Israeli gov’t backtracks on plan of full embargo on Turkish imports: Report

ISTANBUL

Israeli Prime Minister Benjamin Netanyahu and his finance minister have rescinded their intention to impose a full embargo on imports from Türkiye, including those destined for the Palestinian Authority, according to an Israeli newspaper.

In May, Israeli Finance Minister Bezalel Smotrich announced plans to abrogate the free trade agreement between the two nations in response to Türkiye’s suspension of trade with Israel. Smotrich indicated that these decisions would be presented to the Knesset for approval.

However, the Israeli government faced mounting pressure from Israeli finance officials and sector representatives following the announcement of the intention, according to Yedioth Ahronoth's report on Aug. 19.

A senior ministry official characterized the full embargo on Turkish imports as "an utter folly that would inflict far more damage on Israel than it would on Türkiye,” the daily said.

The Israeli government had aimed to halt all imports from the Palestinian Authority and expand its plans to obstruct imports from Türkiye. Nevertheless, the fact that a substantial portion of goods from Türkiye reaches Israel through the Palestinian Authority diminished the potential impact of such an embargo, amplifying fears of serious adverse effects on the economy.

Representatives of the Israeli business community and the Finance Ministry’s officials successfully persuaded the government of the embargo's detrimental impact on the Israeli economy, the media said.

In discussions held last week, Smotrich conceded that the detriments of the embargo outweighed its benefits and subsequently reversed his decision.

The government thus annulled its plans for a complete embargo on imports from Türkiye, the report said.

Shahar Turgeman, the head of the Federation of Israeli Chambers of Commerce, expressed his satisfaction with the government's decision.

Turgeman thanked the premier and the finance minister for choosing not to punish Israeli consumers and abandoning the nation of a full-scale embargo. He remarked, "A trade war at this juncture is unnecessary and would primarily exacerbate the cost of living."

Israel media last week reported that consumers in Israel are facing soaring prices of vegetables and fruits in local markets as imports decline amid Ankara's halt of trade with Tel Aviv.

"Following the suspension of imports from Türkiye due to its boycott of Israel, there has been a rise in the prices of vegetables and fruits,” Israeli public broadcaster KAN said.

The Turkish Trade Ministry announced on May 2 a suspension of all trade dealings with Israel until humanitarian aid is allowed into the Gaza Strip without restrictions.