Eskisehir ın Europe

Does the Customs Union agreement create challenges for local exporting companies?

Tanju Güler

Çamsan Import and Export Manager Kaan Sedef stated that the current Customs Union framework between Türkiye and the European Union is no longer fully compatible with today’s global trade conditions and needs urgent modernization. He emphasized that exporters are increasingly under pressure due to technical requirements, customs procedures, and logistics-related delays.

The Customs Union agreement, which entered into force in 1996, has long shaped Türkiye–EU trade relations. However, changes in global supply chains, stricter environmental regulations, and the rise of digital trade have once again brought discussions about updating the system to the agenda.

Rising compliance costs in EU trade

Sedef noted that one of the biggest challenges for exporters is compliance with European technical standards. Requirements such as CE marking, environmental regulations, and quality certifications significantly increase production costs. He said: “To access the EU market, production processes must fully comply with strict standards. Laboratory tests, certification renewals, and adjustments in production lines create additional financial burdens.” He also added that sustainability requirements are becoming increasingly strict, forcing companies to continuously invest in compliance.

Impact of customs delays on delivery performance

Another major issue is delays at customs checkpoints. According to Sedef, congestion at border crossings and detailed document inspections can disrupt delivery schedules and create uncertainty in supply chains. He stated: “European customers expect fast and reliable delivery. Even a small delay can negatively affect customer relationships and trust.”

He also stressed that this situation not only affects logistics performance but also reduces competitiveness.

Competitive position of Türkiye-based firms

Sedef explained that Türkiye-based manufacturers have both advantages and disadvantages in the European market. Geographic proximity provides faster transportation compared to more distant competitors, offering a significant logistical advantage. However, he also pointed out that bureaucratic procedures and additional documentation requirements sometimes reduce this advantage. “Turkish industry has strong production capacity. However, administrative procedures and transport inefficiencies can limit competitiveness compared to European-based firms and force our goods to wait at customs,” he said.

Import costs and exchange rate pressure

The interview also highlighted issues related to imported raw materials. Additional taxes, customs duties, and inspection processes increase production costs. Sedef stated that exchange rate fluctuations further complicate financial planning, making long-term production forecasts more risky and difficult for exporters.

Need for structural reform

Sedef said: “Digitalization, sustainability standards, and global logistics systems have changed significantly. Turkish exporters need a faster, more transparent, and more flexible trade framework to remain competitive in the European market.” The discussion reflects growing concerns among Turkish industrial actors about the future of Türkiye–EU trade relations and the need for structural reforms to maintain competitiveness.

Sedef underlined that the most urgent issue is the modernization of the Customs Union itself. He argued that the current system reflects trade conditions of the 1990s and is no longer aligned with today’s economic realities.