Turkey excluded Israel from the list of countries targeted for export, as highlighted by the Israeli economic newspaper Globes, in an escalatory economic step against the backdrop of its war on the Gaza Strip, which is approaching its fourth month.
According to the newspaper, since the outbreak of Israel’s war on Gaza, Turkey has taken diplomatic measures against it, including supporting South Africa’s accusations against it at the International Court of Justice in The Hague.
The latest Turkish economic step comes despite the fact that Israel was ranked 13th in Turkey’s exports in 2023, and exports to it amounted to $5.42 billion, according to the newspaper, which asked a question about why Turkish President Recep Tayyip Erdogan took this step, and will it affect trade between the two sides?
The newspaper said that Turkey, with this decision, will stop supporting companies that work with Israel, and that the decision also sends a message to Turkish companies that if they trade with Israel, the state will not help them, and the decision also means the Turkish Ministry of Trade will stop supporting joint conferences with Israel. .
Trade volume
Turkish exports to Israel declined over the past year to $5.42 billion, from $7 billion in 2022.
According to the Israeli Central Bureau of Statistics, Israel exported goods worth $1.5 billion to Turkey in 2023, declining from $2.5 billion in 2022.
Turkey was among 7 countries that witnessed a significant decline in Israeli exports last year, along with Malaysia, Albania, Taiwan, France, Britain and Canada, according to the newspaper.
The newspaper indicated that more than 50% of Israel’s imports from Turkey are machinery and metals, intended mainly for use in construction, while food supplies constitute 8% of Turkish exports to Israel.
Regarding the alternative markets that Israel may resort to, the newspaper quoted Elad Barshan, co-founder and CEO of the digital supply chain platform Silk Chain, and an expert in international supplies, as saying, “Everything has an alternative. The problem is price and availability.”
He added that the alternatives available to Israel are trade with East Asia, where supply takes much longer, or with Europe, where commodity prices are much higher than in Turkey.
Barshan says that without trade with Turkey, the supply journey time to Israel from East Asia would take 60 days, and if it resorts to Europe, the problem lies in the high prices, according to what the newspaper quoted him as saying.
In his assessment of the possibility of the Turkish authorities intensifying measures against Israel, Barshan said that the heads of Turkish industry will not allow interference as “there is a difficult economic situation there, and interest rates are very high. Turkey needs foreign currency, I do not expect additional steps,” the newspaper quoted him as saying. .
The newspaper ruled out that the Turkish economy would be affected, citing the fact that Turkish exports broke records last year after reaching $255.8 billion, an increase of 0.6% from 2022.
Türkiye alternatives
In the newspaper’s review of alternative export destinations for Israel, it stated that Turkey’s exports to the UAE jumped from $2.7 billion in 2022 to $5.92 billion in 2023, representing 3.4% of Turkey’s total exports.
The second largest jump in exports was to Russia, as exports rose $1.78 billion last year to $9.42 billion, and the third largest jump was to Saudi Arabia, as exports rose $949 million to $2.27 billion, according to the newspaper.
The competition
According to the newspaper, there is competition between Israel and Turkey in the defense industries, as Israeli exports from this industry amounted to $12.5 billion in 2022, while Turkey broke the record for its defense exports last year with contracts worth $4.4 billion.
Turkey and Israel are also competing in regional control of goods. According to the newspaper, Turkey considers itself the regional hub in all fields. Last September, it opposed US President Joe Biden’s proposal to establish a logistical corridor bypassing Turkey between India and Greece via Israel, Jordan, Saudi Arabia and the UAE.
Ankara began to re-promote the plan to establish a transport corridor between Turkey and Iraq, and from there to the Gulf and the Indian Ocean.
The Turkish Minister of Economy and Trade, Omar Polat, said in an interview with Al Jazeera Net that from the 7th of last October until the 4th of last December, trade between Turkey and Israel decreased by more than 50%.
