PodcastIsrael to scrap free trade deal with Turkey in retaliation
Israeli Finance Minister Bezalel Smotrich announced that Israel plans to revoke its free trade agreement with Turkey and implement a 100% tariff on other imports from Turkey in response to the Turkish government's decision to halt exports to Israel.
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Israeli Finance Minister Bezalel Smotrich on May 16 said Israel would abolish its free trade agreement with Turkey and also impose a 100% tariff on other imports from Turkey in retaliation for Turkish President Recep Tayyip Erdoğan's decision to halt exports to Israel, Reuters reported.
The plan, he said, would be submitted to the cabinet for approval.
Earlier this month, Turkey said it was stopping exports to Israel during the duration of the Israel's war on Gaza, citing "worsening humanitarian tragedy" in the Palestinian territories. But the Turkish Trade Ministry has said that companies have three months to fulfill existing orders via third countries.
"His (Erdoğan's) announcement of the stoppage of imports to Israel constitutes a declaration of an economic boycott and a serious violation of international trade agreements to which Turkey has committed," Smotrich said in a statement.
He noted that Israel's actions would only last as long as Erdoğan remained in power.
"If at the end of Erdoğan's term the citizens of Turkey elect a leader who is sane and not a hater of Israel, it would be possible to return the trade route with Turkey," Smotrich said.
Under Smotrich's plan, all the reduced customs rates applicable to goods imported from Turkey to Israel according to an agreement to the free trade deal would be abolished. At the same time, a duty would be imposed on any product imported from Turkey to Israel at a rate of 100% of the value of the goods in addition to the existing duty rate.
The finance, economy and foreign ministries, the statement said, would also take steps to strengthen Israel's manufacturing while diversifying sources of import to reduce the dependency on Turkey.
Israel's Manufacturers' Association called Smotrich's plan "an appropriate response" for not allowing Erdoğan to damage the economy without a response.
Israel has killed 35,303 Palestinians and wounded 79,261 in the last seven months alone.
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