(Communicated by the Ministry of Economy and Industry Spokesperson)
Pursuant to the recent understanding between Prime Minister Yair Lapid and Turkish Foreign Minister Mevlüt Çavuşoğlu, a new aviation agreement between Israel and Tűrkiye was initialed on Thursday. The agreement is part of the decision to expand and develop bilateral relations that was made by Prime Minister Lapid and Turkish Foreign Minister Çavuşoğlu at their meetings in Jerusalem and Ankara.
The initialing is a vital stage toward fully signing the aviation agreement, which is expected to allow Israeli airlines to resume flying to Tűrkiye. It was made possible thanks to open and constructive negotiations in recent weeks and constitutes an important milestone in advancing bilateral relations.
Israel to send economic & trade attaché to Istanbul
Last Tuesday, Israeli Minister of Economy and Industry Orna Barbivay (Maj.-Gen., ret.) announced her decision to reopen the Israel Ministry of Economy and Industry’s economic office in Istanbul starting August 1, after its activities were drastically reduced about three years ago in the summer of 2019.
The Foreign Trade Administration at the Ministry of Economy and Industry notes that the Turkish economy combines advanced industry alongside agriculture based on traditional farming methods. Turkey is considered the 19th largest economy in the world and many multinational companies have production facilities in the country.
The reopening of the economic attaché in Istanbul will affect about 1540 Israeli companies currently exporting to the Turkish market and help strengthen their business operations within this market. Turkey is the fourth most important trading partner in the Israeli economy and the fifth most important export destination in 2021. A free trade area agreement between Israel and Turkey began operating on May 1, 1997. By virtue of the trade agreement, four rounds of a joint economic committee between the countries took place, with the most recent in Jerusalem in July 2009. In light of the warming of relations between the countries, it has recently been determined that the fifth round will take place in fall 2022 – the exact date to be published.
Director of the Foreign Trade Association Ohad Cohen: “Turkey is a significant foreign trade economy for Israel. Current exports to Turkey are centralized and there is great potential for their expansion. The two countries have a free trade agreement that facilitates significant access for exporters to the market. The reopening of the economic attaché for joint activity will help realize the potential inherent in cooperation, for the benefit of both countries.”
Trade statistics
According to the Foreign Trade Administration, mutual trade of goods and business services between Israel and Turkey in 2021 stood at $7.7 billion, an increase of about 30% compared to 2020. The volume of goods exported to Turkey in 2021 was about $1.9 billion (about 34% of Israeli exports to Euro-Asia and other European countries), a 30% increase compared to $1.4 billion in 2020. Israel exports to Turkey mainly chemicals (52%), base metals (14%) and rubber and plastic (10%) and imports from Turkey base metals (27%), machines and electrical and mechanical machinery (11%), transport products (9%) and even fresh agricultural produce (7%). According to the Foreign Trade Administration, the balance of trade is inclined towards Turkish exports to Israel, which stood at $5.7 billion, while Israeli exports to Turkey amounted to $2 billion.