In place for three decades, the agreement is increasingly “restrictive” rather than “supportive” of Türkiye’s economic interests, according to Istanbul Apparel Exporters’ Association (IHKIB) chairman Mustafa Paşahan.
The remarks were made at the “Transformation Journey of the Turkish Apparel Industry” conference, held on May 11, 2026, in Istanbul, which brought together global representatives from the UNFCCC, EURATEX, and the IAF alongside Türkiye’s Ministry of Trade.
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Paşahan emphasised that the current form of the Customs Union generates asymmetric outcomes for Türkiye due to the EU’s free trade agreements (FTAs) with third countries. He stated that Türkiye can secure a lasting competitive edge in the EU market only if the Customs Union is fully modernised.
Paşahan said: “We know that a lasting competitive advantage in the EU market can only be achieved through the full modernisation of the Customs Union. However, the Customs Union in its current form has more of a restrictive effect on our cooperation than a supportive one. The free trade agreements (FTAs) the EU has concluded with third countries generate asymmetric outcomes for Türkiye. For this reason, a formula must be found to include Türkiye in the EU’s ongoing FTA negotiation processes, and the Customs Union must be updated in line with the shifting economic landscape.”
“On another front, the Pan-Euro-Mediterranean Rules of Origin Cumulation has
facilitated North African countries’ access to the EU market — a development that diminishes the advantages Türkiye derives from the Customs Union and intensifies competitive pressure, particularly in the textile and readyto-wear sectors. It is therefore of great importance that developments pertaining to rules of origin be taken into account during the process of updating the Customs Union. We are also closely monitoring developments related to the ‘Made in Europe’ initiative, and we expect a framework to be established that does not exclude the value chains in which Türkiye is integrated.”
The Turkish Exporters Assembly (TIM) chairman, Mustafa Gültepe, echoed these sentiments, expressing concerns over the potential for products from India and South America to enter Türkiye duty-free through the EU.
Gültepe “strongly objected” to the FTAs turning the 30-year-old Customs Unions Agreement into “shackles” for the region, calling for Türkiye to be recognised as a strategic partner rather than a neighbour whose cooperation is sought only in challenging times.
The conference also highlighted the nation’s role in the European apparel ecosystem, with the country being the EU’s largest apparel supplier in its closest geography.
UN Climate Change (UNFCCC) business engagement lead Lindita Xhaferi-Salihu noted Türkiye’s strategic role in accelerating climate action through public-private partnerships, as the country prepares to host COP31 in Antalya.
“We are now in a decisive phase of implementation. As we look ahead to COP31 in Antalya, Türkiye, the Global Climate Action Agenda underscores what the real economy is already demonstrating: solutions exist, and proven approaches are being deployed. The central challenge for the fashion industry is no longer to define what needs to be done, but to accelerate the pace and scale of implementation,” Lindita Xhaferi-Salihu said.
Türkiye Ministry of Trade, International Agreements and European Union director general Hüsnü Dilemre, pointed out that the green transition presents a strategic opportunity for the country to align with EU standards, reinforcing its position as Europe’s most sustainable and competitive manufacturing hub.
EURATEX president, Mario Jorge Machado, noted how EU regulatory frameworks should be a “barrier” but instead a “market access filter,” and advised that Turkish companies that align early will compete on terms that others cannot match. Stefano Festa Marzotto, President of the IAF, contended “industry transformation will not happen through individual actors working in isolation” but requires a new approach wherein the “whole industry works together in the same direction.”
