Despite Sitting on Board of Peace, Turkey Implements New Measures To Block Trade With Israel

In keeping with its reputation as Hamas’s most vocal cheerleader on the international stage, Turkey has announced new measures to stifle Israel’s international trade. Specifically, Ankara will refuse to issue certificates for Israel-bound exports that would enable them to avoid certain steep customs duties.

Having already declared a trade embargo in May 2024, the regime of President Recep Tayyip Erdogan is further tightening restrictions on Turkish-manufactured goods exported to Israel via EU countries. Participating countries in the Pan-Euro-Mediterranean (PEM) Convention on preferential rules of origin, among them Turkey and Israel, lessen tariffs and customs duties through a process known as “diagonal cumulation.” This allows production to be split across multiple PEM countries while preserving the preferential origin status that enables reduced or zero customs duties in the importing country.

Trade between Turkey and Israel in 2023, before the embargo was imposed, was valued at $6.8 billion. Ankara’s latest move underlines its ongoing determination to undermine Israeli trade security. Yet this strategy is not risk-free, could escalate friction between Turkey and the European Union, and raises questions about Turkey’s reliability as a trade partner.

Curbs on Export Certificates Bolster Turkish Trade Restrictions

Israeli and Turkish media began reporting on February 18 that Ankara will no longer offer EUR-MED export certificates for goods bound for Israel through third-party EU or Mediterranean countries.

These certificates are necessary for members’ products to be exempted from steep customs duties. Although pro-Erdogan media outlets insist that Turkey ceased trade with Israel entirely in May 2024, indirect trade soared that same year, which EUR-MED certificates kept profitable.

The EUR-MED restriction will likely hit Israeli importers and Turkish exporters the hardest, particularly in automotives and construction materials. Turkey remains a major producer of cars for international auto brands, many of which are popular among Israeli consumers. While the restriction may complicate supply chains for EU firms doing business with Turkey and Israel, the full impact is yet to be determined. The European Union has remained silent on Ankara’s decision, and the scale of affected trade might be too small to further disrupt Turkey-European Union relations.

Erdogan’s Decision Dispels Hopes for Postwar Rapprochement

The suspension of Turkish EUR-MED certificates for Israel-bound products demonstrates a new high-water mark for the anti-Israel “Boycott, Divestment, and Sanctions” (BDS) campaign as a political force in Turkey. Already broadly popular — polling found that 73 percent of Turks had joined economic boycotts targeting Israel by early 2024 — BDS has become institutionalized under Erdogan, as evidenced by the tightening embargo.

As Turkey assumes a logistical role in the Board of Peace (BOP), which is charged with the reconstruction of Gaza, Erdogan’s embargo may lead to a paradoxical outcome. Increased restrictions may complicate clearances of aid bound for Gaza, most of which must pass through Israeli ports. Moreover, the move’s timing — almost synchronous with the BOP’s inaugural February 19 summit — suggests that Erdogan has no desire to mend ties with Israel. This will continue to foster distrust between Israel and Turkey, hindering the efficacy of Turkish involvement in postwar Gaza.

Washington Should Pressure Turkey To End Economic Warfare Against Israel

The Trump administration enthusiastically welcomed Turkey’s membership in the Board of Peace. Despite objections from Israel, it is Washington’s belief that Ankara can play a positive role in the reconstruction of a Gazan polity that is prosperous and safe. By targeting Israel, Turkey is actively undermining a body focused on boosting the security and well-being of Israelis and Palestinians.

Washington and the European Union must pressure Ankara to terminate this latest initiative to harm Israel economically. Additionally, Washington must increase diplomatic efforts to compel Turkey to terminate its support of Hamas — a U.S. designated terrorist entity. If Ankara fails to act in the spirit of peace, then its membership in the Board of Peace should be terminated.

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