Recently, the Israeli government announced the abolition of the free trade agreement with Turkey, a move that caused quite a stir between the two countries.
This move is not only a simple economic decision, but also contains complex political calculations and the flavor of international strategic games.
The abolition of the FTA means that the trade relationship between the two countries will be significantly adjusted. Turkish goods exported to Israel will be hampered by tariff or non-tariff barriers, which will inevitably increase the cost of Turkish products and reduce their competitiveness in the Israeli market.
For Israel, it will also be affected in certain areas of imports, because Turkey is an important trading partner, and Israeli importers will also face the problem of rising costs of importing goods from Turkey, which in turn will affect the selling price and market competitiveness of their goods.
This will put economic pressure on companies on both sides, which could lead to a decline in some trade volumes and trade volumes, especially in companies and industries that rely on free trade agreements to reduce costs and expand markets.
History of Israel's trade with Turkey
Trade relations between the two countries have always been quite close, and Turkey has long been one of Israel's most important trading partners in the Middle East.
Long before the two countries signed a free trade agreement, Israel and Turkey began to trade. According to historical data, in 1985 the trade volume between the two countries was only 45.816 million US dollars, but by 1996, this figure had grown to 445.996 million US dollars, an increase of nine times in ten years.
In March 1996, the two countries signed a cooperation agreement that included cooperation projects in a number of areas, such as military cooperation, cultural, educational, scientific and technological cooperation, environmental and nature conservation cooperation, health and agricultural cooperation, etc., and cooperation in these fields undoubtedly strengthened trade ties between the two sides.
As we enter the 21st century, trade between Israel and Turkey continues to grow. According to the Times of Israel, bilateral trade between Turkey and Israel reached $6.8 billion in 2023, a figure that shows the depth and breadth of trade relations between the two countries.
However, despite the generally positive trade relations between the two countries, there have been some twists and turns in recent years.
Since the outbreak of a new round of the Palestinian-Israeli conflict on October 7 last year, Turkey has been committed to ending the conflict through diplomatic means and has sent humanitarian relief supplies to the Gaza Strip, but Israel has consistently blocked humanitarian aid.
To this end, Turkey launched the first phase of measures on April 9, suspending the export of 54 categories of goods to Israel, and the Israeli government has not stopped its operations in the Gaza Strip since then, leading to a further aggravation of the humanitarian catastrophe there. Next, Turkey's second phase of measures was launched, and it was decided to suspend all import and export trade activities with Israel. This decision led to a sharp deterioration in trade relations between the two countries.
Israel responded that due to Turkey's default, a number of countermeasures will be initiated, and the Israeli government will cancel all the measures to reduce tariffs on goods imported from Turkey to Israel according to the free trade agreement between the two sides. At the same time, in addition to the existing tariff rates, Israel will impose an additional 100% tariff on all categories based on the value of goods imported from Turkey.
Behind the Israeli-Turkish trade conflict is geopolitical competition and position differences: Turkey and Israel are geopolitically competitive. The two countries' position and influence in the Middle East also lead to differences in their positions on certain issues, which could lead to mutual restrictions and sanctions on trade.
Turkey, as a significant supporter of Palestine, tends to support the Palestinian side in the conflict.
Israel, meanwhile, stands by its position and actions. Such differences have caused great contradictions and frictions between the two sides in economic and trade cooperation.
Israel strikes back to defend its interests
Earlier, Turkey's decision to suspend all import and export trade activities with Israel was undoubtedly a major blow to economic relations between the two countries.
The Israeli government's swift response by abolishing the FTA and imposing high tariffs is clearly sending a strong signal that Israel will not compromise easily on any issue of national interest.
However, such a counterattack could not only lead to shortages of goods and higher prices, which is not good news for consumers in both countries, but would also increase tensions between the two countries and even affect cooperation at the political and diplomatic levels. Currently, the Israeli government is seeking alternatives to reduce its dependence on Turkey and is working to diversify the sources of goods imported.
In addition, Israel's countermeasures may also have an impact on its international image.
The abrogation of the FTA could be interpreted as an act of retaliation, which could lead some countries to question Israel's position and approach to international relations. At the same time, some international political forces may use the trade conflict between Turkey and Israel to advance their own geopolitical agendas. The intervention of these external forces may exacerbate the contradictions and tensions between the two sides.
The Middle East Geopolitics Behind Israeli-Turkish Trade Issues
The incident also exposed the complex and sensitive political relations between countries in the Middle East.
The interaction of Israel and Turkey, as two important countries in the region, is naturally influenced by various political factors. The current economic and trade dispute not only involves the economic interests of the two countries, but also reflects the game and contest between the two sides in regional and international affairs. It can be said that this is a war without gunpowder, but it is also about the vital interests and national dignity of both sides.
In terms of their position among the countries of the Middle East, Israel and Turkey each have a unique position, and their influence cannot be ignored.
As a developed country in the Middle East, Israel has relatively strong economic, scientific, technological, and military strength, and has a special religious status and influence.
Turkey is a country with important geopolitical influence in the Middle East, it is located at the junction of Asia, Africa and Europe, has an important strategic location, and is in a leading position in the Middle East in terms of territorial area, population and economic development level.
Turkey is not only a member of the G20 but also the only NATO member in the Middle East, maintaining good relations with Western countries and has long been portrayed by the West as a model for democracy and secularization in the Islamic world.
Therefore, cooperation and competition between the two countries will naturally have a far-reaching impact on the stability and development of the Middle East region, and if the trade relations between the two countries continue to deteriorate, it will not be good news for the peace and stability of the entire Middle East region.
In terms of the unique roles each played by Israel and Turkey in the Western world, their national roles are not only based on their geopolitical positions, but also influenced by their historical ties with Western countries, their economic interactions, and their political and cultural values.
Israel's political system, economic model, military power, and technological innovation capabilities are not only widely recognized in the Western world, but also its close relationship with Western countries has also made it an important ally of the West in the Middle East. Israel has maintained long-term strategic cooperative relations with the United States, European countries and other Western powers, and has often participated in the international and security affairs of Western countries, becoming an important force of Western countries in the Middle East.
However, Turkey's role in the Western world is more complex than Israel's. On the one hand, Turkey, as a member of NATO and a candidate for the European Union, maintains close political and military ties with Western countries, and its role in geopolitics and energy security has attracted much attention from the West. On the other hand, Turkey's religious and cultural background also makes it somewhat different from Western countries. As a country where Islam is the main religion, its social, cultural, and political values differ from those of Western countries. This difference often shapes Turkey's relations with the West.
In addition, Turkey's policy in the Middle East in recent years has also attracted the attention of Western countries. Turkey is actively involved in the political and security affairs of the Middle East and is trying to play a greater role in the region. However, some of Turkey's policies conflict with the interests of Western countries, which also affects Turkey's relations with Western countries.
Based on their different national roles, the current conflict between Israel and Turkey on trade issues will also affect the realization of the interests of Western countries in the Middle East, so whether the Western world will mediate and reconcile will also be the focus of attention of the international community in the next stage.
The abrogation of the FTA has not only brought economic losses to the two countries, but also reflects deep-seated political problems, and also reminded other countries that in international relations, countries should pay more attention to resolving differences and problems through dialogue and cooperation, rather than taking some unilateral actions that may exacerbate contradictions.
Of course, we cannot ignore the practical interests and competition in international politics. However, in this era of globalization, the prosperity and development of any country is inseparable from cooperation and exchanges with other countries. Therefore, Israel, in particular, wants to transcend the current predicament and can only ensure its own national interests by seeking more common interests and space for cooperation with other countries.
Overall, Israel's abrogation of the FTA with Turkey is an event with far-reaching implications. It has not only changed the economic and trade relations between the two countries, but also reflects the complexity and volatility of current international politics to a certain extent. As far as we are concerned, we need to maintain a sober understanding and rational thinking, so as to make a more positive voice in future international affairs.