The European Turkish Trade and Investment Council (ETTIC) is taking bold steps to reshape and strengthen economic ties between the European Union and Turkey.
In a discussion hosted in Brussels by Gary Cartwright of EU Today, key ETTIC leaders outlined their vision for enhancing trade relations and modernising the long-standing EU-Turkey Customs Union agreement.
The event featured insightful contributions from Dr. Markus C. Slevogt, Chairman of ETTIC; Livio Manzini, Honorary Chairman of the Italian Chamber of Commerce in Turkey; and Tuğrul Şeremet, President of the Belgian-Luxembourg Chamber of Commerce in Turkey.
Bridging Asymmetry in EU-Turkey Business Relations
ETTIC Chairman Dr. Markus C. Slevogt emphasised the organisation’s origins and its primary mission to address the “asymmetry of information” between European and Turkish businesses. Reflecting on ETTIC’s creation, Dr. Slevogt explained:
“We realised that both the Turkish side and the European side often struggled to understand each other perfectly on the business front. Our goal is to balance this asymmetry by consolidating the interests of bilateral chambers and ensuring they are represented effectively at the heart of the European Union.”
Dr. Slevogt also highlighted the economic importance of this relationship, citing over €200 billion in European investments in Turkey over the past 20 years and an annual trade volume exceeding €200 billion. He described the need to modernise the Customs Union as critical, noting that the agreement, which dates back to 1996, is no longer fit for purpose in today’s rapidly evolving economic environment.
“The 1996 version of the Customs Union does not provide adequate provisions for modern business activities like services, e-commerce, and public procurement. Modernising this framework is essential to foster further economic growth on both sides.”
Modernisation of the Customs Union: Challenges and Opportunities
Expanding on this theme, Livio Manzini, Honorary Chairman of the Italian Chamber of Commerce in Turkey, outlined the strategic importance of updating the Customs Union agreement.
“The trade agreement between the EU and Turkey was signed nearly 30 years ago, at a time when there was no internet or e-commerce. It’s now inadequate for the size and scope of modern commerce. The EU and Turkey need to align the Customs Union with today’s realities.”
Manzini stressed that the political stagnation surrounding Turkey’s EU candidacy should not hinder progress on trade.
“This commercial opportunity should not be held hostage to politics. Modernising the Customs Union is a win-win scenario, with impact assessments showing it could add points to GDP for both the EU and Turkey.”
According to Manzini, ETTIC aims to act as a catalyst for this change by decoupling the political track from the economic one. He pointed out that while the European Parliament has already endorsed the need to modernise the Customs Union, the Council of the EU must still give its mandate to begin negotiations.
Mutual Benefits for Both Regions
Tuğrul Şeremet, President of the Belgian-Luxembourg Chamber of Commerce in Turkey, underscored ETTIC’s role in aligning the interests of stakeholders on both sides. He highlighted the organisation’s unique position to represent the mutual benefits of closer trade ties.
“There is sometimes confusion that ETTIC represents one side over the other. That’s not true. We represent both European and Turkish businesses equally, and the benefits of modernising the Customs Union will be shared by all.”
Şeremet also discussed the potential for Turkey to serve as a key hub for European supply chains and trade expansion into Africa.
“Nearshoring and friend-shoring are increasingly important concepts. Turkey, with its strong infrastructure and manufacturing base, is perfectly positioned to strengthen supply chains closer to Europe. Moreover, Turkey can act as a gateway for European companies to access the African market, which is widely considered the next economic frontier.”
The Path Ahead
ETTIC’s leadership is optimistic about the future, despite the challenges of navigating complex political and economic landscapes. By consolidating the interests of bilateral chambers and advocating for modernisation, ETTIC aims to foster a stronger and more dynamic EU-Turkey economic relationship.
“Good trading makes good friends,” said Gary Cartwright, concluding the discussion.
As both regions continue to grapple with global economic uncertainties, ETTIC’s proactive efforts to modernise the Customs Union and strengthen ties could prove pivotal in unlocking new opportunities for growth and cooperation.
This article highlights ETTIC’s goals and strategies as shared by its leadership in Brussels. For more insights, watch the full discussion on EU Today’s platform.
