Turkey And Israel Shake Hands For The Healthy Bilateral Trade Ahead



PRESENT BILATERAL TRADE RELATIONS BETWEEN TURKEY & ISRAEL?

 

The formal bilateral trade relations or the diplomatic relations between Turkey and Israel were formalized back in the year 1949 when Turkey recognized Israel. In the beginning, the priorities of both nations were the same, and primarily revolved around military, diplomatic, and strategic cooperation.

 

In the year 1996, a mutual FTA was signed between Turkey and Israel to promote the free trade of goods and services from one nation to the other. Following this, in the year 1997, a tax prevention treaty was also signed, and then in 1999, one of the biggest treaties, the Bilateral Investment Treaty was signed.

 

In the year 1999, the partnership between Israel and Turkey was recognized as one of the biggest and most successful strategic partnerships. It was believed that this relationship was capable to change the trade scenario in the middle east because the trade and tourism between these nations were rising significantly and were setting new records every year.

 

Unfortunately, as everything was going smoothly, the relationship between both nations deteriorated in 2008 due to the Gaza war and Israel’s full-fledged raid on Turkey. Although Israel apologized for the same and opened the gates for getting things back to normal in the year 2013.

 

As per the Global Trade Data report, Turkey is the 6th largest export destination for Israel now, and on the other hand, it is also one of the biggest import markets too for Israel. Turkey exports mineral fuels and chemical products to Israel and imports defense equipment in return on a regular basis.

 

 

BILATERAL TRADE FLOW IN THE PAST FEW YEARS (2018-2022)

 

Let’s see in this section what is the current valuation of total imports and exports between both countries and which country is facing a trade surplus and which is facing a trade deficit.

 

BILATERAL TRADE BETWEEN TURKEY AND ISRAEL (2018-2022)

YEAR

TURKEY > ISRAEL

ISRAEL > TURKEY

TOTAL TRADE

2018

USD 3.89 billion

USD 1.71 billion

USD 5.60 billion

2019

USD 4.46 billion

USD 1.60 billion

USD 6.06 billion

2020

USD 4.70 billion

USD 1.49 billion

USD 6.19 billion

2021

USD 6.35 billion

USD 2.04 billion

USD 8.39 billion

2022

USD 7.03 billion

USD 2.45 billion

USD 9.48 billion

 

As per the records of the last five years, the values recorded in Turkey Import Data report are always less than the values mentioned in the same country’s exports database. This shows that Turkey has always enjoyed a trade surplus with Israel.

 

Another point to be noted is that the bilateral trade between both nations has increased in the last 5 years by USD 3.88 billion which is a growth of 69.28%.

 

MAJOR PRODUCTS IMPORTED BY TURKEY FROM ISRAEL

 

As per the Turkey Trade Data report for the year 2022, the major products imported by Turkey from Israel were as follows:

·        Mineral fuels and oils (USD 1.37 billion)

·        Iron and steel (USD 197.94 million)

·        Plastic products (USD 181.54 million)

·        Machinery (USD 95.56 million)

·        Organic chemicals (USD 82.69 million)

·        Paper and cardboard items (USD 61.89 million)

 

Imports of mineral fuels and oils alone contributed almost 56% of total imports registered in Turkey Import Data for the year 2022. Other main items imported by Turkey were aluminum products, inorganic chemicals, fertilizers, optical and precision tools, and precious stones.

 

CONCLUSION

 

As the relations between Turkey and Israel soared in the past, but as per our studies, Israel was granted an apology from Turkey in the year 2013 and things started to get back to normal. Also, bilateral trade grew in the past 5 years despite the international restrictions due to Covid-19 with a significant rise in exports from Turkey. As per our forecast, this bilateral trade will grow further in the future and the relations will strengthen again.

 

For more information about the Import Export Data of any nation, contact Tradeimex today and get the best solutions to your problems from our experts. We also provide personalized and customized trade reports to our customers too.

 

WEBSITE: https://www.tradeimex.in | EMAIL ID: info@tradeimex.in

Location: Pitam Pura, New Delhi, Delhi, India

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