU accounts for over 40% of Türkiye’s total trade, with bilateral trade reaching €230 billion ($266.81 billion). European firms have invested approximately €210 billion in Türkiye since 2002, indicating a deep and enduring economic partnership.
“This is a long-term commitment that reflects the strength and depth of our economic relationship,” he noted, emphasizing the EU’s critical role in Türkiye’s economic ecosystem.
Keeping trade separate from political disputes
Slevogt cautioned against letting political issues interfere with economic cooperation. “We are businesspeople. We leave politics to the politicians. We want to keep business separate from politics,” he said, urging both sides to adopt a pragmatic approach focused on shared economic interests.
He argued that updating the Customs Union is the most straightforward and effective way to strengthen trust and cooperation between Türkiye and the EU.
Strategic defense cooperation also highlighted
Beyond trade, Slevogt advocated for enhanced strategic collaboration in the defense sector. He said regional and global security dynamics make closer coordination between Türkiye and the EU increasingly important.
“The world is changing fast. Europe and Türkiye must act together where our security interests overlap,” he stated, proposing that defense ties evolve alongside economic integration.
ETTIC aims for business-oriented solutions
ETTIC was founded by European bilateral chambers of commerce from countries with significant investments in Türkiye. According to Slevogt, the Council’s objective is to support pragmatic and forward-thinking solutions that promote a stable, predictable environment for trade and investment.
He concluded the briefing by calling on EU policymakers to take concrete steps toward updating the Customs Union, emphasizing the substantial mutual benefits such a modernization would provide.
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