Turkey cuts all Trade Ties with Israel
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General Studies Paper II: Effect of Policies & Politics of Countries on India’s Interests |
Why in News?
Recently, Turkey announced the complete halt of trade and economic relations with Israel and restricted Israeli aircraft from entering its airspace. The government also restricted Turkish ships from reaching Israeli ports. This marks a new phase of strained relations between the two countries.
Background of Turkey–Israel Relations
- Turkey formally recognized Israel in March 1949 and established its first diplomatic mission in Tel Aviv in 1950, becoming the first Muslim-majority nation to do so.
- Turkey downgraded its diplomatic representation after Israel’s invasion of Egypt’s Sinai in 1956. In 1963, Turkey restored and upgraded its diplomatic presence by establishing a consulate.
- In 1975 Turkey recognized the Palestine Liberation Organization. In 1980 after Israel annexed East Jerusalem, Turkey again reduced its representation level.
- Turkey upgraded diplomatic ties again in 1986 and later recognized the state of Palestine in 1988. This move strained relations further.
- Turkey strongly criticized Israel during the 2008–2009 Gaza offensive. In 2009 Turkey’s leader publicly rebuked Israel’s president in Davos.
- By 2013, diplomatic engagement between Turkey and Israel began to normalize under mutual reconciliation efforts led by Israel’s prime minister.
- In 2016 Israel paid $20 million in compensation and both sides restored ambassadors.
- In 2022 both countries fully restored diplomatic ties amid regional realignments and Turkey’s economic needs.
- Tensions returned in 2023 after an attack by Hamas triggered Israeli operations in Gaza. Turkey condemned the actions and expressed strong support for Hamas.
- In response to Israel’s continued military actions in Gaza, in November 2024, President Erdoğan announced that Turkey was severing all diplomatic relations with Israel.
- In May 2024, Turkey had demanded for a permanent ceasefire and the immediate entry of humanitarian aid to Gaza.
Why Turkey Decided to Sever Trade Ties with Israel?
- Turkey acted in response to widespread suffering in Gaza. By late August 2025, the Gaza Health Ministry reported over 60,000 Palestinians killed and nearly 146,000 injured since October 2023. These casualties include many children and women, signaling a deep humanitarian crisis.
- Turkey responded to fears of famine and malnutrition. The Integrated Food Security Phase Classification declared Gaza at the highest emergency level, Phase 5. UNICEF estimated 18,000 child deaths since the conflict began, a distressing average of 28 children per day.
- On August 29, 2025, the IDF officially designated Gaza City as a “dangerous combat zone.” That move intensified concern across the region, prompting Turkey to act decisively.
- Turkish officials described Israel’s actions using strong moral language. Turkey’s Foreign Minister publicly accused Israel of committing genocide in Gaza. Domestic voices called for firm measures to align Turkey’s policy with its humanitarian values.
Why does Turkey Support Gaza and Palestine?
- Shared History: The Ottoman Empire, which lasted from 1299 to 1922, included Palestine within its borders. During this period, the Ottomans managed the region’s affairs, including its religious sites. This administration left a lasting imprint on the cultural and social fabric of Palestine, fostering a sense of shared history.
- Religious Significance: Jerusalem holds profound religious importance for both Muslims and Christians. The Al-Aqsa Mosque in Jerusalem holds deep significance for Muslims as the third holiest site in Islam. Turkey, as a predominantly Muslim country, has a vested interest in the preservation of Islamic heritage in Jerusalem. This religious connection reinforces Turkey’s support for Palestinian sovereignty, living along with Gaza.
- National Sentiment: Public opinion in Turkey has been a driving force behind its support for Palestine. Demonstrations, rallies, and media campaigns have shown widespread solidarity with the Palestinian people. This national sentiment influences government policies and diplomatic stances.
- Strategic Considerations: Turkey views its support for Palestine as a means to assert its influence in the Middle East. By championing the Palestinian cause, Turkey positions itself as a leader in the Muslim world and a counterbalance to regional powers with opposing interests.
Impact of Turkey’s Decision
- Impact on Turkey: Ending trade with Israel has significantly affected Turkey’s economy, with 2023 bilateral trade valued at roughly $7 billion, particularly impacting exports in construction materials and machinery. This disruption has affected employment in industries linked to these exports, leading to job insecurities in certain sectors.
- Impact on Israel: Israel also faced substantial economic effects from Turkey’s trade suspension. Imports from Turkey, which included essential goods like construction materials, fell by about 70% to $465 million. This decline has prompted Israeli companies to seek alternative suppliers, including partners from the Abraham Accords nations.
- Regional Impact: The closure of Turkish airspace to Israeli flights is likely to cause delays on routes to neighboring countries like Georgia and Azerbaijan. Airlines may need longer alternate paths, increasing fuel costs and travel time. Regional trade and logistics could face temporary disruption. Neighboring countries may negotiate new air corridors to maintain commercial and passenger connections.
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