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The Israelı Embargo

The Israelı Embargo

On October 7, 2023, after Hamas launched an attack on Israel, Israel's bombings and armed attacks on Gaza have far surpassed what can be defined as "reciprocity." The attacks of the Netanyahu government, which mercilessly killed tens of thousands of children and women, have already been described as "genocide" in the conscience of the international community.

Türkiye initially denounced Israel in political statements on every platform, accusing it of depopulating and occupying Gaza. The difficulties encountered in delivering humanitarian aid to those in need have also been criticized. 

When ceasefire talks failed to produce any results, Türkiye launched a trade embargo against Israel on April 9, 2024. In a statement published on the Ministry of Trade's website, Türkiye decided to restrict the export of certain products to Israel as of April 9, 2024. The Ministry of Trade announced that the restrictions would remain in effect until Israel declared an immediate ceasefire in Gaza and allowed sufficient, uninterrupted aid. 

Among the product groups whose exports to Israel were restricted were aluminum, copper, iron, and steel products, cement, granite, tiles, bricks, electrical cables and panels, fiber optic cables, paints, excavators, forklifts, construction machinery, and 54 items listed in 1119 Customs Tariff and Statistics Positions.

However, a ceasefire between the parties could not be reached. In response, on May 2, the Ministry of Trade issued a statement saying it had decided to suspend trade with Israel, covering all products. The statement read: "In this respect, the second stage of the measures taken at the state level has been initiated, and export and import transactions with Israel have been suspended for all products. Türkiye will strictly and decisively implement these new measures until the Israeli Government allows the uninterrupted and sufficient flow of humanitarian aid to Gaza."

However, both the unavailability of the Suez Canal after the Houthi attacks on the Babulmendep Strait and the sudden Israeli Embargo caught some of our industrialists unprepared. Due to their business connections with Israel, there were disruptions in the transactions subject to inward processing authorization certificates, outward processing authorization certificates, and tax-duty-charge exemption certificates from the Ministry of Trade, and our entrepreneurs were unable to complete their commitments within the periods specified in their documents.

Upon the increase in complaints in this direction, the General Directorate General of Exports announced that the approval of the Minister had been taken to grant an additional period of half the duration of the document, not exceeding three months, if it is proved by documents such as a letter of credit, proforma invoice, a commercial contract that the exports could not be made while the exports were originally to be made to Israel, and that the cargoes could not pass through Suez with the bill of lading or the contract or letter between the exporter and the logistics company, and that the applications within this scope will be evaluated with the saving letter 96520803 dated 06.05.2024.

Upon hearing this, Israel's Foreign Minister, Israel Katz, posted on his social media account on May 9 that Türkiye had withdrawn and canceled most of the trade restrictions against Israel. 

On May 10, Trade Minister Ömer Bolat said on his social media account that Israeli Foreign Minister Katz's statements were "absolutely fictitious" and had nothing to do with reality. Stating that they stand behind the decision taken by the Government on trade with Israel, Bolat said: "This decision remains valid. Our decision to stop trade with Israel is in effect until our conditions are met regarding the cessation of Israeli attacks on Gaza, the establishment of a permanent ceasefire, and the uninterrupted delivery of humanitarian aid to our Palestinian brothers and sisters in Gaza."

First, mentioning the regulation introduced by the Ministry of Trade's letter dated 06.05.2024 is helpful in a way that even non-specialists can understand. When obtaining either inward processing authorization certificates, outward processing authorization certificates, or tax-duty-exemption certificates, no commitment is made that the facilities provided by the documents above will be utilized only for exports to a country. The important thing is to increase Türkiye's exports by using these facilities. However, entrepreneurs need the documents above to realize their export deliveries through commercial agreements with a country or group of countries. Naturally, an entrepreneur who has established such a relationship with a buyer in Israel will face criminal sanctions when the embargo begins, as he cannot fulfill his commitment to the Ministry of Trade. Thus, what will be done is to find new markets for the products in other countries by obtaining additional time for inward processing, outward processing, and tax-duty-exemption certificates. The regulation is limited to this.

Despite the fact that the regulation is limited to this, the Israeli Government's jumping on this decision indicates how difficult a situation they have fallen into on international platforms and in the eyes of their own public opinion.

On the other hand, the fact that the Israeli Embargo decision was implemented by issuing a declaration when it should have been implemented by a Presidential Decree or a Communiqué of the Ministry of Trade published in the Official Journal, and the World Trade Organization should have been notified of this decision, should not be ignored.