Trade between Turkey, Israel deteriorates due to political tensions
Date
5/28/2024 3:01:53 AM
(MENAFN) A UK-based news agency reported that representatives from various Turkish companies have acknowledged that political tensions between Turkey and Israel significantly impact their trade volume. Despite enduring numerous diplomatic challenges over the past decades, trade between the two countries has remained robust, reaching billions of dollars annually.
The agency noted Israeli concerns that this trade might not survive the latest dispute over the Gaza conflict.
This month, Turkey halted all bilateral trade with Israel until the war concludes and aid can flow freely to Gaza. Israel criticized Turkey's move, stating it violated World Trade Organization rules.
Israeli importers scrambled to find alternative sources for goods such as food, cement, and cars. Economists believe Turkey's decision might cause a short-term deficit but is unlikely to harm Israel's $500 billion economy significantly.
According to Israeli government data, bilateral trade decreased by approximately 23 percent to $6.2 billion in 2023, with Israeli imports from Turkey accounting for about three-quarters of this figure.
Following Ankara's suspension, a UK news agency cited representatives from several Turkish export companies who mentioned exploring ways to send goods to Israel via a third country. However, exporters and importers from both nations have since reported no successful solutions.
Trade officials indicated that Greece, Italy, and other countries are prepared to replace Turkey's role, with deals nearing completion. The primary challenge, however, will be finding alternative markets for over $1.5 billion in Israeli exports, mainly consisting of fuel, chemicals, and semiconductors.
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