Israel has announced that it will halt trade with Turkey, following in the footsteps of other countries who have imposed sanctions on the country. The decision was made after a series of political developments in Turkey, including recent elections, and has had immediate effects on the ground.
According to reports from Globes and Bloomberg news agency, goods bound for Israeli ports are not being loaded onto ships, and ships already in Turkish ports are unable to unload their cargo. The trade relationship between Turkey and Israel has been declining over the past year, with imports from Turkey outpacing exports.
The import mix includes metals, machinery, plastics, and other products, while the export mix includes chemical products, metals, and machinery. Turkey is a significant source of imports for Israel, particularly in sectors like cement, plastics, and textiles. This decision to halt trade with Israel is seen as a response to political developments in Turkey.
Foreign Minister Israel Katz criticized Turkish President Recep Tayyip Erdogan for the trade restrictions and called for immediate discussions to find alternative trade options. Business associations in Israel expressed disappointment over the decision but emphasized the need for economic relations to remain separate from political issues. Manufacturers in Israel have been warned about the potential impact on their industries and have been advised to focus on local production to reduce dependence on Turkish imports.
In an effort to maintain trade flows amidst these restrictions, shipments are being sent to ports in Slovenia before reaching Israel. While this detour may increase shipping costs and complexity, it is seen as a temporary solution until a more permanent solution can be found. The political context in Turkey suggests that there may be a shift in trade relations with Israel as Erdogan’s statements indicate that he wants closer ties with Russia instead of maintaining close ties with Western countries like Israel.
Israel is now exploring options to navigate this changing landscape and ensure continued economic stability by seeking out new markets for its exports while also diversifying its imports from different countries.
In conclusion, Turkey’s decision to halt trade with Israel without making an official announcement has had significant consequences on both sides of the border. While businesses continue to look for alternative solutions to maintain their operations amidst these restrictions, it remains uncertain whether this temporary solution will be sufficient or if further steps need to be taken by both governments to resolve their differences permanently.
