Turkish exporters aim to continue trading with Israel indirectly, Reuters reported earlier today (Sunday). Four exporters told the agency that they are looking for options to continue trade with Israel, with the help of intermediaries in third countries. Indirect export, through a third country such as Malta or Greece, is expected to slightly increase the costs for Israeli importers, but may be more profitable than replacing the Turkish suppliers with other suppliers in the world, especially if they require longer shipping routes, or those that are at risk such as in the Red Sea.
Turkey’s decision last week to freeze trade with Israel, mostly exports from Turkey to Israel, created a great fear among Israeli importers of shortages in the coming period and dwindling stocks of electrical products, metals for the construction industry, concrete products and even cars.
Exporters told Reuters that the boycott was imposed all at once and by surprise, so that many goods were stuck at customs, some with special food packaging in Hebrew, which cannot be easily sold to another destination. Some of the export shipments to Israel were intended at all for Palestinian merchants, who are not clear if they will now be able to receive the goods.
Opinions differ about the effect of the boycott
Lior Hamo, CEO of the trade website Last Price, said that “the electrical goods sector is facing a significant blow, when many of the electrical products that everyone has at home come from Turkey. Starting with washing machines, through dishwashers, refrigerators, ovens and stoves, which are imported and produced in Turkey. The meaning of the cessation of exports to Israel could lead to an increase of up to 35% in prices, and in some cases even more.
According to a report published by the JP Morgan bank on Friday, the Turkish boycott is expected to have a significant impact, but only in the short term, until Israel finds alternative sources of supply, which may be more expensive. The bank notes that the share of Israeli exports of goods to Turkey is 2.5% , while the Turkish share in Israeli goods imports is 5.8%, so this is a boycott with limited effect. This share has already decreased in the first quarter of the year to 4.8%, according to the CBS.
Reaching a ceasefire in Gaza may cause Turkey to withdraw completely from the boycott, but in its absence, Turkey may exacerbate the damage to Israel, by blocking ships traveling to and from Israel in the Bosphorus Straits, or blocking its airspace for flights to and from Israel.
