Trade between Israel and Turkey, has more than doubled in the past five years, according to the Turkish Statistics Institute (TurkStat), and confirmed by Israeli officials, to US$5.6 billion.
About half of that is exports from Israel to Turkey, and the other half, Turkish goods, coming to Israel.
According to TurkStat, Turkey exported more than USD 2.9 billion worth of goods to Israel in 2014, while its imports were USD 2.7 billion during the same year.
The trade volume between Ankara and Tel Aviv stood at USD 2.6 billion in 2009. Turkey is Israel’s 7th or 8th largest trading partner. Israel exports chemicals like potash to Turkey, and imports manufactured goods and food.
In the late 1990’s Israel also made extensive arms deals with Turkey for upgrading its aircraft and tanks, and even selling it drones.
Those deals have been put on hold based on the tense political situation. Israel signed a free trade agreement with Turkey in 2000. It was a historic accord, Israel’s first such agreement with a Muslim country. Since then, there has been a remarkably steady progression in trade and investment.
For Israeli entrepreneurs, Turkey, with a population of 75 million, is a key market. Boasting the 15th-largest economy in the world and a $1-trillion GDP, Turkey has a vibrant industrial base. It is particularly strong in construction, electronics, food, machinery, ships, textiles and mining. And its banking and automobile sectors are also thriving.
