Türkiye stops trade with Israel over Gaza: solidarity or politics?

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.

The Turkish Ministry of Trade said: “Export and import transactions related to Israel have been suspended for all products. Turkey will strictly and resolutely implement these new measures until the Israeli government allows an uninterrupted and sufficient flow of humanitarian aid to Gaza.”

The move follows an earlier trade restriction announced last month in which Turkey restricted exports in 54 categories, including iron and steel products, kerosene, construction equipment, machinery, cement, granite, chemicals, pesticides and bricks.

In 2023, trade between Turkey and Israel was $6.8 billion, with 76% representing Turkish exports to Israel. According to the Turkish Statistics Institute (TÜİK), Israel ranked 13th on Turkey’s list of export destinations in 2023 with exports worth $5.4 billion.

Turkish exports played a crucial role in Israel’s economy. Before the embargo, Turkey was Israel’s largest exporter of steel and cement. Azerbaijani oil and even barbed wire were shipped to Israel via Turkish ports. In addition, Zorlu Holding, a Turkish company, produced 7 percent of Israel’s annual electricity.

An attempt to win back domestic support?

While campaigning for the March 31 election, Erdoğan’s ruling Justice and Development Party (AKP) was criticized for maintaining trade ties with Israel despite the ongoing conflict in Gaza.

TRT World Video: “Türkiye stops trade with Israel until Gaza ceasefire”

Meanwhile, pro-government voices claimed that the shipments to Israel were actually destined for Palestine. In December 2023, Trade Minister Ömer Bolat stated: “Goods that arrive in Israel are destined for Palestine.” (Shipments must indicate Israel as the destination. Unfortunately, trade with Palestine must inevitably go through Israel.”

The AKP’s former ally, the hardline Islamist New Welfare Party (YRP), repeatedly criticized the government’s Gaza policy and took advantage of this slogan “Trading with Israel is a betrayal of Palestine.”

Before the local elections, Erdoğan criticized the YRP, accusing them of harming the AKP by splitting their votes. In response, YRP leader Fatih Erbakan said: “We will not let you lose; Continued trade with Israel results in losses.”

While Turkey’s economic problems, such as declining pensions and salaries combined with rising inflation, were the main reasons for the AKP’s election loss, Turkey’s ongoing trade with Israel also played a role among conservative voters. This was even admitted by Erdoğan himself during a party meeting to discuss the election results, according to party insiders.

On April 7, a week after the election, police violently dispersed demonstrators protesting against trade with Israel on Istanbul’s Istiklal Street. Despite the peaceful nature of the pro-Palestinian protests, police arrested 43 people.

Economic impact

Israeli-Turkish relations under Erdoğan were characterized by considerable fluctuations and tensions. In the early 2000s, the relationship 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 is thriving. In 2022, the two countries restored diplomatic relations, but since October 7, their relationship has deteriorated again.

Turkish investigative journalist Metin Cihan has pointed out Turkish deliveries to Israel since the start of the war. After the Ministry of Commerce announced the trade suspension, Cihan said claims that he identified ships in Turkish ports that reported Israel as their destination.

And on May 5, Good Party (IYI) deputy Turhan Çömez shared port records from his X accountIt revealed that the cargo ship Turkon Istanbul left the port of Iskenderun and arrived in Haifa two days after the suspension of trade with Israel.

According to the Israeli financial newspaper Globes, Azerbaijani oil was still being loaded onto tankers bound for Israel in the Turkish port of Ceyhan. Azerbaijani oil is transported via the Baku-Tbilisi-Ceyhan (BTC) pipeline and from Ceyhan to Haifa.

In addition, Reuters reported that Turkish exporters are exploring alternatives to resuming trade with Israel by considering routes through third countries such as Egypt, Jordan or Lebanon. Four export company owners said Turkey’s decision to halt trade with Israel surprised them.

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 had instructed Israeli Foreign Ministry Director General Yaakov Blitshtein to “immediately work with all relevant parties in the government to create alternatives for trade with Turkey, focusing on local production and imports from other countries.” countries”.

In conclusion, Turkey’s decision to suspend trade with Israel in light of the ongoing humanitarian crisis in Gaza can be seen as a genuine expression of solidarity with Palestine. However, given its timing following an electoral defeat and amid protests, it is plausible that this drastic policy shift could also be interpreted as Erdoğan’s attempt to win back the support of conservative voters.

In addition, Turkey has stated that the trade suspension will continue until Israel allows an uninterrupted and sufficient flow of humanitarian aid. Whether Israel will reconsider its policy towards Gaza in light of international isolation remains uncertain.