At the workshop convened by the Global Relations Forum in Istanbul on 10 February 2026, participants examined the implications for Turkey–EU economic integration of the EU’s accelerating trade agreements with third countries, notably Mercosur and India, as well as its “Made in EU” approach prioritizing domestic production and the policies introduced under the Industrial Accelerator Act. The discussions also addressed asymmetries stemming from the Customs Union and considered possible measures within the framework of association law and the principle of reciprocity. The report prepared following the workshop sets out policy recommendations calling for the modernization of the Customs Union without preconditions and for Türkiye–EU relations to be reconsidered with a strategic vision in the context of current global developments and the evolving geopolitical environment.
Istanbul, February 10, 2026 — At a time when the global system is being reshaped by geopolitical fractures, and when policies on investment, trade, industry, and connectivity are increasingly evolving into strategic tools and political instruments, recent developments in the European Union’s external economic agenda have drawn particular attention. These include the Free Trade Agreement signed with Mercosur countries, the ongoing FTA negotiations with India, a new generation of trade and investment agreements gaining momentum with third countries, as well as the EU’s “Made in EU” approach prioritizing domestic production and the Industrial Accelerator Act.
Given Turkey’s high level of economic integration with the EU on the basis of the Customs Union, as well as existing structural asymmetries, these developments call for a comprehensive assessment of their implications for the Turkish economy, industrial integration, international competitiveness, and trade balances.
In this context, the Global Relations Forum (GRF) convened a workshop at the GRF Office titled “New Pathways in Turkey–EU Relations in Light of the European Union’s Recent Agreements on Investment, Trade, and the Economy.” Held under the coordination of GRF’s EU Working Group, the meeting brought together GRF members representing the business community and private sector, academics specializing in EU studies, civil society representatives, and experts from the automotive, textile, manufacturing, and services sectors. The workshop provided a comprehensive platform to examine the current state of Turkey–EU economic integration, emerging areas of risk in light of recent developments, and potential policy options. The findings of GRF’s previous report, “Revitalising Turkey–European Union Relations on the 20th Anniversary of Accession Negotiations: A New Roadmap,” remain valid in the current context.
The Current State of Turkey–EU Relations
The discussions during the workshop underscored that the present trajectory of Turkey–EU relations is not sustainable. The de facto standstill in accession negotiations, the lack of progress in modernizing the Customs Union, and the limited scope of high-level political dialogue are all weakening the institutional depth of economic integration and eroding Turkey’s EU perspective.
Participants emphasized the need to strengthen mutual political will on strategically significant issues, noting that the current framework, unable to deliver tangible outcomes, is gradually undermining the spirit of partnership. At the same time, as highlighted in previous GRF reports, even political obstacles such as Cyprus are considered amenable to resolution through diplomatic channels.
Implications of the EU’s New Trade and Industrial Policies for Turkey
The EU’s new generation of trade and investment agreements with third countries, together with regulatory initiatives designed to strengthen its industrial policy and prioritize domestic production, featured prominently among the workshop’s core discussions. In particular, the asymmetry arising from Turkey’s obligation under the Customs Union to align with the EU’s Common Commercial Policy, contrasted with the reluctance of third countries to conclude parallel agreements with Turkey, was identified as a structural vulnerability.
Representatives from the automotive, textile, and services sectors illustrated through concrete examples the potential implications for value chains, investment decisions, and competitiveness. They underscored the importance of avoiding practices that could weaken Turkey’s effective access to the EU market and undermine its level of industrial integration.
Association Acquis and the Institutional Framework
The workshop underscored that Turkey–EU relations are grounded not merely in political preferences, but in a binding body of association law established through the 1963 Ankara Agreement, the 1970 Additional Protocol, and the Customs Union. In this context, participants emphasized that due regard for the principles of reciprocity, acquired rights, and pacta sunt servanda constitutes a fundamental requirement for ensuring predictability and mutual trust in the relationship.
It was further noted that, in implementing its trade and industrial policy instruments, the EU must take into account the existing association acquis and institutional framework, which are essential to the sustainability of economic integration.
Modernization of the Customs Union: A Strategic Imperative
The workshop concluded that the modernization of the Customs Union has evolved beyond a purely technical matter and must now be addressed within the broader context of economic security, value chains, and strategic positioning.
Participants emphasized that the modernization process should be launched without preconditions and expanded to cover areas such as services, digital trade, the green transition, and supply chain resilience. It was underscored that Turkey is the EU’s fifth largest trading partner, and that bilateral trade and investment generate income, employment, and strategic depth for both sides. The current stagnation, by contrast, was seen as imposing growing economic, commercial, industrial, and ultimately geopolitical costs on both parties.
Workshop Conclusions and Policy Recommendations
The discussion paper prepared following the workshop deliberations analyzes the structural risks confronting Turkey–EU economic integration in the current global context and puts forward policy recommendations grounded in the legal framework and guided by the principle of mutual trust.
The document argues that Turkey–EU relations should be reassessed through the lenses of economic security, industrial integration, and strategic positioning, and that placing the modernization of the Customs Union on the agenda without further delay serves the interests of both sides. It also highlights that strengthening Turkey’s reform process would enhance its negotiating capacity at the international level.
As emphasized in the workshop’s final report, revitalizing Turkey–EU relations through an approach rooted in mutual respect and trust, faithful to the established legal framework, and guided by a strategic vision is not only a rational choice, but a necessity given the current global disruptions.
📄Workshop Outcome Document:
https://www.gif.org.tr/files/new-approaches-in-turkey-european-union-eu-relations-in-light-of-the-eus-recent-agreements-on-investment-trade-and-the-economy.pdf
📘GRF Special Report – “Revitalising Turkey–European Union Relations on the 20th Anniversary of Accession Negotiations: A New Roadmap”
https://www.gif.org.tr/files/gif-ab-turkiye-ozel-raporu.pdf