Since Israel and Turkey signed a bilateral free trade agreement in 1997 trade volume has increased consistently, growing from $1.3 billion in 2001 to $3.5 billion in 2010
According to Turkish media reports, Prime Minister Recep Tayyip Erdogan is considering to sever Turkey's political and economic ties with Israel.
Turkish "Hrriyet" paper reported last week that Turkey had informed the United States that Israel's refusal to apologize for the IDF operation to thwart last year's Turkish flotilla bringing supplies to the Gaza Strip "will lead to further deterioration in the relations between the countries,"
The flotilla was attempting to break the naval blockade that Israel has imposed on the territory. Eight Turkish citizens and one US-Turkish citizen aboard one of the vessels, the Mavi Marmara, were killed in the operation when Israeli commandos taking over the ship were assaulted.
According to "Hrriyet", among the reprisals being considered by Turkey if Israel does not apologize are the downgrading of diplomatic relations between the two countries to the level of second secretary, suspension of all economic and political ties, and an older threat: a visit by Erdoğan to the Gaza Strip. There is also no doubt that Turkey will be an enthusiastic supporter of the Palestinians’ initiative to win UN recognition of a Palestinian state.
Israel and Turkey signed a bilateral free trade agreement in 1997 that caused trade to nearly double within two years. Since then, trade volume has increased consistently, growing from $1.3 billion in 2001 to $3.5 billion in 2010, the first year that saw trade volume exceed $2 billion. In 2011, Turkey increased its level of exports to Israel by 20%. Turkey is Israel's second largest trade partner after the U.S.
Turkey has been one of the most popular tourist destinations for Israelis though lately the numbers have declined significantly.
