ISTANBUL

European and Turkish executives, diplomats, and senior officials convened in Istanbul on Friday for the European-Turkish Trade and Investment Council’s (ETTIC) annual New Year’s reception, using the gathering to renew calls for closer economic cooperation between Türkiye and the EU amid shifting global trade and geopolitical dynamics.

The council stated that the event brought together business leaders with major investments in Türkiye alongside government representatives and ambassadors, underscoring the private sector’s growing push to anchor EU-Türkiye relations in trade and investment at a time of supply-chain realignment and regional uncertainty.

Turkish Deputy Foreign Minister and Director for EU Affairs Ambassador Mehmet Kemal Bozay told participants that strengthening ties with the bloc remains a strategic priority for Ankara, stressing the need for pragmatic cooperation.

“Türkiye and the EU are deeply interconnected economically,” Bozay said, adding that relations must adapt to changing global realities.

He held talks with chamber presidents and executives on economic prospects for the year ahead and ways to expand bilateral trade and investment.

Cenk Ulu, general manager of PwC Türkiye, said deeper commercial engagement would benefit both sides, describing Türkiye as a strategically located economy with the capacity to support Europe’s competitiveness during a period of economic transition.

ETTIC President Markus C. Slevogt said the council would continue working to strengthen dialogue between European and Turkish business communities, acknowledging existing challenges while expressing confidence in long-term cooperation.

“Stronger economic ties are a win-win for both sides,” he said, calling the EU and Türkiye strategically aligned partners.

Deeper engagement and Customs Union overhaul

Belgium’s Ambassador to Türkiye, Hendrik Van de Velde, highlighted Ankara’s role in Europe’s economic and strategic landscape, saying Brussels and EU member states should intensify engagement with Türkiye.

He noted Belgium’s interest in exploring new avenues to deepen bilateral relations.

A key focus of the reception was the need for effective stakeholder engagement to advance economic ties, a theme introduced by Brussels-based strategic communication and policy adviser Ipek Tekdemir, who pointed to Istanbul’s position as a regional hub for business, diplomacy, and strategic communication.

Participants also returned to the long-standing issue of modernizing the EU-Türkiye Customs Union.

In force since 1996, the agreement allows tariff-free trade in industrial goods and processed agricultural products but excludes services and primary agriculture.

Business representatives said the framework no longer reflects current global trade conditions and reiterated calls for an update, arguing that modernization would expand market access and reduce barriers for both sides.

Despite broad backing from the business community, negotiations on updating the Customs Union have stalled.

Attendees said reviving the process is essential to reinvigorating EU-Türkiye economic relations and adapting them to today’s global economy.