Turkey’s decision to freeze all trade with Israel until the Israeli government allows the transfer of humanitarian aid to Gaza and a permanent ceasefire is reached has surprised and displeased Turkish exporters. Large and small Turkish companies, which supplied Israel with a wide range of products, fell from the clouds despite the fact that last month Turkey had announced a ban on the export of 54 types of products to Israel.

Fears of any repercussions

The total freeze on Turkish exports to Israel primarily affects the traders themselves. Many goods destined for Israel are delayed at customs as the customs clearance system was shut down before the decision on the ban was announced. Last year, Turkish exports to Israel amounted to 5.4 billion dollars, while imports to 1.6 billion dollars. But Turkey did not only send steel, construction materials, vehicles, plastics, electrical appliances and machinery. Many Turkish food companies were sending their products to Israel and by extension to the Palestinian territories. Everyone fears that Turkey’s food ban means that what was destined for the Palestinian territories will be blocked by Israeli customs.

Awaiting further instructions from the Turkish Ministry of Commerce, many Turkish exporters are looking for alternative ways to send their goods to Israel, Will Egypt open borders to Palestinians? through Egypt, Jordan or Lebanon. But even this solution can be ruled out. Food is a particularly sensitive sector as Turkish exporters also produce special packaging for Israel. Bankers believe that this move by Turkey may increase prices in Israel. On the other hand, with the state of the Turkish economy at a critical juncture awaiting arduous reforms to curb inflation hovering at 70%, such a move may hurt Turkish citizens more than Israel.