Finance Minister Bezalel Smotrich announced on Thursday that Israel would abolish its free trade agreement with Turkey and impose a 100% tariff on imports from Turkey in retaliation for Turkish President Tayyip Erdogan’s decision to halt exports to Israel.
Smotrich submitted the plan for cabinet approval, including the abolition of the Israel-Turkey Free Trade Agreement, signed in 1996.
The FTA was expanded in 2000 to include all industrial goods, abolishing all duties and charges for importing them from Turkey.
By 2007, the FTA had been expanded further to cover a significant amount of agricultural products, including eggs, live plants, vegetables, dried tomatoes, coffee concentrates, various juices (orange, lemon, apple), beer, several types of nuts, and dried figs and apricots. The FTA reduced their tariffs to 0%.
The recent abolition of this agreement will mean that previous tariff rates will be reimposed, and a new 100% will be added on.
Smotrich clarified that these tariffs would remain in place as long as Turkish President Recep Tayyip Erdogan remains in power.
Increase import diversity
Additionally, the Economy, Foreign Affairs, and Finance Minister are expected to take the necessary steps to diversify Israeli imports away from Turkish products and create alternate import sources to reduce Israeli reliance on the Turkish economy.
The plan explains that the diversification may cause short-term disruptions but should, in the long term, reduce costs and help mitigate future supply issues due to geopolitical events.
The move is also expected to help improve Israeli industrial resilience and competitiveness in the global markets.
Manufacturers Association of Israel, which claims to represent 1800 members responsible for over 90% of Israeli industrial output, pushed manufacturers to pursue alternative imports from China, Eastern Europe, Greece, Germany, Cyprus, and Taiwan.
“Raising the import tariff on Turkey is a suitable Zionist answer to Erdogan,” Smotrich said. “His announcement of the stoppage of imports to Israel constitutes a declaration of an economic boycott and a serious violation of international trade agreements to which Turkey has committed.”
“For too many years, the State of Israel struggled with Erdogan’s antisemitism. Not on my shift!”
“If, at the end of Erdogan’s term, the citizens of Turkey elect a leader who is sane and not a hater of Israel, it would be possible to return to the trade agreement with Turkey.”
Jesus Christ is King
Comments are closed.