Turkish steel output grows despite trade barriers, trade minister says

By Kazim Kaan Ulu and Emir Yildirim

ISTANBUL (AA) - Türkiye's steel industry holds a leading position in Europe, but EU and US protectionist measures are hindering the global green transition, Turkish Trade Minister Omer Bolat said on Monday.

Bolat addressed 400 industry representatives from 80 countries at the Steel Networking Summit 2026 in Istanbul.

He said the Turkish steel industry drives the national economy and supports the auto, transport, energy, machinery and defense sectors, having produced 38.1 million tons of crude steel last year to rank seventh worldwide and first in Europe.

"Türkiye boasts $17.1 billion in steel exports and a network of over 200 countries within a global steel trade market projected to reach $615 billion by 2025," he said.

"That 42.3% of our steel exports are destined to the EU is a testament to our sector's international competitiveness," he added.

Bolat noted that Türkiye's steel production capacity relies on environmentally friendly, scrap-based electric arc furnace technology, adding that the country imported 18.8 million tons of steel scrap to produce 27.5 million tons of crude steel.

The minister criticized US and EU decisions on the steel sector, saying the measures affect exporting countries as well as investors and end consumers.

"These unilateral restrictions were implemented without the necessary consultation or negotiations, and they are inconsistent with international trade rules," he said.

"These barriers limit the efficient circulation of scrap-based, low-carbon steel, undermining the goals of green transition in the steel and industrial sectors," Bolat added.

"The annual trade volume between Türkiye and the EU is $233 billion, and over the past five years, this figure exceeded $1 trillion, representing a balanced and mutually beneficial bilateral trade volume," he said, noting that the bloc's protectionist measures are causing concern.

Despite deep economic integration, the EU's 50% reduction in steel quotas effective July 1 and the implementation of the Carbon Border Adjustment Mechanism burden exporters, according to the minister.

"In January-September, Türkiye's steel product exports covered by the Carbon Border Adjustment Mechanism to the EU fell 1.7%, while exports to non-EU countries rose 10% — our steel exports to the EU saw a 6.7% decline," Bolat said.

He said the Trade Ministry provides advisory support to counter the negative impact of trade barriers through Green Deal Compliance Projects so Turkish firms can meet new emissions standards without facing excessive costs.

"Under President Recep Tayyip Erdogan's leadership, the economy saw an annual real growth rate of 5.35% over the past 24 years, and the economy posted positive growth over the last 16 years except for 2009," he said.

"Since the second quarter of the COVID-19 pandemic, the growth rate rose over the past 24 quarters, or six years; the average growth over the past six years has been above 5%," Bolat added.

Bolat said Türkiye's gross domestic product surged from $238 billion to $1.7 trillion over the 24-year period and is projected to hit $1.8 trillion by year-end, with per capita income expected to surpass $20,000, up from $18,000 last year.

"Our total exports, including both goods and services, account for 25% of the national income, and coupled with imports, Türkiye's total foreign trade amounts to $860 billion, making up more than 50% of national income," he said.

He added that Türkiye has become a key player in global trade through its exports, imports and international investments.

Kazım Kaan Ulu