Turkey’s inclusion in the European Union’s planned Made in EU industrial policy framework is expected to strengthen the country’s automotive and steel sectors, reflecting the deep integration between Turkish and European manufacturing supply chains, according to reports.
The initiative is linked to the Industrial Accelerator Act (IAA), a legislative proposal adopted by the European Commission on 4 March 2026 as a key component of the EU’s Clean Industrial Deal. The IAA aims to raise the manufacturing sector’s share of EU GDP to 20pct by 2035 by stimulating demand for Made in EU and low-carbon products through public procurement and industrial support programmes.
Under the proposed rules, products from countries with a Customs Union or Free Trade Agreement with the EU, including Turkey, will be treated as having European origin in public procurement tenders. This effectively allows Turkish manufacturers to participate in EU industrial projects under the Made in EU label.
The regulation will initially focus on sectors such as steel, cement, aluminium, automobiles and net-zero technologies, including solar, wind and batteries. For example, public procurement rules may require at least 25pct low-carbon steel in certain projects and 70pct European-origin non-battery components in electric vehicles.
The IAA also aims to accelerate industrial investment by introducing a single digital permitting system with a maximum 18-month approval timeline for strategic projects. In addition, the framework introduces new conditions for foreign direct investment exceeding USD 116 mln in strategic sectors where a single non-EU country controls more than 40pct of global production capacity.
Industry analysts say Turkey’s inclusion in the framework could reinforce its role as a key supplier to Europe’s automotive and steel value chains, particularly as the EU increases demand for low-carbon industrial materials.
