Israel’s finance minister Bezalel Smotrich has proposed the termination of the country’s free trade agreement with Turkey in retaliation for the latter’s decision to halt trade with Israel, according to media reports. The proposed plan is subject to cabinet approval.
With the termination of the free trade agreement, the reduced custom duties on products imported from Turkey would be abolished and a 100 percent duty would be imposed on the given products in addition to the existing custom duty rate.
As SteelOrbis previously reported, Israeli foreign minister Yisrael Katz had stated that Israel would take action to limit trade between Turkey and Palestine following Turkey’s decision to halt trade with Israel, claiming that Turkey’s decision violated the trade deals between Turkey and Israel.
As Israel will need to diversify its import sources to cut dependency on imports from Turkey, China, Greece, Germany, Cyprus and Taiwan may be relevant alternatives for Israeli producers, according to research by the Israel Manufacturers’ Association.