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Restrictions on exports from Turkey to Israel: Important, but must be backed up by diplomatic measures

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The Turkish Ministry of Trade has decided to impose export restrictions on 54 product groups against Israel, which continues its attacks on Palestine. We spoke to Emir Aşnas, a researcher and writer, about the decision and Israel’s reaction to it.

Turkey’s trade with Israel has long been a subject of debate due to Israel’s operations in Gaza since October. Following criticism from within the country, the Ministry of Trade took action and imposed export restrictions on 54 product groups to Israel.

The first reaction to Ankara’s decision came from Israeli Foreign Minister Israel Katz. In a statement on the social media platform, Katz used the following statements in his post, in which he referred to President Tayyip Erdoğan:

Israel will ask US to impose sanctions

“Erdogan is once again sacrificing the economic interests of the Turkish people for the sake of his support for the Hamas murderers who are raping, murdering and desecrating the bodies of women, girls and adults in Gaza and burning children alive. Israel will not give in to violence and blackmail, will not tolerate unilateral violations of trade agreements and will take parallel measures against Turkey that will damage its economy. We will ask our friends in the United States to draw up another list of products that Israel will prevent Turkey from exporting, to contact US organisations, to stop investments in Turkey and to prevent the import of products from Turkey. Congress will investigate violations of the boycott laws and impose sanctions on Turkey accordingly”.

‘A total export ban is not possible’

Emir Aşnas, a researcher and writer specialising in international trade and investment, public administration and commercial diplomacy, explained the difference between an export restriction and an export ban: “A restriction can take different forms. For example, a certain product may be allowed to be exported within a certain quota, i.e. up to a certain amount, and the amount above that may not be allowed. In the case of a ban, the export of that good may be prohibited altogether. Again, the restriction can be for a certain period of time; in a prohibition, the export of that good is stopped indefinitely.”

More importantly, Aşnas pointed out that it is not possible to ban exports completely and indefinitely within the framework of GATT-WTO (World Trade Organisation) agreements and rules, reminding that both Turkey and Israel are WTO members.

Aşnas explained that the legislation on the application of the restriction has not yet been published in the Official Gazette and said, “Therefore, we do not yet have a clear idea about the scope, principles, duration and implementation methods of this application. At this stage, it is possible to make some predictions based on the official statement of the Ministry of Trade. In this context, we understand that Turkey has suspended the export to Israel of 54 products and product groups listed in the Ministry of Trade’s statement until further notice”.

‘Technical definition of banned goods should be made’

Aşnas provided the following information on how the restriction decision will be implemented in practice: “The Ministry of Trade will issue the relevant legislation, and the customs tariff statistical items will be determined and announced for the technical description and definition of the products subject to the restriction, along with the principles of implementation. In addition, the customs department of the Ministry of Trade will not approve customs declarations for the export of these goods to Israel, and thus the exports will not take place”.

However, he also pointed out that “it is of course possible for the goods in question to be registered with our customs as being destined for another destination and then shipped to Israel from that destination”.

Aşnas pointed out that in order to have a complete idea of how the restriction decision will affect Turkey’s exports to Israel, the technical definition of the goods whose exports will be restricted and the customs tariff statistical items should be determined, and said, “I think the relevant units of the Ministry of Trade are currently carrying out this work. Otherwise, there cannot be a sound application”.

A blow to Israel’s iron and steel imports

Aşnas gave the following information about the product groups announced to be restricted

“Among the products and product groups listed in the Ministry of Trade’s announcement, a significant portion of iron-steel and ferrous metals and products – and even metalworking machinery and chemicals used in metal processing – will be subject to the restriction. Exports of metals and products account for the largest share (over 20 per cent) of Turkey’s exports to Israel by sector. Moreover, Turkey is Israel’s first and most important supplier, especially in the iron and steel sector.”

“However, it can be seen that automotive products (main and sub-industry), which are the second largest sector of Turkey’s exports to Israel, are not or only partially included in this restriction. The list also includes many products and product groups for the chemical and construction sectors. When this list is analysed, it is expected that Turkey’s exports to Israel will be significantly restricted. However, as I have said before, it would be appropriate to wait for the technical definition of the goods within the scope of the restriction in order to make a clearer and more precise judgement on this issue”.

‘The decision seems to have been taken in haste’

Aşnas said it was clear that the decision on the restriction was taken in reaction and in haste, saying, “Otherwise, legal arrangements should have been made on this issue,” and continued, “The second point is that some products that have a significant share in exports to Israel (especially the automotive industry) are excluded from the list; In other words, it is understood that the metal, chemical and construction materials sectors that can be used ‘for military purposes’, which have attracted the most public reaction in the formation of the list, are to be ‘compulsorily’ included, and otherwise an attempt is being made to be selective according to the situation of the sectors. ”

Aşnas said that the Trade Ministry’s statement, “In fact, our country has not authorised and does not authorise the sale of any products or services that can be used for military purposes to Israel for a long time”, is understood to have been written in a “rush of guilt” and in order to ease the reactions of Turkish public opinion on the issue.

Commenting on the Trade Ministry’s statement that the export restrictions were based on UN resolutions and International Court of Justice (ICJ) rulings, Mr Aşnas said: “The UN Security Council resolutions cited, for example, have nothing to do with exports to Israel. They are about allowing humanitarian aid into Gaza, not blocking it. However, one of the resolutions referred to by the Department of Commerce is the injunction issued by the ICJ on 26 January 2024 in the genocide case brought by South Africa against Israel. Of course, this raises the legitimate question of why such a decision has been delayed until today. It is also an important question why Turkey, perhaps the most assertive country in the world on the Palestinian issue, has not itself filed a case with the ICJ.

Aşnas gave the following assessment of whether these export restrictions, which will be temporary until a ceasefire is implemented in Gaza, will be sufficient:

“It is understood that although it is important in terms of the products covered, it is insufficient and the arbitrariness will be seen more clearly after the legal and technical regulations on this issue are finalised. It can be said that this export restriction decision, which was announced hastily and without legal and technical arrangements, is aimed at appeasing the increasing reactions of the Turkish public opinion rather than fulfilling the ICJ decision, and that this export restriction decision, which is not supported by diplomatic/political measures, is a tactical and temporary step”.

The product groups for which the Ministry of Trade has decided to restrict exports to Israel are as follows:

1- Aluminium profiles

2- Aluminium wires

3- Paints

4- Copper profiles, rods and wires

5- Concrete mixers6- Steel tubes and fittings

7- Steel wire rod

8- Steel containers and tanks

9- Steel bridge components10 – Steel towers11- Steel profiles

12- Cement

13- Cement, concrete or artificial stone building blocks and slabs14- All iron and steel building materials15- All iron and steel wire

16- Excavators

17- Electrical cables

18- Electrical panels

19- Tiles

20 – Fibre optic cables and electric conductors21 – Forklifts22 – Granite

23 – Ropes and cables24- Hardware products25 – Hydraulic oils

26 – Rebar

27 – Construction machinery

28 – Building insulation

29 – Glass used in construction

30 – Chemical compounds

31 – Chemical fertilisers

32 – Clinker

33 – Buckets, scoops, shovels, clamps and hooks

34 – Sulphur

35 – Mineral oils

36 – Roller chains

37 – Marble

38 – Metalworking machinery

39 – Chemicals used in metalworking

40 – Mineral fertilisers

41 – Motor oils

42 – Pallets

43 – Plastic pipes

44 – Sandwich panels

45 – Ceramics

46 – Solvent paints

47 – Wire drawing machines

48 – Sawing machines

49 – Bricks

50 – Aircraft gasoline and kerosene

51 – Paints

52 – Cranes

53 – Adhesives and glues

54- Flat steel products

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TÜDAV proposes Aegean cooperation between Türkiye and Greece

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2 days ago

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15/05/2024

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As a result of the Athens Declaration on Friendly Relations and Good Neighborhood signed between Mitsotakis and President Erdoğan during his last visit to Greece, both sides declared that they were determined to maintain friendly relations and peaceful coexistence.

During President Recep Tayyip Erdoğan’s last visit to Athens, the stage was set for a crucial dialogue aimed at thawing the frosty relations between Türkiye and Greece. In a recent follow-up meeting in Ankara, Erdoğan and Greek Prime Minister Kyriakos Mitsotakis continue their discussions, focusing on enhancing bilateral cooperation, particularly in the strategic and often contentious Aegean Sea. This series of high-level talks marks a significant effort by both nations to bridge divides, address longstanding disputes, and promote regional stability through collaborative initiatives in the Aegean, heralding a new era of cooperation between the two neighboring countries.

However, previously both sides also gave the message that it was not possible to expect the controversial issues between the two countries to be resolved in a short time. Finally, Greece announced that it would declare 2 marine parks, one in the Ionian Sea and the other in the Sea of Islands, in order to protect biodiversity and marine ecology within the scope of the 9th Our Ocean Conference (OOC) held in Athens on 16-17 April.

In line with these efforts, the Turkish Marine Research Foundation (TÜDAV) has proposed that both countries work together to establish marine parks in the Aegean Sea. This policy recommendation aims to not only protect the rich biodiversity of the region but also to strengthen environmental and scientific collaboration between Türkiye and Greece, setting a precedent for cooperative governance of shared marine resources.

In its statement on the subject, TÜDAV argued that Türkiye and Greece should cooperate to protect the Aegean Sea. TÜDAV scientists stated that cooperation is needed to primarily protect the four conservation or marine park areas proposed in the Aegean Sea, emphasizing that the Aegean Sea is a sea whose biodiversity has been under threat recently due to factors such as pollution, overfishing, alien species and climate change. Prof. Öztürk believes that Türkiye and Greece, two countries with mutual coasts, should cooperate.

Reminding that the two countries signed a cooperation agreement on environmental problems in 2000, within the framework of bilateral cooperation studies that started in 1988, TUDAV proposes four marine protected areas in the Aegean Sea and proposes cooperation for the declaration of these areas and the establishment of a joint working group on this issue.

Map 1. Areas in the Aegean Sea that are proposed to be jointly declared as marine protected areas or marine parks by the two countries

Stating that according to the Protocol on Specially Protected Areas and Biological Diversity in the Mediterranean of the Barcelona Convention, to which both countries are parties, the parties should call for cooperation before one of the two coastal countries declares a protected area, TÜDAV points out that the two countries have the legal basis for cooperation.

TÜDAV Chairman of the Board and Istanbul University Faculty of Aquatic Sciences Faculty Member Prof. Dr. Bayram Öztürk said, “Sincere cooperation on marine protection in the Aegean Open Sea will benefit both nations. In this way, 30% protection of coasts and seas can be achieved by 2030. In 2013, Türkiye declared an area larger than the island of Cyprus, the Finike Submarine Mountains region, as a protected area. This area is the only open sea protected area in the Eastern Mediterranean and efforts are made to protect approximately 40 marine species. “The same thing can be done jointly in the Aegean Sea.” he said. Öztürk underlined that the Aegean Sea does not belong to a single country and said that cooperation should be made to protect biological diversity and living resources.

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US overtakes China as Germany’s biggest trading partner

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7 days ago

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10/05/2024

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The United States overtook China as Germany’s most important trading partner in the first quarter of this year, according to Reuters calculations based on official data from the Federal Statistical Office.

According to the data, Germany’s trade with the United States, the sum of exports and imports, totalled 63 billion euros ($68 billion) in the January-March period, while the figure for China was just under 60 billion euros.

With a volume of 253 billion euros, China was Germany’s largest trading partner for the eighth time in a row, a few hundred million dollars ahead of the US.

“While German exports to the US continued to rise due to the strong economy there, both exports to and imports from China fell,” said Commerzbank economist Vincent Stamer, explaining the change in the first quarter.

“China has moved up the value chain and is increasingly producing more complex goods itself, which it used to import from Germany. German companies are also increasingly producing locally instead of exporting goods from Germany to China,” Stamer said.

Germany has said it wants to reduce its trade with China, citing political differences and accusing Beijing of “unfair practices”. But Berlin has yet to take any major steps towards a policy of reducing dependency.

German imports of goods from China fell by almost 12 per cent in the first quarter from a year earlier, while German exports to China fell by just over 1 per cent, according to Juergen Matthes of the German economic institute IW.

“The fact that the US economy exceeded expectations, while the Chinese economy performed worse than many had hoped, probably contributed to this,” Matthes said.

Sales to the US currently account for around 10 percent of German goods exports. China’s share, on the other hand, has fallen below 6 per cent, Matthes said.

On the other hand, Dirk Jandura, head of the BGA trade association, said: “If the White House administration changes after the US elections in November and moves further in the direction of closing markets, this process could come to a standstill,” pointing out that the trend of Germany’s trade route shifting across the Atlantic could stop.

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BOTAŞ signs LNG deal with ExxonMobil

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1 week ago

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09/05/2024

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Turkey’s Energy Minister Alparslan Bayraktar said state-owned gas network operator BOTAŞ signed an LNG trade agreement with ExxonMobil on Wednesday in a bid to diversify its sources.

Bayraktar said in a statement on social media platform X: “The US is one of the important countries from which we already receive LNG. With this agreement, which is intended to be long-term, we will take another step towards diversifying our resources,” Bayraktar said, adding that the agreement was signed in Washington.

Noting that Turkey is among the few countries in the world with its gasification capacity, the minister said, “We will continue to contribute to the energy security of our country and our region.

Bayraktar gave no further details of the deal. The energy ministry did not respond to a Reuters request for comment.

In an interview with the Financial Times in late April, Bayraktar said Turkey wanted to “build a new supply portfolio” in energy procurement and said it was in talks with US fossil fuel giant Exxon Mobil for 2.5 million tonnes of liquefied natural gas (LNG) worth about $1.1 billion.

Bayraktar said Turkey was also in talks with other US natural gas producers for LNG deals, stressing that Turkey wanted to “diversify” its natural gas supplies before some of its contracts with Russia expire in 2025 and with Iran in 2026.

In addition to Russia, Azerbaijan and Iran, Turkey imports LNG from Algeria, Qatar, the US and Nigeria.

Russia is the country’s largest gas supplier. Last year, more than 40 per cent of its consumption was met with gas from that country.

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