This study demonstrates that the circular economy paradigm is redefining the structural foundations of global trade. Regulatory instruments such as the European Union’s Green Deal and the Digital Product Passport have transformed the circular economy from a voluntary environmental preference into a strategic prerequisite for access to international markets.

The primary objective of the research is not to invalidate traditional internationalization theories, but rather to reveal how the circular economy enriches these frameworks through emerging conceptual dimensions such as eco-institutional distance and circular resource advantage. In this context, the study reconceptualizes internationalization processes by integrating sustainability-driven institutional and resource-based dynamics into established theoretical models.

The research is designed within a qualitative methodological framework and is based on a comprehensive literature review. Academic publications, reports issued by the European Union, the OECD, and the Ellen MacArthur Foundation, as well as national policy documents, were systematically analyzed. Based on these sources, a holistic conceptual framework was developed, allowing current trends and structural dynamics to be evaluated from an analytical perspective.

The findings indicate that the transition toward a circular economy creates a dual dynamic for firms. On the one hand, companies face significant barriers, including high compliance costs and increasingly complex regulatory standards. On the other hand, the transition offers opportunities to achieve long-term sustainable competitive advantage through enhanced resource efficiency, greater supply chain resilience, and the development of green brand value. In the Turkish context, strong dependence on the EU market and sectoral concentration in industries under intense transformation pressure—such as automotive, chemicals, and textiles—render circular economy alignment a critical condition for economic resilience.

However, success should not be confined to regulatory compliance alone. It requires an integrated ecosystem approach that places SMEs at the center and fosters synergy among industry, public policy, financial mechanisms, and academia, alongside a profound transformation in managerial and institutional mindsets. From this perspective, the study concludes that the future global trade order will increasingly favor economies that have internalized circularity. Turkey’s position within this emerging landscape will be shaped by the collective, decisive, and innovative actions undertaken today.