ANKARA
The Ankara Chamber of Industry (ASO) has warned that the Free Trade Agreement (FTA) signed between the European Union (EU) and India is unlikely to cause an immediate and destructive loss of market share for Türkiye but rather a gradual increase in competitive pressure.
In a newly published research report, ASO analyzed the potential impact of the deal on the Turkish industry, highlighting both risks and opportunities.
According to the report, the EU currently imports goods worth $115 billion from Türkiye and $81.8 billion from India. The agreement could enable India to boost its export performance in certain sectors, potentially weakening Türkiye’s strong position as a supplier to the EU market. One of the most vulnerable areas identified is the electrical machinery and equipment sector, where India may gain ground under the new trade framework.
The report also emphasized the importance of the EU’s Carbon Border Adjustment Mechanism (CBAM).
The study noted that CBAM could actually provide Türkiye with a competitive edge, particularly in the steel industry. Türkiye’s reliance on electric arc furnace technology offers a significant carbon advantage compared to India’s coal-dependent production structure.
If Türkiye accelerates its green transition and maintains this advantage, the cost burden imposed on India by CBAM could offset, or even neutralize, the tariff benefits India secures through the FTA, the report said.
