Trade ban with Israel impacts Israelis, raising prices and disrupting industries

Israeli media draws attention to the financial consequences of Türkiye’s trade ban on Israel, predicting that prices of basic commodities and food will increase because of the halt in the flow of raw materials

Israeli media express concern about the possible economic repercussions, particularly price hikes, following Türkiye’s decision to ban trade with Israel.

Türkiye plays a vital role in basic goods

Israeli media emphasized that Türkiye plays an important role in importing various products to Israel, including food, disposable products and personal care products.

On the other hand, industries such as construction and automotive are expected to be most affected by the ban.

Adam Friedler, owner and CEO of Good Pharm, one of Israel’s largest supermarket chains, said that Türkiye’s decision will force the Israeli economy to look for more expensive alternatives, as many products are imported from Türkiye due to its geographical proximity.

Responding to Türkiye’s decision, the Israeli Foreign Ministry announced that measures will be taken against Türkiye.

In a meeting between senior officials from the Foreign Ministry, the Economy Ministry and the Israel Tax Authority, a decision was made to work to reduce all economic ties between Türkiye and the Palestinian Authority in the West Bank and Gaza.

Even before the Trade Ministry officially announced the boycott, the maritime sector was the first to notice a disruption in trade between Israel and Türkiye.

Members of the maritime sector in Israel observed that Turkish customs refused to cooperate with them.

According to the report by Calcalist, an Israeli media website, Ankara’s decision to cut trade ties with Israel was an unexpected development for many in Israel, who saw Ankara’s previous threats during the Gaza conflict as empty.

Finding alternative sources for imports is expected to be a time-consuming process, including negotiating new agreements.

However, even if alternative suppliers are found, the prices of goods are likely to be significantly higher than those offered by Turkish suppliers.

Israel complains to the OECD

Israeli Foreign Minister Israel Katz criticized the decision, while President Recep Tayyip Erdogan stood by it, saying it was intended to pressure Israel to agree to a cease-fire in Gaza.

Katz claimed that Turkish actions aimed at harming Israel would ultimately harm the Palestinians.

In addition, Israeli Economy Minister Nir Barkat announced that Israel has submitted a complaint against Türkiye to the Organization for Economic Cooperation and Development (OECD).

Barkat informed OECD President Mathias Cormann that Türkiye’s decision harms the entire European economy and urged the organization to take action against Türkiye.

Despite calls from various organizations, including Palestinian officials, for Israel not to join the OECD, Türkiye did not oppose Israel’s membership and Israel officially became a member of the organization in 2010 with Türkiye’s unanimous vote.

A solution for Palestine

On the other hand, Türkiye’s trade ban will not only affect Israel but also Palestine.

In this regard, Ankara is reportedly working with the Palestinian economic leadership to address the impact of the ban on Palestine.

Türkiye formally announced on Friday that it will suspend $7 billion worth of annual trade with Israel until a permanent cease-fire is reached in Gaza and humanitarian aid is secured.

With this decision, Türkiye became the first country among Israel’s major trading partners to take such a step.

Source: Newsroom