Netanyahu proposes banning direct imports from Turkey in response to the Turkish ban | Economy

Israeli Prime Minister Benjamin Netanyahu has proposed to his government a complete ban on direct imports of goods from Turkey after it banned exports to Israel in May, Yedioth Ahronoth reported.

According to the newspaper, Israel’s fear is that a complete halt to trade with Turkey will reduce competition and raise prices, negatively affecting Israeli consumers and the economy.

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Israel is circumventing the decision to ban direct Turkish exports to Israel through indirect means, according to the newspaper, which indicated that the Israeli measure proposed by Netanyahu’s office will not stop the import of goods of Turkish origin, but will ban direct imports from Turkey.

The document distributed to Israeli ministers stated that “in response to the unilateral measures taken by the Republic of Turkey to stop imports to and exports from Israel since May 2024, with discrimination in favor of the Palestinian Authority, it is proposed to instruct the Minister of Finance to issue an order prohibiting the import of all goods coming directly from Turkey to Israel.”

The proposal calls for the establishment of an advisory committee to monitor changes in this regard “in accordance with developments,” to be headed by the Director General of the Prime Minister’s Office and to include the National Security Adviser, the Director General of the Ministry of Finance, the Director General of the Ministry of Economy and Industry, and the Director General of the Ministry of Foreign Affairs or their representatives.

The background to the proposal states that “in 2023, the total volume of trade between Israel and Turkey in goods (excluding diamonds) amounted to $6.2 billion, of which $4.6 billion were imports from Turkey and $1.6 billion were exports from Israel. As a result, after trade with Israel stopped, Israel now imports goods from Turkey via third countries, exports have stopped completely, while Turkey’s imports to the Palestinian Authority continue.”

The proposal added that “Turkish imports to the Palestinian Authority constitute about 7% of the total Turkish imports to Israel and the Palestinian Authority, and in general, with regard to the types of goods according to customs classification, the Palestinian Authority does not depend on imports from Turkey. According to the Protocol on Economic Relations, which is an annex to the Gaza-Jericho Agreement, the two parties agreed that there are no customs borders between Israel and the Gaza Strip and the Jericho Area, and therefore the movement of goods between Israel and the Palestinian Authority does not require a license or (customs) taxes.”

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However, Israel’s customs borders with the rest of the world are also the Palestinian Authority’s customs borders, and Israeli import laws are the same as those of the Palestinian Authority, the newspaper said.

The proposal noted that Turkey’s unilateral measures violate the principle of the “customs envelope” (a unified customs regime for Israel and the Palestinian Authority), which could set a precedent for other countries and thus endanger Israel’s national security, especially at a time when Israel is at war. In addition, “this violation” could cause economic harm to Israel due to the integration of the Israeli and Palestinian markets, according to the newspaper.