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On 4 March 2026, the European Commission published the draft Industrial Accelerator Act ("IAA"), a legislative proposal to strengthen European Union ("EU") manufacturing in strategic sectors including steel, cement, aluminum and automotive. The Commission's stated goal is to raise manufacturing's share of EU gross domestic product from 14.3% to 20% by 2035.
The IAA does not expressly mention Türkiye, but under Articles 8 and 9 of the proposal, content originating in countries with a customs union or free trade area with the EU is treated as equivalent to EU-origin. Accordingly, Turkish goods and companies will qualify as "Made in EU" for the purpose of certain public support schemes. Direct access to public procurement tenders, however, is still out of reach. As stated by a Commission spokesperson, Turkish firms would not currently be able to directly participate in EU public tenders as contracting parties.1
The proposal's foreign direct investment chapter also introduces a review framework for large foreign investments in strategic sectors such as batteries, electric vehicles, solar PV and critical raw materials. Investments above €100 million in these sectors where more than 40% of global manufacturing capacity is held by the third country of the investor, and would be subject to prior notification and approval conditions designed to ensure value creation in the EU, including possible minority ownership structures, technology transfer and local employment requirements.
The IAA remains a legislative proposal and will now enter the ordinary legislative procedure in the EU. The negotiations are expected to take several months, and the final provisions may therefore differ from those currently proposed.
Footnote
1. https://www.trtworld.com/article/7efdfb1bc22f
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