Just before President Herzog travels to Erdogan – Turkey is warming economic relations with Israel’s business sector: A huge delegation of more than 100 senior businessmen arrived from Turkey to meet with senior business sector figures in Israel and signed an agreement for cooperation between business organizations in Israel and Turkey. The event took place this morning (Sunday) at the David Intercontinental Hotel in Tel Aviv.
The delegation was hosted by the Association of Chambers of Commerce and the Association of Turkish Exporters. At the event, the parties signed an economic cooperation agreement between Israeli and Turkish companies and then dozens of business meetings were held, as part of round tables. The event revealed the economic data between the countries, according to which in the past year there has been a 35% jump in the volume of trade between the countries, compared to 2020, and it stood at $ 6.7 billion, compared to 4.9 in 2020.
The President of the Association of Chambers of Commerce, Adv. Uriel Lin, signed with his colleague İsmail Gülle, Chairman of the Turkish Exporters Association (TIM), an agreement on cooperation MOU, during the visit of the delegation from Turkey.
“A turn of truth in our relations with Turkey”
TIM represents about 70,000 Turkish businesses. Among other things from the fields of infrastructure, construction, industry, food, agriculture, commerce, malls and more.
Lynn noted that Turkey is one of the key countries in Israel’s relations with the Middle East. “The delegation is a turning point in our future relations with Turkey. A delegation at this level and scale indicates a welcome renewal in our relations with Turkey. Strengthening and renewing the momentum of economic relations between Israel and Turkey is of great importance for Israel “.
Ismail Gola, chairman of the Turkish Exporters ‘Association, said, “The Turkish Exporters’ Association is sending delegations around the world to promote trade and investment with Turkish companies. Since the beginning of the epidemic, we have organized more than 100 trade delegations to 73 countries, and I believe that the delegation to Israel has great potential, which will significantly increase business opportunities between the two countries. The increase in Turkish exports to Israel during the epidemic proved that Turkey is a reliable and vital exporter to Israel. I sincerely hope that the volume of trade between the countries will increase as soon as possible. “
Ayelet Nachmias-Rabin, Chairman of the Export Institute, said, “Turkey is a significant economic partner and I hope that the renewal of relations will bring with it interesting opportunities for Israeli industry and new collaborations. The Export Institute, which operates in collaboration with the Foreign Trade Administration at the Ministry of Economy, will strive to create a new infrastructure for industry to encourage our partners in Turkey to adopt Israeli technologies and innovation. “Renewal of relations is an opportunity for the entire eastern Mediterranean countries, and I hope that it will also be realized.”
Gad Shoshan, President of the Israel-Turkey Business Council: “The business relationship between Israel and Turkey has been and remains normal throughout the years and has even grown from year to year. “Turkey and Israel share a broad and correct basis for cooperation, and it is of mutual importance to develop every possible channel.”
Will the agreement help reduce costs?
The Association of Chambers of Commerce notes that “especially now that the cost of living is struggling, trade with Turkey can help reduce costs that will directly affect the consumer’s personal pocket. Which stand at about 10 hours of sailing compared to 21 days of sailing from China, and the cost of cheap labor with a high level of performance and production, all of which create a significant window of opportunity for import to Israel.
“The Association of Chambers of Commerce is witnessing a growing demand from Israeli companies interested in finding business partners in Turkey and believes that this delegation will lead to significant cooperation between economies. A move that will contribute to lowering the cost of living in Israel, increasing product diversity and increasing competition in the economy.”
An analysis by the Association of Chambers of Commerce, based on CBS data, shows that the volume of trade between Israel and Turkey was $ 6.7 billion in 2021, compared with 4.9 in 2020, an increase of 35%. Imports from Turkey to Israel constitute the bulk of trade 71%.
The volume of imports from Turkey to Israel stood at 4.76 in 2021, recording an increase of 36% compared to 2020; Exports from Israel to Turkey in 2021 stood at $ 1.9 billion, an increase of 33% compared to 2020.
Most of the increase in the volume of imports was due to the following areas:
Imports of rubber plastics and their products increased by 40%, which is $ 137 million; Imports of electrical equipment machinery increased by 30%, which is $ 123 million; Metals imports – 50%, which are $ 470 million; And imports of cement and ceramics and glass products rose by 43%, which is $ 120 million.
Most of the increase in exports was due to the following areas: exports of chemical industrial products increased by 44%, which is $ 273 million; Exports of mineral products increased by 121%, which is $ 135 million; Exports of simple metals increased by 74%, which is $ 113 million. In contrast, plastic and rubber exports fell by 19%, which is $ 44 million.