OSD - Automotive Manufacturers Association of Turkiye

As the respresenter of automotive OEMs, Automotive Manufacturers Association of Türkiye (OSD) recognizes that the Industrial Accelerator Act (IAA) is set to play a critical role in shaping the automotive industries of the European Union and its partner countries in the coming years. However, the current text is drafted in a complex and open-to-interpretation manner.

As its well known, Türkiye and the European Union have maintained a Customs Union relationship since 1996. According to the Customs Union Decision No. 1/95, there is free movement of goods principle for industrial products. The Customs Union has formed the backbone of the current economic relations between Türkiye and the EU, facilitating mutual market access and contributing significantly to bilateral volumes.

The ambition of the EU to use Made in Europe criteria in public procurement legislation is something that would lead to a divergence from WTO understanding of equal treatment among countries. The main principle in this regard is non-discrimination. According to WTO rules, Parties to the Agreement on Government Procurement (GPA) may not discriminate among goods, services and suppliers of other Parties.

Türkiye and the European Union have maintained a Customs Union relationship since 1996. According to the Customs Union Decision No. 1/95, there is free movement of goods principle for industrial products. The Customs Union (CU) has formed the backbone of the current economic relations between Türkiye and the EU, facilitating mutual market access and contributing significantly to bilateral volumes.