Israel to abolish free trade deal with Türkiye in retaliation for trade ban

Israeli Finance Minister Bezalel Smotrich on Thursday announced that Israel would abolish its free trade deal with Türkiye and impose a 100-percent tariff on Turkish imports, in retaliation for Ankara's decision to halt exports to Israel.

The decision, to be submitted to the Israeli cabinet for approval, would remain in effect until the end of the term of Turkish President Recep Tayyip Erdogan, "who is behind the decisions against Israel and its economy," Smotrich said in a statement.

The Turkish Trade Ministry announced on May 2 to halt all trade activities with Israel due to the latter's "non-stop violence" against Palestinians in the Gaza Strip. Smotrich called the Turkish move "a declaration of economic boycott and a serious violation of international trade agreements."

On May 3, the Israeli Foreign Ministry announced that senior officials from the Israeli foreign and economy ministries, as well as the Israel Tax Authority, decided to work toward reducing the economic connection between Türkiye and the Palestinian territories, including the Gaza Strip and West Bank. Türkiye is the Palestinian Authority's largest importing source.

Meanwhile, Israel filed a complaint to the Organization for Economic Cooperation and Development (OECD) against Türkiye over the latter's decision to suspend trade with Israel, said Israeli Economy Minister Nir Barkat in a statement. Both Türkiye and Israel are OECD member countries.

Israeli exports to Türkiye amounted to 1.57 billion US dollars in 2023, while its imports from Türkiye reached 4.61 billion dollars, according to Israel's Central Bureau of Statistics.