The Turkish Daily Sabah newspaper said that Israel is facing major trade disruptions following Turkey’s decision to halt all forms of bilateral trade in response to the war waged by the occupation army on the Gaza Strip.
The newspaper reported that Israeli companies are trying hard to find alternatives after the cessation of trade with Türkiye.
Ankara’s unprecedented decision represents the first case in which one of Israel’s main trading partners suspends exports and imports due to Israeli violations – according to the Turkish Daily Sabah – which greatly affects Israeli importers of various goods, from cement to consumer products.
Economic impact and search for alternatives
The Turkish government announced its decision to suspend trade earlier this month, with the Turkish government citing the “worsening humanitarian tragedy” in Gaza as the main reason.
This measure has prompted Israeli companies to urgently search for alternative suppliers for the vital imports that Israel obtains from Turkey, as the newspaper reported.
The newspaper quoted the chief economist at the Israeli Ministry of Finance, Shmuel Abramson, as saying: “While some alternatives may lead to higher costs, we do not expect significant or continuing disruption to the Israeli economy due to Turkey’s actions.”
The newspaper said that major Israeli car importers and consumer goods companies are exploring urgent alternatives to mitigate the impact on supply chains.
Union Motors and Coolmobile, importers of Toyota and Hyundai respectively, reported breakdowns, especially with vehicles parked at Turkish ports.
Israeli failure
Bilateral trade between Israel and Turkey has already fallen by approximately 23% to $6.2 billion in 2023, with Israeli imports accounting for about 3-quarters of this total.
In the wake of Ankara’s decision, efforts to redirect Turkish goods through other countries have not achieved any success so far, according to the newspaper.
According to trade officials, countries such as Greece and Italy may help fill the void left by Turkey, although reallocating over $1.5 billion in supposed Israeli exports remains a challenge.
The decision to suspend trade comes amid strong accusations from Turkish President Recep Tayyip Erdogan, who described Israel as a “terrorist state” and accused it of committing war crimes in Gaza.
Israeli reactions
In response to Turkey’s decision to halt trade, Israeli Finance Minister Bezalel Smotrich announced – earlier – plans to cancel the free trade agreement with Turkey, and this measure is scheduled to be presented to the Council of Ministers for approval soon.
