In a move to reshape economic ties between Israel and Turkey, Finance Minister Bezalel Smotrich announced that Israel would abolish its longstanding free trade agreement with Turkey and impose a 100% tariff on Turkish imports. Smotrich described the decision as a necessary step to protect Israel’s economic interests, marking a significant shift in the trade policies between the two nations.
The free trade agreement, which has been in place since 1997, facilitated a robust exchange of goods between Israel and Turkey, contributing to billions of dollars in bilateral trade annually. The imposition of the 100% tariff is expected to have far-reaching consequences, potentially leading to increased prices for Turkish goods in Israel and disrupting supply chains.
Smotrich cited several reasons for the drastic measure, including what he described as unfair trade practices and the need to bolster Israel’s domestic industries.
We cannot allow our market to be flooded with cheap imports that undermine our local businesses,
He stated.
This decision is about ensuring the sustainability and growth of our own economy.
Turkish officials’ reaction was swift and critical. Turkey’s Trade Minister Mehmet Muş condemned the move, calling it “unjust and damaging to the spirit of economic cooperation.” He warned that Turkey would consider retaliatory measures if Israel proceeded with the tariffs.
Economists and trade experts have expressed concern over the potential fallout from this decision. The sudden imposition of such a high tariff could lead to a decrease in the availability of Turkish products in Israel, affecting sectors such as construction, textiles, and electronics, where Turkish imports are significant. Israeli consumers and businesses may face higher costs as a result.
Additionally, this development comes at a time when geopolitical tensions in the region are already high. The economic rift could exacerbate existing political disagreements between the two countries, which have had a historically volatile relationship.
Despite the potential challenges, Smotrich remains firm in his stance, emphasizing the long-term benefits for Israel’s economy.
This is a strategic decision that will ultimately benefit our nation,
he asserted.
We must prioritize our economic sovereignty and the welfare of our citizens.
As the situation unfolds, both nations must navigate the complexities of this new trade landscape. The global community will be closely watching the repercussions of Israel’s decision and how it impacts the broader economic and political dynamics in the region.
Source: THE TIME OF ISRAEL May 17, 2024
