Updating the decades-long customs union with the European Union is not a choice but a necessity, a top economy official said Tuesday, renewing the call for the modernization of the pact.
Trade Minister Ömer Bolat, alongside Maros Sefcovic, the EU’s commissioner for Trade and Economic Security, addressed the Türkiye-EU High-Level Trade Dialogue meeting held in Ankara.
Bolat stressed that Türkiye has become a production hub near Europe with its qualified workforce, dynamic production capabilities and advanced financial system, successfully integrating into global supply chains.
“In terms of the security and resilience of global supply chains, Türkiye is a strategic partner for Europe. Our geostrategic position and production capabilities offer vital support in reducing the EU’s dependency on foreign sources for critical products,” he said.
“Despite all these advantages, the current structure of the Türkiye-EU Customs Union does not fully align with today’s trade dynamics, and both sides agree on this point,” he added.
“Updating the customs union within the framework of digitalization, trade in services, sustainable development and next-generation trade policies presents a key opportunity for advancing our relations,” the minister was quoted by Anadolu Agency (AA) as saying.
“The consensus we’ve reached with the European Commission and the technical progress made should not be disregarded by the council. Updating the customs union is not a choice but a necessity; it is a process in which both parties will benefit,” Bolat furthered.
“We cannot manage the trade of 2025 with rules established 30 years ago.”
The EU is Türkiye’s key trading partner and is the only non-EU country that has a customs union deal with the bloc. The agreement was struck in 1995.
Speaking at the news conference following the meeting, Bolat said the dialogue added strategic depth to Türkiye-EU economic relations and helped create a new, positive agenda.
He recalled that a meeting was held in June in Paris between delegations, including himself and Sefcovic, and that in December 2024, a meeting took place between President Recep Tayyip Erdoğan and European Commission President Ursula von der Leyen.
“In today’s meeting, we made significant progress on overcoming trade barriers, having electronically issued A.TR certificates accepted by the EU, cooperation with the EU on Türkiye’s TAREKS and inspection regulations, and deepening our cooperation in green and digital transformation,” he stated.
“The strengthening of our joint value chains and our potential to progress together in these areas will guide our future work,” he added.
Bolat also noted that the customs union has made a significant contribution to improving Türkiye’s industrial infrastructure and enhancing the competitiveness of Turkish products in global markets.
Earlier this year, in April, the duo also held the first Türkiye-EU High-Level Economic Dialogue in six years.
Visa liberalization
On the question of visa liberalization, Bolat stated that concrete steps are expected from both member states and EU institutions.
“Until full visa liberalization is granted for our citizens through agreements, we urgently request, at the very least, facilitated applications, long-term and multiple-entry visas for businesspeople, transporters, technical experts, drivers, academics, university students and NGO leaders, and for human resources and technical equipment to be strengthened in the diplomatic missions of member countries,” he noted.
The Turkish business community has been increasingly exasperated by the bureaucratic hurdles involved in securing Schengen visas, a system that was once considered routine but has now become an obstacle for many.
Lengthy processing times and a growing number of EU visa rejections in recent years turned into a row that has been straining relations between Ankara and the bloc.
“In addition, lifting transit passage quotas for our transporters in mutual trade has become a necessity for our shared economic interests,” he said.
Moreover, he suggested that substantial work is being done by EU institutions and member states on visa facilitation, saying: “They said that visa processes will be expanded, a new threshold system will be introduced, and a more streamlined process will be ensured. A concrete plan will be announced and implemented soon.”
“We see this as a significant step forward. However, our main expectation is the full implementation of visa liberalization for all Turkish citizens in all member states, as agreed in relevant accords, in the short term,” he also said.
Deepening trade ‘shared priority’
At the same time, he pointed out that during this turbulent period globally, Türkiye-EU cooperation has become even more critical, given that they are each other’s top trade and investment partners.
He underlined that with its infrastructure, technology, engineering, manufacturing capabilities and human resources, Türkiye is an essential partner to help Europe achieve its industrial, defense and innovation goals.
“Since the customs union came into effect on Jan. 1, 1996, our exports to the EU have increased tenfold, making Türkiye the EU’s fifth-largest trade partner. The EU remains Türkiye’s number one trade partner. Türkiye is a significant production and supply base for the EU,” he furthered.
“About 70% of investments coming to Türkiye are from European countries, and these foreign investments generate $70 billion (TL 2.79 trillion) in export revenues annually. With today’s meeting, we reaffirmed that deepening our bilateral trade and economic relations is a shared priority,” he concluded.
Sefcovic, for his part, also stated that it is encouraging that EU-Türkiye trade relations are getting stronger.
Emphasizing that the partnership has been ongoing for a long time, he said: “Bilateral trade between the EU and Türkiye is expected to reach 210 billion euros ($247.87 billion) this year. This shows the potential for deeper, more extensive cooperation,” he said.
“As a customs union partner and EU candidate country, Türkiye plays a key role in our shared economic future. The EU is Türkiye’s biggest trade and investment partner. We are determined to strengthen this relationship further.”