Just before President Herzog travels to Erdogan, the Turks are warming economic relations with the Israeli business sector: More than 100 senior businessmen have arrived from Turkey to meet with senior Israeli businessmen, led by the Association of Chambers of Commerce and the Turkish Exporters Association. At an event held this morning at the David Intercontinental Hotel, the parties signed an economic cooperation agreement between Israeli and Turkish companies, followed by dozens of business meetings, 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.
In an event that took place this morning (March 6, 2222), the President of the Association of Chambers of Commerce, Adv. Uriel Lin, signed with his counterpart Mr. İsmail Gülle Chairman of the Turkish Exporters Association (TIM) on an agreement for cooperation MOU, as part of a visit by a large business delegation from Turkey to Israel. This is the largest and most senior business delegation to arrive in the country for many years, and includes about 100 exporters from Turkey.
TIM represents business organizations across 15 business sectors, representing approximately 70,000 Turkish businesses. Among other things from the fields of infrastructure, construction, industry, food, agriculture, commerce, malls and more.
As mentioned this morning, the signing ceremony took place at the David Intercontinental Hotel in Tel Aviv and then over 100 B2B meetings were held between Turkish and Israeli businessmen to develop business collaborations.
Will help with the cost of living
The Association of Chambers of Commerce points out that it is precisely now that the cost of living is struggling that trade with Turkey can help reduce costs that will directly affect the consumer’s personal pocket. The combination of the circumstances of the devaluation with the value of the Turkish currency that made Turkey more attractive, the geographical location that shortens the delivery times from Turkey, which stand at about 10 sailing hours compared to 21 sailing days from China, and cheap labor cost with high quality and production; All of these create a significant window of opportunity for imports 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 the economies. A move that will contribute to lowering the cost of living in Israel, by increasing the range of products and increasing competition in the economy.
A sharp jump in the volume of trade between the countries
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 the trade and stood at 71% in 2021.
Imports from Turkey to Israel stood at 4.76 in 2021, and recorded 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 machines rose by 30%, which is $ 123 million
50% imports of metals, which are $ 470 million
Imports of cement and ceramics and glass products rose by 43%, which is $ 120 million
Most of the increase in the volume of exports was due to the following areas:
Exports of chemical industry 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.
Advocate Uriel Lin, president of the Association of Chambers of Commerce, noted that Turkey is one of the key countries in Israel’s relations with the Middle East. The delegation is a turning point of truth in our future relations with Turkey. A delegation of this level and to this extent 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 in the fields of imports and exports, as well as opening up additional opportunities for cooperation between businesses in the two countries.
Ismail Gola, chairman of the Turkish Exporters ‘Association, said that “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 that “Turkey is a significant economic partner and I hope that the renewal of relations brings 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 it can 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. At the same time, the crisis of the corona, the economy and more, has slowed down the pace of business development in recent years, so we are happy to open more channels to encourage trade relations between the countries. “Turkey and Israel share a broad and correct basis for cooperation and it is of mutual importance to develop every possible channel.”