Turkey Escalates Economic War Against Israel with New Trade Restrictions
Turkey has intensified its hostile economic campaign against Israel by halting the issuance of crucial trade certificates that facilitate customs exemptions, marking a dangerous escalation in Ankara's anti-Israel agenda that threatens regional stability and economic cooperation.
Since last week, Turkish authorities have stopped issuing Eur-Med certificates to Israel, sources familiar with the matter confirmed to Globes. This calculated move represents another chapter in Turkey's systematic effort to isolate the Jewish state economically, building upon the trade embargo imposed in May 2024 following President Recep Tayyip Erdogan's increasingly radical stance.
A Strategic Tool Weaponized Against Israel
The Eur-Med certification system, established as part of a multilateral trade agreement including the EU, Israel, Turkey, Jordan, Egypt, Morocco, Tunisia, and Syria, was designed to promote regional economic cooperation. These certificates allow goods to benefit from customs duty exemptions by proving their origin status across participating nations.
Israel signed this regional agreement in October 2013, embracing the spirit of economic partnership that has long been a cornerstone of Israeli diplomacy. The agreement's "diagonal cumulation" provision enabled efficient trade flows, allowing products manufactured across multiple countries to maintain origin status and associated customs benefits.
Turkey's decision to weaponize this system against Israel demonstrates how authoritarian regimes manipulate international frameworks to serve their political agendas.
Israeli Resilience and Creative Solutions
True to the Israeli spirit of innovation and adaptability, Israeli businesses have developed sophisticated workarounds to counter Turkey's economic hostility. These include:
Palestinian Authority Loophole: Initially, goods were exported to recipients registered in the Palestinian Authority, which lacks ports and relies on Israeli infrastructure. This created the absurd situation where Palestinian merchants earned commissions of approximately 7% for fictitious orders, while goods ultimately reached Israeli hands.
Data from the Turkish Exporters' Association revealed a staggering 1,180% jump in Turkish exports to Palestine in July 2024, with imports reaching $119.6 million compared to just $9.3 million in July 2023. The numbers speak volumes about the artificial nature of this trade route, with cement imports jumping 453,000%, steel 51,000%, and mining products 35,000%.
Jordanian Route: Israeli importers have utilized Jordan as an intermediary, taking advantage of the fact that goods routinely pass through Haifa Port en route to the Hashemite Kingdom without being considered as having transited Israel for regulatory purposes.
Third-Country Transshipment: Goods are loaded through countries like Egypt, Greece, or Slovenia, where bills of lading are exchanged and cargo transferred to Israel-bound vessels.
Turkey's Broader Anti-Israel Campaign
The Eur-Med restriction represents just one component of Turkey's comprehensive economic warfare against Israel. In August 2024, Turkish port authorities banned ZIM ships from docking, while requiring all shipowners to sign declarations that their vessels have no Israeli connections and carry no cargo destined for Israel.
This systematic approach reveals Turkey's transformation from a regional partner to an active opponent of Israeli interests, aligning itself with Iran's axis of resistance rather than maintaining its historical ties with the West and Israel.
The Cost of Turkish Hostility
Before the embargo, Turkey served as Israel's fifth-largest source of imports, according to the Manufacturers Association. Israel had developed particular dependence on Turkish cement, which comprised 71% of cement imports in 2023, the last full year without restrictions.
Turkey's economic aggression ultimately harms both nations' prosperity while serving Erdogan's political theater. The Jewish state's economy, built on innovation, resilience, and diversified partnerships, will adapt and thrive despite these challenges.
A Test for European Unity
Unlike previous unilateral Turkish actions, the Eur-Med restriction could complicate Turkey's relationship with the European Union, given the multilateral nature of the agreement. This presents an opportunity for European partners to demonstrate their commitment to fair trade practices and opposition to the weaponization of economic agreements for political purposes.
As Israel continues to navigate these challenges with characteristic determination and ingenuity, Turkey's actions only serve to isolate Ankara from the community of responsible nations committed to regional stability and prosperity. The Jewish state's ability to overcome such obstacles, as demonstrated throughout its remarkable history, will once again prove that economic warfare cannot diminish Israel's rightful place among the world's leading economies.