Turkiye renews supply of construction materials to Israel despite trade ban
The Cradle | May 9, 2024
Turkiye’s Ministry of Trade has issued temporary approval for the renewed supply of construction materials to Israel, according to informed sources who spoke with Israel’s Globes news outlet.
“This is not approval for the export of general building products to Israel, but one that is temporary and only for factories that have already worked with Israel,” the report highlights.
Ankara reportedly announced the decision in letters delivered to these particular factories. In a document reviewed by Reuters, the Turkish Ministry of Trade “outlines the three-month reprieve for companies exporting to Israel.”
Globes cites Turkish sources as saying the decision stems “from a meeting in Ankara that took place [on Wednesday] between senior officials of the Turkiye–Israel Chamber of Commerce and senior officials of Turkiye’s Ministry of Trade.”
“Turkish businesspeople expressed their displeasure at the sweeping ban on the export of goods,” the Israeli outlet reports, adding that the Israeli foreign and finance ministries “have been working feverishly” to end the country’s dependence on Turkish imports.
Separately, Israeli Foreign Minister Israel Katz said on Thursday that Turkish President Recep Tayyip Erdogan “retreated” on his earlier position and lifted many of the trade restrictions he imposed on Israel.
In response to the claim, Turkish Trade Minister Omer Bolat told media that Ankara permanently easing its trade ban with Israel is “absolutely fictional” and has “nothing to do with reality.”
More than six months into the Israeli genocide in Gaza, last week, Turkiye finally announced an official halt to all trade with their longtime partner, building upon the decision in April to restrict some exports.
In a deal that significantly developed Israeli–Turkish economic relations, Turkiye and Israel signed a Free Trade Agreement (FTA) in 1996 that mutually exempted both countries from customs duties on industrial product imports.
According to data from the Turkish Exporters Assembly (TIM), Turkish exports to Israel expanded five-fold from $1.4 billion in the early 2000s to $5.1 billion in 2023. Moreover, Turkiye is among the top four states for Israeli imports.
Until last week’s ban, Turkiye provided Israel with 95 percent of its cement, with notable clients that include the Israeli Ministry of Defense. According to the Turkish Statistical Institute (TUIK), cement exports to Israel totaled $174 million in 2023, with $6.39 million recorded from 7 October to the present.
Turkiye also provided 65 percent of Israel’s steel imports.
Data from the TUIK shows that Turkiye exported $105,000 worth of weapon parts to Israel last October and that in 2023, arms exports amounted to $823,112. This included firearms and accessories, as well as firearm components.
Furthermore, 40 percent of Israel’s annual oil consumption is delivered via the Turkish oil hub port of Ceyhan.
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