Turkish firms bypass Israeli embargo, driving record exports to Palestine

Since Türkiye imposed a trade embargo on Israel in May, there has been a significant surge in exports to Palestine. In July of the previous year, trade between Türkiye and Palestine was valued at $10 million. This July, however, the figure soared to approximately $120 million, representing an extraordinary 1,180% increase.

This dramatic rise raises concerns that some members of the Turkish private sector might be circumventing the trade ban on Israel by channeling goods through third parties. Although some Turkish companies have found ways to bypass the embargo, the majority of the Turkish private sector’s trade with Israel has effectively come to a halt.

Türkiye’s export strategy alters course 

The Turkish Exporters Assembly (TIM) revealed significant insights in its July 2024 export report released last week. Following Türkiye’s decision to restrict exports to Israel on April 9 and then impose a full ban on May 3, the country’s exports to Palestine reached record levels in July.

In July 2023, Türkiye’s exports to Palestine were recorded at $9.3 million. By July 2024, this figure had surged by 1,180%, reaching $119.7 million.

Steady increase since May 

Türkiye’s exports to Palestine, typically hovering around $10 million per month, began to rise sharply after the May announcement halting exports to Israel. In May, exports increased by 338% year-on-year to $51.5 million, and in June, they rose by 536% to $58.6 million. By July, the export figures had climbed to $120 million. 

Notable growth in key sectors 

Particularly striking was the record growth in sectors that previously had strong export ties to Israel: 

• Steel: Exports surged by 51,757%, from $28,000 to $14.3 million. 

• Cement, glass, ceramics and soil products: These sectors saw a 453,681% increase, rising from $1,000 to $4.7 million. 

• Iron and non-ferrous metals: Exports increased by 13,028%, from $30,000 to $3.9 million. 

• Ready-to-wear and apparel: This sector saw a 19,127% rise, from $52,000 to $9.9 million. 

• Chemical products: Exports grew by 4,452%, from $378,000 to $17.2 million. 

• Mining: There was a 35,681% increase, from $14,000 to $5.1 million. 

• Fruits and vegetables: Exports rose by 4,296%, from $160,000 to $7 million. 

• Furniture, paper and forest products: These were exported for the first time and reached $12 million. 

• Automotive: Exports increased by 4,839%, from $48,000 to $2.3 million. 

Israeli ports as gateway 

Türkiye’s exports to Palestine continue to pass through Israeli ports. A report published by Anadolu Agency on April 7, 2024, titled “As Exports to Israel Decline, Shipments to Palestinians Continue,” cited sources from the Trade Ministry. It noted that 96.5% of Türkiye’s exports to Palestine are handled through Israel’s Haifa and Ashdod ports before being transferred to the West Bank and Gaza. 

The report explained that due to Palestine not having its own customs infrastructure, goods shipped from Türkiye to Palestine must pass through Israeli customs. Labels indicating Israel as the destination or the phrase “via Israel” are mandatory for these shipments. 

According to the Israeli newspaper Globe the private sector might be bypassing the state-imposed embargo on Israel by channeling goods through Palestine. The significant increases in the export of products such as cement and steel – items that were among the most exported to Israel before the embargo – lend weight to this claim.