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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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Xi Jinping rejects Brussels summit invitation

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18/03/2025

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Chinese President Xi Jinping has reportedly declined an initial invitation to visit Brussels for a summit marking the 50th anniversary of relations with the European Union.

According to two individuals with knowledge of the matter who spoke to the Financial Times, Beijing has informed EU officials that China’s second-ranked leader, Premier Li Qiang, will meet with the presidents of the European Council and Commission in Brussels in Xi’s place for the summit.

EU-China summits traditionally alternate between Brussels and Beijing. While the premier typically attends the summit in Brussels, Xi usually hosts in Beijing. However, the EU believes that the significance of this meeting, which commemorates half a century of diplomatic relations, warrants the presence of the Chinese President.

Both parties have stated that discussions are ongoing, but Xi’s rejection of the invitation has raised questions among many in Brussels.

This year’s summit coincides with a particularly sensitive period in EU-China relations.

Tensions between Brussels and Beijing have escalated since Russia’s intervention in Ukraine in 2022, with the EU accusing China of supporting the Kremlin. The EU is also imposing tariffs on electric vehicles imported from China, citing that they are subsidized.

EU officials assert that China, which recorded a trade surplus of €304.5 billion with the bloc last year, has not made sufficient efforts to rebalance trade by reducing subsidies to its industries and lowering trade barriers for foreign companies operating in the world’s second-largest economy.

A senior EU diplomat told the Financial Times that “relations are icy.”

Lu Shaye, China’s former ambassador to France and currently Beijing’s special representative for European affairs, stated that China’s policy towards Europe has always “advocated peace, friendship, cooperation, and mutual benefit.”

“This has never changed. It is only the contrast with the US’s current policy towards Europe that makes China’s policy towards Europe appear even more visionary, fair, and reasonable. I hope this will be a wake-up call [for Europe],” he said.

The diplomat added, “China has even said that they expect Europe to have a seat at the negotiating table [in Ukraine peace talks].”

EU trade chief Maroš Šefčovič is scheduled to visit China later this month. Spanish Foreign Minister José Manuel Albares told the Financial Times last month that the EU should also see potential opportunities. Albares said, “If China can be a partner, let’s take advantage of that.”

European Commission President Ursula von der Leyen stated in February that the EU would continue to “de-risk” by protecting its industry, while adding, “we may find agreements where we can further expand our trade and investment ties.”

Trump’s imposition of 25% tariffs on steel and aluminium forced the EU to retaliate, even as industry groups warned of the damage it would cause. However, a senior EU official said that a critical focus when it comes to China is defensive measures to keep out the “wave” of Chinese products diverted from the US market due to tariffs.

On Friday, the EU initiated an anti-dumping investigation into exports of adipic acid, used in the production of nylon and numerous other products, to China. This is the 11th such case since October, including those related to sweet corn, metal screws, and waxes.

An EU official stated, “Informal discussions are ongoing, both on the timing of this year’s EU-China summit and on the level of representation.”

The Chinese Foreign Ministry stated that they had “no information to provide” on the matter.

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US to tighten entry rules for Russian citizens

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17/03/2025

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The Donald Trump administration is reportedly planning to introduce new restrictions on entry to the US for citizens of forty-three countries, including Russia and Belarus.

According to The New York Times, citing American officials familiar with the matter, the project was prepared by American diplomats and security units and envisages dividing countries into three categories: “red,” “orange,” and “yellow.”

Travel to the US will be significantly restricted for citizens of the ten countries on the “orange” list.

Only “wealthy business travelers” from these countries will be allowed to enter the country, while tourist and immigration visas may be prohibited.

In addition to Russia and Belarus, Haiti, Laos, Myanmar, Pakistan, Sierra Leone, South Sudan, Eritrea, and Turkmenistan are also planned to be included in this list.

The “red” list includes eleven countries: Afghanistan, Bhutan, Cuba, Iran, Libya, North Korea, Somalia, Sudan, Syria, Venezuela, and Yemen, and citizens of these countries will be completely banned from entering the US.

The 22 countries on the “yellow” list will be given 60 days to address US concerns. Otherwise, these countries may also be placed in the “orange” or “red” categories. This list generally includes Caribbean and African countries.

It is not yet known whether the new regulation will affect existing visas and residence permits (green cards).

It remains unclear whether these will be canceled.

The recommendations regarding the new entry regulation were prepared by the State Department a few weeks ago, but the document may be revised before being submitted to the White House.

In addition, The New York Times recalled that in January, Donald Trump signed a decree envisaging the identification of countries whose information provided was “insufficient for verification” and the partial or complete suspension of entry for citizens of these countries.

The newspaper also noted that Trump imposed a similar ban during his first presidential term (2017-2021), but this ban was later lifted by his successor, Joe Biden.

The report noted that officials from various government agencies declined to comment on the matter.

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CK Hutchison shares fall after China criticizes Panama port sale

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4 days ago

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14/03/2025

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Shares in Hong Kong-based conglomerate CK Hutchison fell 5% on Friday after China criticized the sale of its Panama Canal ports and suggested it should “think twice” about a $22.8 billion deal with US asset manager BlackRock.

A strongly worded commentary, which first appeared in Hong Kong’s Beijing-backed newspaper Ta Kung Pao and was reposted late Thursday by China’s top office in charge of the territory’s affairs, accused the US of using “despicable means” to pressure the deal.

The article stated, “[Critics] say this is a spineless, fawning, profit-seeking move that sells out integrity for personal gains and disregards national interests. [It is an act of betraying and selling out all the Chinese people].”

It emphasized that China’s maritime transport and trade would be hindered by the US and that CK Hutchison should “think twice” about “what position and side it should be on.”

Dan Baker, a senior equity analyst at Morningstar, said concerns over whether the deal would be completed after securing approval from the Trump administration were reflected in Friday’s share price decline, but that the move might be an “overreaction.”

“To the extent that the company still has assets in China, if the Chinese government is angry with them for making this sale, there is probably some potential investor concern about what might happen to their businesses that are still there,” Baker said.

Mainland China and Hong Kong accounted for about 14% of CK Hutchison’s 2023 revenues, while revenues from the UK and Europe accounted for about 50% of that.

CK Hutchison did not immediately respond to a request for comment. Its shares had risen more than 20% in Hong Kong when the deal was first announced last week.

At the time, Chinese Foreign Ministry Spokesperson Lin Jian declined to comment on the sale but denied Trump’s claims that China controlled the canal.

Under the agreement in principle, 43 ports owned by billionaire Li Ka-shing’s CK Hutchison company, located at both ends of the Panama Canal, will be sold to a consortium that includes BlackRock.

These ports include those in the UK and Germany, as well as Southeast Asia, the Middle East, Mexico, and Australia.

According to the Financial Times, BlackRock CEO Larry Fink briefed senior officials from the Trump administration, including the President and Secretary of State Marco Rubio, to secure their support for the takeover.

The deal was planned a few days after Donald Trump took office. The President said in his inaugural speech: “The Panama Canal is operated by China… and we are taking it back.”

Li, who retired as chairman of CK Hutchison in 2018 and still serves as a senior advisor, was actively involved in the negotiations.

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