Türkiye’s trade minister on Friday said none of the country's public institutions are conducting trade with Israel, stressing a steep decline in goods exchange since the unprecedented Israeli military campaign on the Gaza Strip in early October.
"Our government has a policy toward Israel. Our approach as a government is that we have implemented embargo decisions taken at the United Nations. Since the attacks began on Oct. 7, our trade with Israel has rapidly declined," Ömer Bolat told the Türkiye Export Mobilization Summit.
The event was in the eastern province of Malatya and was organized by Türkiye’s leading media group and Daily Sabah’s parent company, Turkuvaz Media.
Israel has been conducting indiscriminate air and ground attacks in Gaza since Oct. 7 in response to a cross-border attack by the Palestinian resistance group Hamas. It has turned vast areas into ruins and has killed at least 27,000 Palestinians, mostly women and children, and injured over 66,000 others, according to local health authorities.
Türkiye, which supports a two-state solution to the decades-old conflict, has called Israel a "terror state" that commits war crimes and violates international law in the Palestinian enclave.
Before the conflict, Türkiye and Israel had ramped up diplomatic contacts to repair long-strained ties but have halted all engagements since October. Throughout the years of tensions, the countries maintained trade links, which remained at high levels and even hit a record in 2022
However, their bilateral exchange, which stood at $8.91 billion in 2022, has nosedived since the start of the latest conflict.
Bolat on Friday affirmed the decline and said there was a nearly 50% drop in trade with Israel. "There is a noticeable decrease in both exports and imports. These trends are reflected in the numbers," he said.
The volume that stood at $430 million in December plunged to $338 million, the minister noted.
“No state institution engages in trade with Israel. The trade of private sector and foreign-capital companies in our country continues to decrease at a lower rate. It is because they have contracts and agreements that they need to adhere to,” Bolat stressed.
"We have export targets, and every year we have programs related to this. We have excluded Israel and a few other countries from this program."
Bolat also elaborated on the trade data he unveiled earlier in the day, stressing the upward momentum since the second half of 2023.
Exports rose 3.6% year-over-year to more than $20 billion, marking the best January sales ever. Imports shrank by 22% to $26.2 billion.
The foreign trade deficit narrowed by 57% to $6.2 billion.
"We launched an 'offensive' from the second half of 2023. Similarly, there has been a decline in our imports since August. The current account deficit has entered a rapid closing process," said Bolat.
The nation's exports reached a third straight annual peak to a total of $255.8 billion in 2023, a 0.6% year-over-year increase from $254 billion in 2022.
Bolat said the record came despite multiple challenges, including the pair of devastating earthquakes that struck Türkiye's southeastern region, including Malatya, a year ago.
The disaster caused around $6 billion in export losses, the minister noted.
Other challenges included global tightening that curbed demand, including in the EU, Türkiye's biggest export market, and geopolitical conflicts in the region.
The government's medium-term program (MTP) estimate was set at $255 billion for 2023.
Bolat said the 12-month rolling exports reached $256.5 billion as of January. The government sees shipments reaching $267 billion by the end of 2024.
Bolat also elaborated on the disruptions in international shipping in the Red Sea, where passage has become perilous due to attacks by Yemen's Houthi rebels that have disrupted global trade.
The Houthis, who control the most populous regions of Yemen, say they will continue their attacks until Israel halts its siege of Gaza.
Bolat said the disruption has led to a supply shortage, particularly in the European market.
"Türkiye, having proven its competence during the pandemic, stands out in this process. We have been receiving information indicating an increase in orders in certain sectors," said the minister.
"Türkiye is in a significant position as a supply hub with its high production capacity and the ability to deliver in two to three days."
Highlighting that Turkey's capability has attracted the attention of foreign investors, Bolat added, "We have recently received numerous visitors from other countries interested in investing. We are aware of applications not only to our ministry but also to other ministries regarding investment."
Also addressing the event, Governor Ersin Yazıcı said Malatya had significantly recovered with the government's efforts since the quakes on Feb. 6 last year.
The disaster claimed over 50,000 lives, leveling hundreds of thousands of buildings, and severely damaging the infrastructure. The overall cost is estimated at about $104 billion.
"There are 36,500 heavily damaged buildings in our city. Currently, 117,000 citizens are living in 73 container cities. Our businesses are conducting sales in 3,150 commercial containers. Our efforts to rebuild the city are ongoing at full speed," Yazıcı said.
He informed that the Environment, Urbanization and Climate Change Ministry has tendered 7,542 country houses and 14,300 residences. Some 6,000 of these are ready and will be delivered on the first anniversary next week, he added.
Stressing the challenging times the city has been through, Yazıcı said, "Hopefully, within a few years, Malatya will continue its journey stronger than before. We are united for this cause, believe in it, and we will succeed."
