Turkey imposes export restrictions on Israel over Gaza as tensions rise

"This decision will remain in place until Israel, under its obligations emanating from international law, urgently declares a ceasefire in Gaza and allows the unhindered flow of... aid," Turkey said.

 TURKISH PRESIDENT Recep Tayyip Erdogan leaves a news conference during a NATO leaders summit in Vilnius, last year. (photo credit: KACPER PEMPEL/REUTERS)
TURKISH PRESIDENT Recep Tayyip Erdogan leaves a news conference during a NATO leaders summit in Vilnius, last year.
(photo credit: KACPER PEMPEL/REUTERS)

Amid escalating tensions between Ankara and Jerusalem, Turkey restricted exports of a wide range of products to Israel on Tuesday, saying the restrictions will remain in force until a ceasefire is declared in Gaza.

It took this step after Israel rejected a Turkish request to take part in an aid air-drop operation into Gaza. Ankara has prided itself on the humanitarian assistance it has provided to Gaza.

The Turkish Trade Ministry said the economic measures would apply to the export of products in 54 different categories, including iron, marble, steel, cement, aluminum, brick, fertilizer, construction equipment, aviation fuel, and more.

“This decision will remain in place until Israel, under its obligations emanating from international law, urgently declares a ceasefire in Gaza and allows the unhindered flow of sufficient humanitarian aid into the Gaza Strip,” it said.

Foreign Minister Israel Katz attacked Turkish President Recep Tayyip Erdogan, in a post on X, accusing him of “sacrificing the economic interests of the people of Turkey” so that he could support “Hamas murderers in Gaza.

“Israel will not submit to violence and extortion and will not condone the unilateral violation of trade agreements,” Katz said, explaining that he had issued an order for Israel to take “parallel measures against Turkey that will harm the Turkish economy”.

 Foreign Minister Israel Katz speaks at the Munich Security Conference in Germany on February 16, 2023  (credit: BOAZ ARAD)
Foreign Minister Israel Katz speaks at the Munich Security Conference in Germany on February 16, 2023 (credit: BOAZ ARAD)

Katz says he will work to curb Israeli investments in Turkey

In addition, Katz said, Israel would work to curb international investments in Turkey, including reaching out to the United States on the matter. Katz said he would ask members of the US Congress “to examine the violation of the boycott laws and impose sanctions on Turkey accordingly.”

Turkey has denounced Israel for its military campaign to destroy Hamas in Gaza since the start of the war on October 7. Ankara has called for an immediate ceasefire, supported steps to try Israel for genocide at the International Court of Justice, and sent thousands of tons of aid to Gaza.

Until the war, Israel and Turkey had worked to repair over a decade of strained relations due to Ankara’s strong support for the Palestinians.

Shortly after the Israel-Hamas war started, Turkey and Israel withdrew their ambassadors while regularly trading barbs. Tuesday’s move, however, is considered the first significant measure taken by Ankara against Israel since the start of the conflict.

According to data published by the Turkish Exporters Assembly (TIM), while trade with Israel has fallen since October 7, exports to Israel have increased each month in 2024 so far. However, total exports in the first quarter of the year amounted to $1.1 billion, down 21.6% year-on-year, TIM data showed.

Over $300 million worth of exports from Turkey have been brought into Israel monthly since October, according to Turkish reports to the UN Comtrade database, despite tensions between the countries and the impact of these tensions on trade.

Turkey has already stopped sending Israel any goods that could be used for military purposes, the Turkish Trade Ministry said.

Turkey exported around $7 billion worth of goods to Israel in 2022, and around $5.5b. in 2023, according to the UN database, based on Turkish reports.

Turkey’s primary exports to Israel in 2022 were raw iron bars, cars, and jewelry, according to The Observatory of Economic Complexity, created by MIT’s media lab. Up until 2022, exports from Turkey to Israel have increased by an annualized rate of around 12% for nearly 30 years running, according to the OEC. Some 5.3% of car imports to Israel are from Turkey, and Turkey is the eighth largest exporter of cars to Israel as of 2022, according to the OEC.

Several Israeli companies announced they would stop importing goods from Turkey in October, following Turkish President Recep Tayyip Erdoğan’s remarks supporting Hamas, The Marker reported. These companies included Supersal, Rami Levi, and Yochananof, according to the report.

In recent weeks, Erdogan has faced growing criticism at  home over his government’s continuing commercial ties to Israel, prompting some anti-government protests and denting popular support.

On Saturday, police in Istanbul detained dozens of protesters demanding an a halt in trade with Israel. Erdogan’s stance toward Israel and the conflict in Gaza was a key factor for some of his party’s losses in the March 31 local elections, with the Islamist New Welfare Party (Yeniden Refah) gaining support on the back of a more hardline stance on Gaza.

Turkey’s main opposition Republican People’s Party (CHP) and other opposition parties supported the decision to restrict exports to Israel but said the measures did not go far enough.

The CHP called for a total halt to trade with Israel, while other parties urged the government to block its airspace and ports to planes and vessels heading to Israel.