Trade between Turkey and Israel continues through third countries like Greece, despite Ankara's decision to halt direct trade with Tel Aviv over the Rafah invasion in May, according to data released on Thursday.
Figures from Israel's Central Bureau of Statistics (CBS) reveal that Israel imported $116 million worth of goods from Turkey in May, marking a 69 percent decline from the $377 million in the same month last year. In contrast, the Turkish Exporters' Assembly (TIM) recorded only $4 million worth of goods exported to Israel in May, a drop of over 99 percent compared to the previous year.
However, two Turkish businesspeople facilitating trade between Turkey and Israel informed Middle East Eye that since early May, Turkish goods have been re-routed through Greece and other nearby countries to reach Israel. This shift follows Ankara's proclaimed imposition of a total trade ban on Israel until a permanent ceasefire in Gaza is established.
"The Israeli authorities don't even ask Turkish companies to amend their certificate of origin to re-export the goods through Greece because it would increase the costs further, so they are Turkish products," one Turkish businessman told MEE. "White label products with Hebrew tags were prioritized, but every sort of good is getting shipped to Israel, especially those ordered before the trade embargo."
TIM data indicate that Turkey's exports to Greece surged to $375 million in May, up 71 percent from $219 million in the same month last year. Israeli data from May doesn't show an increase in the quantity of imports from Greece, despite the Turkish re-exports, as they are still recorded as imports from Turkey.
"This parallel trade might continue for a few more months, but Israeli companies are quickly aligning themselves with alternative suppliers in other countries like Egypt, Spain, and Italy," a second Turkish businessman said. "Turkey was the net exporter to Israel, and we are now facing the loss of that market."
The trade volume between the two countries was $6.3 billion in 2023, with 76 percent being Turkish exports, according to the Turkish Statistical Institute. Turkey had been a key supplier of affordable products to Israel.
