On May 2, 2024, Turkey announced a ban on all trade with Israel due to the "worsening humanitarian tragedy" in Gaza. According to the Turkish Minister of Trade, the ban will be lifted when a sufficient flow of humanitarian aid flows into Gaza.
As a result of the ban, the Israeli government is looking to increase domestic production, Israeli importers are looking for new or expanded sourcing for certain agricultural imports, and regional media reports some Israeli importers are looking for alternative routes to circumvent the ban from Turkey.
Depending on its length, the trade ban could significantly impact the Israeli market, as Turkey is a strong trading partner due to its geographical proximity, a bilateral free trade agreement established in 1996, and competitive prices. Moreover, in the past six months, many Israeli importers looked to increase imports from Turkey as trade via the Red Sea has been disrupted by Houthi attacks on vessels passing through the Bab al-Mandab Strait.
Turkish exports to Israel
In calendar year 2023, total Israeli imports from Turkey were valued at roughly $5.3 billion (5.7 percent of total Israeli imports). For agricultural and related products, Turkey was the third-largest foreign supplier to Israel, after Russia and the United States. Turkish tomato exports represent the largest agricultural export to Israel. However, sourcing for other agricultural products may also be impacted. Furthermore, a quick increase in Israeli production for some agricultural products would be difficult to realize, as it could take many months or years to sufficiently supply gaps.
Source: apps.fas.usda.gov