In a recent development, Israel's Economy and Industry Ministry declared a new policy to impose quotas on scrap metal exports, a decision primarily driven by a critical shortage of steel and iron within the country. This announcement came amidst complex dynamics in international trade relations, particularly with Turkey, following recent geopolitical tensions.
Since the onset of the conflict on October 7, Israel has faced significant disruptions in the supply chain of essential raw materials, particularly for its steel industry, which heavily relies on scrap metal. The situation has worsened, prompting calls from leaders within the local industry for government intervention. In response, starting four months ago, the Economy Ministry began crafting measures to ensure adequate material availability for domestic manufacturers.
Turkey has introduced restrictions on trade with Israel, announcing a list of 54 products whose export it will halt until Israel declares a ceasefire in Gaza
— The New Arab (@The_NewArab) April 19, 2024
Why trade has become a battleground in Turkey-Israel ties ⤵️https://t.co/N6ta5VuufS
Complicating matters further, these domestic measures coincide with new trade barriers from Turkey. Earlier this month, in response to the ongoing Gaza conflict and Israel’s stance on humanitarian interventions, Turkey implemented an extensive embargo on Israeli goods. The Turkish Trade Ministry listed 54 product categories, including key industrial materials like steel, iron, and cement, for which exports to Israel would be halted until specific political conditions are met, including a ceasefire in Gaza and the facilitation of Turkish humanitarian aid to the region.
Historically, Israel exports about one million tons of scrap metal annually, with 90% of it destined for the Turkish steel industry. Despite the implications of these timings, Israeli economic officials stress that the new export quotas are unrelated to Turkey's recent trade restrictions. However, this hasn't stopped Israeli policymakers from contemplating reciprocal trade measures that could affect the Turkish economy. This includes a potential reduction in overall trade with Turkey, as suggested by senior economic figures, who also advocate for bolstering and expanding Israel's local industrial capacity.
President Erdogan in his speech today: “Even if I am left alone, I will continue to defend the Palestinian cause as long as God gives me life.”
— Mila (@ana77_1) April 18, 2024
- According to the CNBC website, Turkey’s exports to Israel amounted to more than $5 billion in goods in 2023. https://t.co/oGVPK72WcF
As the situation evolves, the interplay between local industry needs and international trade policies continues to shape Israel's economic strategies, highlighting the challenges of maintaining stability in both domestic and international markets during turbulent times.
