• Trade between the two countries was worth $6.8 billion in 2023

Turkey stopped all trade with Israel as of Thursday, according to two Turkish officials familiar with the matter, adding to already high-running tensions between the once-close allies over the war in Gaza.

The move expands last month’s restriction on some Turkish exports to Israel, as President Recep Tayyip Erdogan steps up criticism of the Jewish state and tries to consolidate support among conservative voters at home.

Ankara hasn’t formally announced the suspension and it wasn’t clear under what conditions trade would resume. Trade between the countries was worth $6.8 billion in 2023, of which 76% was Turkish exports, according to the Turkish statistical institute.

The move came a day after Turkey announced plans to join South Africa’s case at the United Nations’ highest court as a plaintiff accusing Israel of committing genocide in the Palestinian territory.

Erdogan hosted Hamas’s political leader in Istanbul on April 20, calling for immediate aid to Gaza.

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  • alvvayson@lemmy.dbzer0.com
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    6 months ago

    Usually with these types of things, it tends to be worse for the smaller economy, but both suffer. (See Brexit, Sanctions on Russia, Iran and Venezuela, and also historically those on apartheid South Africa and Rhodesia).

    Turkey has a GDP 2-3x that of Israel, so I don’t know why you’d think it would be worse for them.

    • ArbitraryValue@sh.itjust.works
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      6 months ago

      If I recall correctly, when trade is considered to be zero-sum, the net exporter gains and the net importer loses. Therefore if what’s bad for Israel is what’s good for Turkey and vice versa, this is worse for Turkey.

      Maybe I’m wrong - I wasn’t very good at macroeconomics.

      • alvvayson@lemmy.dbzer0.com
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        6 months ago

        I didn’t think I’d find a mercantilist in 2024, but here we are.

        No, that’s not how it works, otherwise the US would be a poor country based on their massive trade deficit.

        Trade takes place because it is mutually beneficial. Each parties gets something out of each trade.

        Reducing trade therefore will always hurts both countries.

        Exactly which loses more will depend on a lot of factors, but in general smaller economies are more dependent on larger economies.