Istanbul (Special to Informed Comment; Feature) – On Thursday, Turkey announced the suspension of all trade with Israel, citing the “worsening humanitarian tragedy” in the Gaza Strip as the reason.
The Turkish Ministry of Trade said: “Export and import transactions related to Israel have been suspended for all products. Turkey will implement these new measures strictly and decisively until the Israeli Government allows an uninterrupted and sufficient flow of humanitarian aid to Gaza.”
This move follows a previous trade restriction announced last month, during which Turkey restricted exports in 54 categories, including iron and steel products, jet fuel, construction equipment, machinery, cement, granite, chemicals, pesticides, and bricks.
In 2023, trade between Turkey and Israel amounted to $6.8 billion, with 76% representing Turkish exports to Israel. According to the Turkish Statistical Institute (TÜİK), Israel ranked 13th on Turkey’s list of export destinations in 2023, with $5.4 billion in exports.
Turkish exports played a crucial role in Israel’s economy. Before the embargo, Turkey had been Israel’s largest steel and cement exporter. Azerbaijani oil and even barbed wire were shipped to Israel through Turkish ports. Additionally, Zorlu Holding, a Turkish company, produced 7 percent of Israel’s annual electricity.
A Move to Regain Domestic Support?
During the campaign for the elections held on March 31, Erdoğan’s governing Justice and Development Party (AKP) faced criticism for maintaining trade relations with Israel despite the ongoing conflict in Gaza.
TRT World Video: “Türkiye halts trade with Israel until Gaza ceasefire”
Meanwhile, pro-government voices were claiming that the shipments to Israel were actually destined for Palestine. In December 2023, Trade Minister Ömer Bolat stated: “Goods arriving in Israel are destined for Palestine. [On the shipments], the destination must be written as Israel. Unfortunately, trade with Palestine must necessarily be conducted through Israel.”
AKP’s former ally, the hardline Islamist New Welfare Party (YRP), repeatedly criticized the government’s Gaza policy, using the slogan “Trade with Israel is a betrayal to Palestine.”
Before the local elections, Erdoğan criticized YRP by accusing them of harming AKP by dividing their votes. In response, YRP leader Fatih Erbakan said, “We are not making you lose; continuing trade with Israel is what is causing you to lose.”
While Turkey’s economic problems, such as decreasing pensions and salaries amidst soaring inflation, were the main factors behind AKP’s electoral loss, Turkey’s ongoing trade with Israel also played a role among conservative voters. This was even acknowledged by Erdoğan himself during a party meeting discussing the election results, as reported by party insiders.
On April 7, a week after the elections, police violently dispersed demonstrators on Istanbul’s Istiklal Street who were protesting trade with Israel. Despite the peaceful nature of the pro-Palestine protests, police detained 43 people.
Economic Impact
Israeli-Turkish relations under Erdoğan have been characterized by significant fluctuations and tensions. In the early 2000s, relations between Israel and Turkey appeared to be warming until the Gaza flotilla incident in 2010.
Despite strained diplomatic relations since 2010, trade between Israel and Turkey has flourished. In 2022, the two countries restored diplomatic relations, but their relationship has been deteriorating again since October 7.
Turkish investigative journalist Metin Cihan has been highlighting Turkish shipments to Israel since the beginning of the war. After the Ministry of Trade announced the trade suspension, Cihan claimed that he identified ships in Turkish ports that reported their destination port as Israel.
And, on May 5, Good Party (IYI) MP Turhan Çömez shared port records from his X account, revealing that Turkon Istanbul, a cargo vessel, departed from Iskenderun port and arrived in Haifa two days after the trade suspension with Israel.
According to the Israeli financial newspaper Globes, Azerbaijani oil was still being loaded onto tankers bound for Israel at the Turkish port of Ceyhan. Azerbaijani oil is transported via the Baku-Tbilisi-Ceyhan (BTC) pipeline, and from Ceyhan, it is transported to Haifa.
Moreover, Reuters reported that Turkish exporters are exploring alternatives to resume trade with Israel by considering routes through third countries such as Egypt, Jordan, or Lebanon. Four owners of export companies said that Turkey’s decision to suspend trade with Israel caught them off guard.
Israeli Foreign Minister Israel Katz criticized Turkish President Recep Tayyip Erdoğan’s decision to halt trade with Israel, saying “This is how a dictator behaves, disregarding the interests of the Turkish people and businessmen, and ignoring international trade agreements.”
Katz also added that he instructed the Israeli Foreign Ministry Director General Yaakov Blitshtein to “immediately engage with all relevant parties in the government to create alternatives for trade with Turkey, focusing on local production and imports from other countries.”
In conclusion, Turkey’s decision to suspend trade with Israel amid the ongoing humanitarian crisis in Gaza may be seen as a genuine expression of solidarity with Palestine. However, given the timing following an election loss and amidst protests, it’s plausible that this drastic policy change could also be interpreted as an attempt by Erdoğan to regain support from conservative voters.
Moreover, Turkey has stated that the trade suspension will continue until Israel permits an uninterrupted and sufficient flow of humanitarian aid. Whether Israel will reconsider its policies towards Gaza in light of international isolation remains uncertain.
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