Israel and Türkiye have long enjoyed a strong economic relationship, with a free trade agreement in place to facilitate the flow of goods and services between the two countries. However, recent developments have put a strain on this relationship, with Israel’s finance minister announcing their intention to terminate the free trade deal and impose a 100% tariff on all imports from Türkiye.
This decision comes after Türkiye’s controversial move to expel the Israeli ambassador and recall its own envoy in response to the violence at the Gaza border. The decision has been met with mixed reactions, with some applauding Israel’s stance while others expressing concern over the potential impact on both economies.
In a statement, Israel’s finance minister stated that the termination of the free trade deal is a necessary step in response to Türkiye’s actions. He emphasized that the decision is not taken lightly, but is a necessary measure to protect Israel’s interests and send a message to Türkiye.
The free trade agreement between Israel and Türkiye has been in place since 1996 and has been a significant factor in the growth of trade between the two countries. Under the agreement, both countries have enjoyed duty-free access to each other’s markets, leading to an increase in bilateral trade and investment.
However, the recent strain in diplomatic relations has caused Israel to re-evaluate the benefits of this agreement. The finance minister highlighted that Türkiye’s actions have caused a significant decline in trade between the two countries, with Israeli exports to Türkiye dropping by 40% in the first quarter of 2018.
In addition to terminating the free trade deal, Israel also plans to impose a 100% tariff on all imports from Türkiye. This move is intended to protect Israeli industries from cheap imports and level the playing field for local businesses.
While this decision may have a short-term impact on trade between the two countries, Israel remains committed to maintaining a positive and mutually beneficial relationship with Türkiye. The finance minister emphasized that this decision is not meant to sever ties between the two nations but is a necessary response to Türkiye’s actions.
Israel’s decision has been met with concern from Türkiye, with officials expressing disappointment and calling for a resolution to the current tensions. However, Israel remains firm in its stance, stating that the free trade agreement cannot continue in its current form while diplomatic relations remain strained.
The decision has also been met with support from some quarters, with Israeli businesses welcoming the move to protect local industries and create a level playing field. The finance minister also reassured that the decision will not have a significant impact on the Israeli economy, as Türkiye only accounts for a small percentage of their total trade.
In conclusion, Israel’s decision to terminate the free trade deal with Türkiye and impose a 100% tariff on imports is a necessary response to the current strain in diplomatic relations. While this may have a short-term impact on trade between the two countries, Israel remains committed to maintaining a positive relationship with Türkiye and hopes for a resolution to the current tensions. This decision is not meant to sever ties between the two nations but is a necessary measure to protect Israel’s interests and send a message to Türkiye.