“Made in EU” and Türkiye what the net-zero industry act means for business

Türkiye on the “Made in EU” agenda: opportunities and obligations

In March 2026, the European Commission published a draft of the Net-Zero Industry Act, a legislative proposal that carries significant implications for Türkiye’s economic relationship with the EU. The draft introduces a preference for “European-origin” products in public procurement, industrial incentives, and large-scale infrastructure projects. Notably, it establishes a legal basis for products originating from Customs Union partners, including Türkiye, to qualify as “Made in EU” in principle.

The meaning and limits of the scope

Under the draft regulation, certain products manufactured in Türkiye may qualify as “EU-origin,” provided they meet the relevant requirements. This would effectively position Türkiye as a recognised part of Europe’s manufacturing ecosystem. The conditions, however, are substantial: products must comply with EU standards, particularly environmental and carbon-related criteria, satisfy reciprocity requirements in areas such as public procurement, and meet specific regulatory benchmarks. Importantly, the EU retains the right to narrow the scope of this framework at its discretion, meaning that inclusion is neither automatic nor guaranteed.

Türkiye already serves as an indispensable link in European supply chains across sectors such as automotive, machinery, steel, and chemicals. Formal recognition under the “Made in EU” label, widely regarded in global markets as a mark of quality, safety, and ethical production, would add a powerful dimension to this role. Combined with Türkiye’s logistical advantages and manufacturing capacity, such recognition could significantly enhance the country’s attractiveness for foreign direct investment.

The EU’s underlying objective seemingly is to reduce dependence on geographically distant suppliers, particularly China, and to rebuild supply chains through reliable, proximate partners. Türkiye’s inclusion serves this strategic goal while also protecting EU companies that are already deeply integrated with Turkish manufacturing.

Opportunities and risks to be considered

The draft presents tangible opportunities for Turkish industry in the form of access to European public procurement markets, deeper integration into manufacturing value chains, and the ability to capture export gaps that may arise if certain countries fall outside the framework’s scope. It may also open a pathway to the EU’s green transition funding mechanisms.

That said, the associated risks warrant careful consideration. Low-carbon production requirements and conditions relating to critical components may drive up production costs, and compliance will demand sustained investment in both regulatory alignment and operational adaptation.

Conclusion

The “Made in EU” initiative remains a draft and has not yet been adopted by the Council of the European Union. If approved, however, it has the potential to meaningfully deepen Türkiye-EU economic integration and may well revive long-stalled discussions on modernising the Customs Union. Realising that potential will require continued progress on decarbonisation, sustained alignment with EU standards, and active diplomatic engagement. Businesses operating across the Türkiye-EU corridor may wish to consider the potential implications of these developments as they take shape.