Turkey has recently decided to halt trade with Israel without making an official announcement, as reported by Globes and later confirmed by the Bloomberg news agency. This unexpected development has raised questions about the impact on trade volume and how it is affecting both countries. Reports indicate that goods destined for Israeli ports were not being loaded onto ships, while ships that had already left Israel were unable to unload their goods in Turkish ports.
According to the Turkish Bureau of Statistics, trade between Israel and Turkey in 2023 amounted to $6.8 billion, with imports from Turkey comprising 76% of the total trade. Key import categories from Turkey include metals, machinery, plastics, and textiles. The sudden halt in trade has led to concerns in Israel about the economic repercussions, especially in industries heavily reliant on Turkish imports, such as cement and textiles.
The decision to halt trade is believed to be linked to political developments in Turkey, particularly the defeat of the Justice and Development Party in local elections. Israeli officials have criticized Turkish President Recep Tayyip Erdogan for his actions, while business leaders have expressed concerns about the impact on commercial relations between the two countries. There are calls for Israel to explore alternative trade routes and reduce dependence on Turkish imports to mitigate the effects of the trade halt.
Efforts are being made to find creative solutions to circumvent the trade restrictions, such as rerouting goods through third countries to maintain supply chains. Turkish customs are facing challenges in enforcing the trade restrictions, leading to opportunities for companies to explore alternative shipping routes. The halt in trade with Turkey is expected to have a significant impact on various industries, requiring strategic planning to mitigate potential economic losses.
The sudden decision to stop trade with Israel has underscored the need for diversification and resilience in trade relations to navigate geopolitical challenges. As both countries grapple with the implications of the trade halt, there is a recognition of the importance of adapting to changing circumstances and fostering a more self-reliant approach to economic growth.