The debates surrounding the Industrial Acceleration Act and the “Made in EU” label currently on the EU agenda point to a process that could have strategic implications for Turkey’s machinery industry. The Machinery Exporters’ Association emphasizes that Turkey’s deep integration with the EU should be reflected in this definition. Export data for the first 11 months of 2025 show that the sector has maintained its resilience in value terms despite mounting cost pressures.

Referring to discussions around the Industrial Acceleration Act, which aims to raise the share of equipment produced in Europe to as much as 70% in certain sectors, Kutlu Karavelioğlu, President of Turkey's Machinery Exporters’ Association (MAİB), said the issue should be closely monitored from Turkey’s perspective, stating: “With the awareness that if one pillar of competitiveness is protectionism, the other is cost control, the EU should include Turkey in the ‘Made in EU’ definition as a strategic partner and a Customs Union associate.”

According to consolidated data released by MAİB, Turkey’s total machinery exports, including free zones, rose by 0.8% year-on-year to USD 26 billion in the January–November 2025 period. Despite a 6.9% decline in export volumes, the average export price per kilogram holding steady at USD 8.1 supported growth in value terms.

In November, exports of food and industrial machinery stood out with a monthly increase of 26.7%, while gains in the German and US markets also drew attention. Conversely, declining capacity utilization rates and the inability to fully pass rising costs onto prices pointed to a weakening of the sector’s pricing power.

Thanks to the industrial integration it has built over many years with the EU value chain, European capital-backed production facilities, and mutual supply relationships, Turkey plays a critical role particularly in machinery and equipment. This structure, developed within the framework of the Customs Union, suggests that excluding Turkey from the “Made in EU” definition could create additional costs for both European industry and supply security.