Bolat and EU Commission Member Responsible for Economy Maros Sefcovic spoke at the session titled "Shaping the Future of EU-Turkey Trade and Economic Relations" within the scope of the Turkey-EU Business Summit organized in cooperation with the Foreign Economic Relations Board (DEIK) and the European Business Summit (EBS) in Brussels.
Stating that he made his fifth visit to Brussels this year and met with the EU Commission Member Responsible for Economy Maros Sefcovic eight times, Bolat pointed out that there are very strong ties between Türkiye and the EU.
Reminding that the Customs Union has been implemented since the beginning of 1996, Bolat stated that within this framework, the restrictions and equivalent effective measures between the two parties were abolished and Türkiye adopted the common external customs tariff regime.
Explaining that Turkey has adapted to the EU's competition policy, state aid policy, trademark and patent regime and trade policies, Bolat said that Turkish legislation has been comprehensively harmonized with the EU legislation in these areas.
Bolat said, "The Customs Union has been extremely successful in the past 30 years. Our total annual trade increased 11 times, from approximately 21 billion dollars to 233 billion dollars last year. The Customs Union increased mutual investments between the two parties, enabled the mutual opening of markets in terms of industrial product exports, and brought about a very successful industrial integration." he said.
Pointing out that approximately 63 percent of Turkey's total foreign direct investment stock of 294 billion dollars comes from EU companies, Bolat noted that there is a very strong bond and integration between Türkiye and the businesses of EU member countries.
Bolat said that approximately 26 percent of the total Türkiye-EU trade is in the automotive sector and 62 billion dollars of automotive trade is made.
"75 percent of the automotive industry in Turkey consists of European companies." Bolat said, listing companies such as Renault, Peugeot, Fiat, Stellantis Group, MAN, Mercedes-Benz and Bosch.
Reminding that Türkiye has received 21 billion euros in automotive investment from EU companies, Bolat said, "These companies have Turkish partners and parts they procure from Turkey. However, this relationship works in two directions. Turkey produced approximately 1 million 450 thousand automobiles and other motor vehicles last year. 75 percent of this production is carried out by EU companies." he said.
Pointing out that Turkey's automotive market is at the level of 1.3 million vehicles per year, Bolat explained that 75 percent of this market, that is, 980 thousand vehicles, is met through imports.
"All this shows how strong interdependence there is between the two parties in terms of supply chains, markets and production." Bolat said, "Total trade between Türkiye and the EU has reached 900 billion euros in the last five years. In dollar terms, this means 1 trillion dollars." gave the information.
Minister Bolat said, "There is an Industrial Acceleration Law being discussed within the EU. 'Production in the EU' or 'Production with the EU' discussions are being held throughout Europe. We strongly express to our European partners and friends that common sense should prevail." he said.
Pointing out that the Turkey-EU Customs Union should guide the decisions regarding the future of trade, Bolat continued as follows: "We explain that it is in the interest of the EU industry, the EU economies, the Turkish industry and the Turkish economy to continue moving forward on this extremely critical road without any accidents. Because both parties will benefit from this. We respect the idea of the Industrial Acceleration Law. We consider this approach natural. We also have the same serious concerns about the huge amount of imports from third countries. We are in close cooperation with our friends in the EU on all these issues. "However, the solution should not be to exclude reliable partners or the Customs Union. The solution we strongly demand and expect from the member countries, the European Parliament, the EU Commission and the EU Council is to accept Türkiye as an equivalent partner in the 'Production with Europe', 'Production with the EU' project. This is in the strong interest of the Turkish economy and industry as well as the EU economies and the automotive industry."
Reminding that they will hold the High Level Trade Dialogue meeting for the third time in the last two years today, Bolat said, "We wanted to combine the High Level Trade Dialogue meeting with the Turkey-EU Business Summit program. Our aim is to bring together private sector representatives and public officials to ensure that they listen and understand each other on Turkey-EU relations. Thanks to the High Level Trade Dialogue, we managed to reduce the number of problems within the scope of the Customs Union from 29 to 14 as of last year. We will make additional progress in this regard." made his assessment.
Drawing attention to the visa issue for Turkish citizens, Bolat said, "Turkey is the only country among the candidate countries in the expansion and accession process that has not yet been granted visa liberalization to its citizens. All other candidate countries benefit from the visa liberalization regime." he said.
Bolat said that the gradual visa system has alleviated the visa difficulties to some extent, but it is not enough.
EU Commissioner Sefcovic also stated that they attach great importance to partnership with Türkiye at a time when global uncertainties are increasing.
Stating that despite geopolitical turmoil, security concerns and negative economic conditions, both sides maintain their commitment to open and rules-based trade, Sefcovic noted that the economic relations between Türkiye and the EU have developed strongly.
Sefcovic thanked the business world representatives for their contribution to increasing trade.
Pointing out that they will continue negotiations until late this evening to discuss bilateral trade relations between Türkiye and the EU, Sefcovic stated that Turkey is the only major economy with a Customs Union with the EU.
"The Customs Union ensures that European and Turkish companies are tightly linked through highly integrated supply chains in many sectors," Sefcovic said. he said.
Stating that they have mutual strategic interests in providing a stable and secure environment in the Eastern Mediterranean, Sefcovic stated that this is necessary to continue developing cooperative and mutually beneficial relations with Türkiye.
Stating that there is a great potential for further cooperation and that it is clear that there are many opportunities that have not yet been evaluated, Sefcovic said, "I am pleased that the contacts between Turkey and the EU in the field of trade are intensifying and progressing efficiently." he said.
Sefcovic said that the full implementation and correct implementation of the Customs Union must be ensured, including its implementation to all member countries, and that this is a fundamental necessity.
Noting that updating the Customs Union will provide very concrete and clear benefits for both parties, Sefcovic said, "I think it will help us accelerate the further growth of trade, investment flows and integration of supply chains." he said.
