'We are hit at our weakest point': Israeli media reports after Türkiye's trade ban

Israeli media is concerned that prices will rise after Türkiye halted trade with Israel. Türkiye's sudden decision to boycott all trade with Israel has thrown importers and exporters into disarray as they try to find alternatives that make shipping goods from the Far East less expensive because of the disruption of maritime trade in the Red Sea, reported an Israeli online newspaper, The Times of Israel.

Many Israeli importers are exploring indirect ways to circumvent Türkiye's trade ban by shipping goods through third countries such as Slovenia, albeit at higher costs and longer transportation times.

Others are considering replacing Turkish suppliers with more expensive options in Europe and the U.S.

Last week, Türkiye announced its decision to cut off all bilateral trade worth $7 billion annually until a lasting cease-fire and humanitarian aid is in place in Gaza, where Israel attacking innocent Palestinians since Oct. 7.

The move comes after Türkiye imposed trade restrictions on 54 products exported to Israel in April, including cement, steel, aluminum, iron construction materials and equipment.

In the short term, the boycott is expected to increase the prices of various imported products in Israel and lead to supply shortages. While Israeli importers may find alternative sources, increased production and transportation costs will add to the country's already high cost of living.

Elad Barshan, co-founder and CEO of SlickChain, a digital supply chain transportation platform, commented on the immediate impact of Türkiye's decision on Israeli importers, highlighting the difficulty of finding affordable alternatives amid the disruption.

“This hit us at the weakest point in our supply chain, because imports from Türkiye are quite cheap, transit times are speedy, taking only a few days," says Barshan.

Barshan warned that with the removal of the option to import from Türkiye, some importers that are heavily dependent on the Turkish industry will face significant challenges and may even struggle to survive.

In response to Türkiye's actions, Israel announced measures to limit trade between Türkiye and the Palestinian authority. It appealed to international financial forums to impose sanctions on Türkiye for violating trade agreements.

Israeli businesses have become increasingly dependent on imports from Türkiye, while disruptions in maritime trade have increased transportation costs, making goods from China and the Far East more expensive.

Türkiye's sudden suspension of trade is expected to have significant economic consequences for Israel, The Times of Israel says. Despite strained diplomatic relations, Türkiye has been a key trading partner for Israel and is the fifth most significant source of Israeli imports.

In the wake of Türkiye's trade ban, there are concerns in Israel about the potential long-term impact on the country's economy and the need for alternative trade partnerships.

Source: Newsroom