Israel to terminate free trade deal over Türkiye's exports halt
A general view of Haydarpaşa port at the Bosporus, Istanbul, Türkiye, April 9, 2024. (EPA Photo)


Israel intends to terminate its free trade deal with Türkiye and levy a 100% tariff on all imports from the country, its finance minister said on Thursday, after Ankara decided to cease all trade activities over Tel Aviv's military campaign in Gaza, amid the devastation it has caused in Gaza and as it stands accused of genocide at the World Court.

The plan, far-right Israeli Finance Minister Bezalel Smotrich said, would be submitted to the Israeli Cabinet for approval.

Earlier this month, Türkiye said it was halting all exports and imports as President Recep Tayyip Erdoğan said they could no longer "stand by and watch" Israel's violence in Gaza, citing the "worsening humanitarian tragedy" in the Palestinian territories.

The decision made Türkiye the first of Israel's key trade partners to halt exports and imports over its attacks in Gaza that have killed over 35,000 people, mostly women and children.

The Turkish Trade Ministry has said that companies have three months to fulfill existing orders via third countries.

The bilateral goods exchange between the two countries stood at nearly $7 billion a year.

"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 argued in a statement.

The Gaza Strip is suffering a humanitarian crisis caused by Israel's unprecedented indiscriminate airstrikes and bombardments that have been raging since Oct. 7, with the United Nations and aid agencies warning of impending famine.

Israel's offensive has killed more than 35,270 people in Gaza, mostly women and children, according to local health officials. Malnutrition in the enclave is widespread with international aid efforts blocked by Israel's shutdowns of its Kerem Shalom crossing and the Rafah border crossing with Egypt.

The latest round of the conflict started after the Palestinian resistance group Hamas' attack on Israel that resulted in the deaths of 1,170 people, according to Israel.

Under Smotrich's plan, all the reduced customs rates applicable to goods imported from Türkiye 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 Türkiye to Israel at a rate of 100% of the value of the goods in addition to the existing duty rate.

The Israeli Finance, Economy and Foreign Ministries, the statement said, would also take steps to strengthen Israel's manufacturing while diversifying sources of import to reduce their dependency on Türkiye.

NATO member Türkiye is among the harshest critics of Israel's indiscriminate military actions that have devastated Gaza.

Erdoğan has branded Israel a "terrorist state," repeatedly called for an immediate cease-fire, and accused it of carrying out war crimes and genocide in the Palestinian enclave.

Israel continued its brutal onslaught on the Palestinian enclave despite a U.N. Security Council resolution demanding an immediate cease-fire in the devastated territory.

More than seven months into the Israeli war, vast swathes of Gaza lay in ruins amid a crippling blockade of food, clean water and medicine.

Israel stands accused of genocide at the International Court of Justice (ICJ). An interim ruling ordered Tel Aviv to stop genocidal acts and take measures to guarantee that humanitarian assistance is provided to civilians in Gaza.