The ongoing and deep trade between Turkey and Israel is receiving a political brake – the Turks announced that they are banning exports to Israel in 54 different categories from the field of construction and infrastructure, mainly cement and steel and aluminum products, until a ceasefire is announced with Hamas.
Already last week, Israeli importers complained that shipments from Turkey were being delayed at the ports of origin by Turkish customs. Israeli imports from Turkey amount to approximately 3.5 billion dollars per year.
The decision is published a day after the Turkish Foreign Minister, Haku Fidan, said that his country is taking a series of measures against Israel, amid Turkey’s anger at the rejection of Qatar and Turkey’s request to drop humanitarian aid to Gaza. He also said that the measures were approved by President Recep Tayyip Erdogan.
In the list of materials banned by Erdogan: profiles and cables made of aluminum, copper, steel profiles, materials intended for building constructions, electric cables, glass intended for construction, and more. It is important to emphasize that 65% of the cement for Israel, which now needs cement more than usual for the reconstruction of the surrounding area and the north, is imported.
In Israel there is only one cement factory – Nesher. After the state encouraged the opening of cement imports from Turkey, this caused the closing of additional cement plants that could not compete with the imports.
Recently, the Association of Manufacturers issued a report warning against dependence on the import of products of which Israel has only one plant, especially in the field of cement. In the association’s opinion, dependence, especially on Turkey, poses a real danger to Israel’s productive independence during an emergency.
Another example of dependence is on the issue of glasses. Today, glass that is used for the casing of the towers is imported from Turkey, while the only glass factory for construction that was in Tzipori, and was purchased by the Fortissimo Foundation, was closed several years ago after it was claimed that it was unable to compete with the cheap imports from Turkey, and became an importer itself.
Uriel Lin, president of the Union of Chambers of Commerce, which represents the importers, said: “This is a serious policy error by the Turkish government. It does not separate economics from policy, and as soon as Turkey bans exports to Israel of a long line of products – it undermines these relations to the detriment of the Turkish economy and to the detriment of its businessmen.” .
Chairman of the Presidency of the Business Sector, Dobi Amitai: “There is a real fear of a boycott and economic sanctions on behalf of other countries and international companies. The report on Turkey’s export restrictions to Israel requires a broad examination and a strategic view of the trade restrictions, which accumulate as an economic expression of Israel’s political isolation. The difficulties in the supply chains and the supply gaps that are created will have a significant effect on the increase in prices, which will immediately affect the cost of living and the activity of the entire economy.”
The builders’ association Boni Ha’aretz said that “cement and many other construction materials are imported from Turkey to Israel. Although it is difficult to accurately estimate the extent of the impact on the local real estate market, there will undoubtedly be an impact on housing and infrastructure prices, if no alternative markets are found from which the state will encourage imports . In the past, during the Corona period, we already witnessed a situation where major markets in the Far East, from which materials and construction products were imported, were closed – which caused a dramatic increase in construction costs. If this scenario repeats, the impact on apartment prices could be very noticeable.”
At the same time, Foreign Minister Israel Katz today ordered the economics department in his office, in what appears to be the beginning of a trade war, to prepare an expanded list of products that Israel will prevent Turkey from exporting to Israel on the grounds that it unilaterally violates the trade agreements, and Israel will take all necessary measures against it. In addition, Israel will appeal to pro-Israeli elements in the US to stop investments in Turkey and to the US Congress to examine a violation of the boycott laws against Israel and impose sanctions accordingly. “Erdogan is sacrificing Turkey’s economic interests to support Hamas,” said Katz.
