Israeli Finance Minister Says to Abolish Free Trade Agreement with Turkey

According to CCTV news, Israeli Finance Minister Smootrich issued a statement on May 16, saying that Israel would abolish the free trade agreement with Turkey and impose 100% tariffs on goods imported from Turkey.

The picture shows the Israeli Finance Minister Smootrich, who said that Israel would abolish the free trade agreement with Turkey

The statement said that this decision is a counter measure to Turkey's decision to suspend all import and export trade activities with Israel, and will be submitted to the Cabinet for approval.

The statement said that Israel will cancel all measures to reduce tariffs on goods imported from Turkey to Israel according to the Free Trade Agreement. In addition, in addition to the current tax rates, it will also levy additional tariffs at 100% of the value of these goods. The Ministry of Finance, the Ministry of Economy, the Ministry of Foreign Affairs and other relevant departments will seek alternative solutions to reduce the dependence of the Israeli economy on Turkey and diversify the sources of goods imports.

The Turkish Ministry of Trade announced on the 2nd of this month that Turkey has decided to suspend all import and export trade with Israel due to the fact that Israel's actions in the Gaza Strip continue to exacerbate the humanitarian disaster in the region. The Israeli Foreign Ministry said on the 3rd that it would take a number of countermeasures against Turkey's decision. Israel decided to take measures to reduce Turkey's economic ties with Palestine in the West Bank and Gaza Strip, and promote the International Economic and Trade Organization to impose sanctions against Turkey for violating trade agreements. Israeli Economy Minister Balkat said on the 3rd that Israel had complained about Turkey's decision to the Organization for Economic Cooperation and Development.

According to the data of Israel's Central Bureau of Statistics, Israel's exports to Turkey in 2023 will be 1.57 billion dollars, and its imports will be 4.61 billion dollars. Turkey is Israel's fifth largest importer and ninth largest exporter.

Extended Reading

Netanyahu roared: We are not vassals of the United States

Earlier, US President Biden "drew a red line" against Israel's intention to attack Rafah, which made Israel quite dissatisfied. The Axios News Network reported on the 15th that one day after Biden's warning, Israeli Prime Minister Netanyahu shouted at the security cabinet meeting: "We are not a vassal of the United States!"

Three sources, including a Netanyahu aide, disclosed the above information. At the cabinet meeting, Netanyahu also mentioned his speech to the Congress in March 2015, when he expressed his opposition to the nuclear agreement between former US President Barack Obama and Iran.

An aide of Netanyahu recalled that Netanyahu also told cabinet members that he knew how to counter American pressure and would do so again if necessary. Netanyahu also said, "When our security is threatened, we will do whatever it takes".

The picture shows Netanyahu, who is dissatisfied with the warning of the US side/Israel Times

Biden said for the first time on the 8th that if Netanyahu ordered a large-scale attack on Rafah in the southern Gaza Strip, he would stop the United States from supplying some weapons to the Israeli army. In addition, Biden rarely admitted that American weapons were used to kill civilians in Gaza. According to the analysis of CNN, Biden's statement is to draw a "red line" for Israel's military action in Rafah.

Two informed Israeli sources told Axios that Netanyahu and his close friend, the Israeli Minister of Strategic Affairs Ron Demer, were surprised by Biden's decision on arms transportation and its open ultimatum.

In addition, a senior American official revealed that Biden and other senior American officials had recently told Netanyahu privately many times that if they continued to push for the invasion of Rafah, the United States would really take measures to cancel military assistance. But an Israeli source said that Demer, who served as Israel's ambassador to the United States during the Obama and Trump administrations, told Netanyahu that Biden did not dare to do so.

Senior officials from the United States and Israel said that there was deep distrust between Biden and his close advisers, Netanyahu and Demer, especially on the military attack on Rafah.

A senior Israeli official said that in the past two weeks, most of the contacts between the Biden team and the Israeli government on the Rafah issue were conducted through other Israeli channels, such as Defense Minister Yov Garrant.

Galant recently publicly questioned Netanyahu about the post-war Gaza plan

A senior Israeli official said that Galant regularly communicated with U.S. Secretary of State Blinken, National Security Advisor Sullivan and other officials. Galant is trying to adjust Rafah's action to "minimize friction with the Biden administration".

On the 13th, CNN quoted senior officials of the US government as saying that Israel has assembled enough troops in the Rafah border area to launch a comprehensive invasion in the next few days, but it is unclear whether Israel has made a final decision on this. At the same time, Kurt Campbell, the Deputy Secretary of State of the United States, said that the United States did not believe that Israel could "completely defeat" the Palestinian Islamic Resistance Movement (Hamas) in this conflict.

Axios reports that Garrant's efforts seem to be working so far. American officials said that the Israeli army was carrying out targeted operations in Rafah, but there was no large-scale ground invasion.

Another senior Israeli official said that despite Biden's threat, the United States continued to transport other weapons, and a batch of important American goods were expected to be shipped to Israel this week.