Türkiye’s exports to Israel all but zeroed in May after Ankara decided to suspend all bilateral trade until the Gaza conflict is resolved and aid can freely enter the Palestinian enclave.
Shipments to Israel plunged 99% from a year ago to $4.4 million, the Turkish Exporters Assembly (TIM) data showed on Monday. Exports stood at $277.3 million in April.
Türkiye cited the "worsening humanitarian tragedy" in the Palestinian territories as it announced the decision in early May that made it the first of Israel's key trade partners to halt exports and imports over its relentless attacks in Gaza.
Exports from January through May slipped nearly 40% compared to a year ago to $1.4 billion, the TIM data showed.
Bilateral trade stood at around $6.2 billion in 2023, a decline of nearly 23% year-over-year, data shows.
The halt has left Israeli importers scrambling to find alternative sources of key items ranging from cement to food and cars.
Trade officials have also said one of the main problems will be finding alternative destinations for more than $1.5 billion worth of displaced Israeli exports, largely fuel, chemicals, and semiconductors.
NATO member Türkiye is among the harshest critics of Israel's indiscriminate military actions that have devastated Gaza.
President Recep Tayyip Erdoğan has branded Israel a "terrorist state," repeatedly called for an immediate cease-fire and accused it of carrying out war crimes and genocide in Gaza.
Israel's attacks have killed more than 36,000 people, mostly women and children, in the Palestinian enclave, according to local health officials.
The war started after the Palestinian resistance group Hamas' attack on Israel that resulted in the deaths of 1,170 people, according to Tel Aviv.
After eight months of war, vast swathes of Gaza lay in ruins amid a crippling blockade of food, clean water and medicine.
The enclave is suffering a humanitarian crisis, with the United Nations and aid agencies warning of impending famine.
Prior to the war, ties that had been long strained by the Palestinian issue were slowly improving. Türkiye recalled its ambassador to Israel in November and suspended flights between the two countries.
In response to the trade ban, Israeli Finance Minister Bezalel Smotrich said he would scrap the free trade agreement with Türkiye. The plan, he said, would be submitted to the cabinet for approval.
After Ankara's move, several export companies suggested they were seeking ways of sending goods to Israel via third countries. But exporters and importers in both Türkiye and Israel have since said there is no sign of this succeeding.
Türkiye ranked as Israel's fifth biggest trade partner and accounted for about 5% of its total imports. However, it held large shares in certain industries, including cement, where it accounted for some 40% of Israel's imports.
