EU and Turkey Agree to Work Toward Updating Customs Union

On February 6, 2026, European Commissioner for Enlargement Marta Kos and Turkish Foreign Minister Hakan Fidan met in Ankara to reaffirm commitment to work toward modernizing the EU-Turkey Customs Union, a nearly three-decade-old trade framework that underpins economic ties between the European Union and Turkey. The officials highlighted mutual interest in boosting competitiveness, economic resilience, and stronger cooperation across the region.

The existing Customs Union, in force since 1995, currently allows most industrial goods to circulate tariff-free between Turkey and the EU but does not cover services, public procurement, or agricultural trade - gaps that Ankara says put its exporters at a disadvantage and limit integration into broader European supply chains. Turkish business leaders and experts have been calling for an overhaul of the agreement to include these sectors alongside digital and sustainable trade elements.

The modernization talks also come amid increasing pressure to align trade policies with sustainability and climate goals. Experts note that future customs union negotiations could provide an opportunity for Turkey to adopt cleaner production standards and regulatory frameworks that are more compatible with the EU’s climate and carbon pricing regimes, including the Carbon Border Adjustment Mechanism (CBAM) and broader EU sustainability rules.

Although the two sides committed to continued engagement and welcomed the gradual resumption of European Investment Bank (EIB) activities in Turkey, concrete negotiation directives and timelines have yet to be formalized. Analysts say that deeper institutional cooperation - especially on environmental standards, carbon pricing, and circular economy policies - could play a crucial role in shaping the updated trade framework over the coming year.

EU-Turkey customs modernisation would materially reshape trade flows for CBAM-exposed sectors like steel, cement, aluminium and fertiliser, and the alignment work happens well before any formal treaty lands. Our supply-chain-and-operations and market-intelligence teams help clients evaluate what customs and trade updates mean for embedded-emissions disclosure and sourcing strategy.