A draft resolution circulated by the Prime Minister's Office proposes a complete ban on direct imports of goods from Turkey. This severe measure comes in response to Turkish President Recep Tayyip Erdoğan's declared boycott of Israeli goods.
The primary concern is that a total cessation of trade with Turkey will reduce competition and increase prices, negatively impacting Israeli consumers and the economy. Despite Erdoğan's declarations, goods from Turkey have continued to reach Israel through indirect routes. The proposed measure would not stop the import of Turkish-origin goods but would prohibit direct imports from Turkey.
The document circulated to ministers states, "In response to unilateral actions taken by the Republic of Turkey to halt imports to and exports from Israel since May 2024, while discriminating in favor of the Palestinian Authority, it is proposed to instruct the Finance Minister to issue an order prohibiting the import of all goods arriving directly from Turkey to Israel."
The proposal also suggests establishing an advisory committee to monitor changes to the order "according to developments." The committee would be chaired by the Director General of the Prime Minister's Office and include the National Security Advisor, the Director General of the Finance Ministry, the Director General of the Economy and Industry Ministry, and the Director General of the Foreign Ministry or their representatives.
The background to the proposal notes that "In 2023, the total trade volume between Israel and Turkey in goods (excluding diamonds) was $6.2 billion. Of this, $4.6 billion was imports from Turkey, and $1.6 billion was exports from Israel. As a result of the trade halt with Israel, goods from Turkey are now imported to Israel through third countries, and exports have ceased entirely, while imports to the Palestinian Authority continue.
"It should be noted that Turkish imports to the Palestinian Authority constitute about 7% of the total Turkish imports to Israel and the PA. Generally, regarding the types of goods according to customs classification, the Palestinian Authority does not depend on imports from Turkey. According to the Protocol on Economic Relations, which is an annex to the Gaza-Jericho Agreement, it was agreed that there are no customs borders between Israel and the Gaza Strip and Jericho Area, so the movement of goods between Israel and the Palestinian Authority does not require licensing and taxation.
However, Israel's customs borders with the rest of the world are also the customs borders of the Palestinian Authority, and Israel's import laws are also the import laws of the Palestinian Authority.
Turkey's unilateral actions violate the principle of the customs envelope. Such a violation could set a precedent for other countries, thereby endangering national security, especially at this time when Israel is at war. Additionally, this violation may cause economic harm to Israel due to the integration between the Israeli and Palestinian markets."