This action might not be possible to undo. Are you sure you want to continue?
Tuesday, 17 August 2010 15:49
Israeli business executives here in Istanbul like to point out that most of the angry Turks who protested Israel’s deadly raid on a Turkish-led flotilla to Gaza this past spring do not know that their cellphones, personal computers and plasma televisions were made using parts and technology from Tel Aviv.
For Menashe Carmon, chairman of the Israel Turkey Business Council, such ignorance is a blessing for Israelis and Turks. “Turks would find it very hard to boycott Israeli goods because you won’t find any in Turkish supermarkets,” Mr. Carmon said.
“But most of the software Turks use in everything from cell phones to medical equipment is made in Israel. So unless Turks want to stop using their computers, boycotting Israel would mean punishing themselves.”
After the raid, in which nine Turkish citizens were killed on May 31, Turkey demanded an apology that it has yet to receive. It barred Israeli military planes from Turkish airspace, while its Islamist-inspired prime minister said the world now perceived the Nazi swastika and the Star of David together, according to the Hurriyet Daily News, a Turkish newspaper critical of the government.
Israelis, meanwhile, stung by the raw contempt of their former ally in the region, vowed to keep away from Turkey.
But when it comes to the real economy, business pragmatism is trumping political tensions. “No Israeli companies are leaving Turkey,” said Mr. Carmon, an Israeli entrepreneur who was raised in Istanbul. “It is business as usual and if anything, investment is growing.”
In the short term, the flotilla raid has produced some inevitable economic fallout.
The widespread cancellations of holiday bookings by Israelis will cost Turkey some $400 million, analysts say. Turkey, meanwhile, said it would scrutinize all military cooperation,
But Israeli and Turkish business leaders say the economic ties are actually much larger. so they are fighting for the same thing. but they remain confident that pragmatic interests will win out over ideological differences. “Both Israel and the Turkish military establishment want a secular Turkey. The extensive business connections are largely camouflaged.Despite Tension Israel and Turkey Continue their Economic relations Tuesday. because many Israeli businesses use their Turkish partner companies to sell to the Arab world while Turkish companies use their Israeli partners as a gateway to American markets. Israeli officials may be resigned to losing some immediate Turkish government contracts.” said Mehmet Altan. Bilateral trade between the two countries officially amounted to about $3 billion last year. Intelligence Agencies &. making their Israeli identities invisible.Previously only available to Governments. FREE Breaking Investment &. 17 August 2010 15:49 potentially depriving Israeli companies of billions of dollars in lucrative contracts. Even on the defense front. selected Hedge Funds. Click here for more information on our Free Weekly Intelligence Report Yet Israeli companies selling everything from computer software to water irrigation systems in Turkey insist that they have not been affected by recent events.” 2/5 . the army has remained remarkably quiet. that is because they operate mostly in joint ventures with Turkish companies. It is a sign of the times that not a single Israeli company doing business here was willing to be quoted by name for fear that they or their Turkish customers could be hounded. In part. they say. Geopolitical Intelligence . “While the politicians are trying to profit from the conflict. Turkish officials say that close cooperation between Israel and a Turkish military at odds with the Islamist government in Ankara is continuing behind the scenes. a leading Turkish columnist.
co-signed by economic agencies in Turkey and Israel just weeks after the Israeli raid. Necat Yuksel is export manager at Naksan Plastik. a large Turkish plastic packaging producer in Gaziantep. the Turkish prime minister. 3/5 . one of more than 20 such efforts he said were under way. In January of this year.” he said. Israel apologized after its deputy foreign minister insulted the Turkish ambassador by forcing him to sit on a lowered sofa. in Turkey’s southeast.Despite Tension Israel and Turkey Continue their Economic relations Tuesday. inviting Israeli and Turkish companies to bid for a jointly financed research and development project. The two have forged strong military and trade ties. stormed out of the World Economic Forum in Davos. even as the Israeli instructors in Turkey were called home after the raid. Shimon Peres. Yet for all of the recent episodes of mutual recrimination. “Business is business. after clashing with the Israeli president. In 1949. as alarm has grown in the United States and Europe that Turkey is turning its back on the West and courting Israel’s enemies like Iran. In January 2009. a Turkish military delegation arrived in Israel to learn how to operate the same pilotless aircraft often used by Israel to hunt Palestinian militants in the Gaza Strip. Turkish and Israeli business people remain close. consul for economic affairs at the Israeli Consulate in Istanbul. He said the Israeli and Turkish partners were now shopping around their expertise to other countries. Israel’s military industry had teamed up with a Turkish partner to help modernize a fleet of 170 Turkish tanks in a project valued at $700 million. showing off an invitation dated July 15. noted that before the flotilla clash. 17 August 2010 15:49 Within weeks of the flotilla raid. Recep Tayyip Erdogan. Turkey was one of the first countries to recognize Israel shortly after the country declared its existence in 1948. Doron Abrahami. that imported some $40 million worth of plastic chemicals from Israel last year. but diplomatic and political relations have deteriorated in recent years. The $190 million deal for the drones was not canceled.
argued that Israel had far more to lose than Turkey from severed ties.” he said. Israel exported some $1. At the political level.” after Turkey’s prime minister. Yuksel said. He proudly cited many advantages to doing business with Israel.” Mr.” Mr. are just like us Turks. according to the State Statistics Agency in Ankara. Turkey provided an isolated and tiny Israel with a large Muslim ally in a perilous region. according to this article in the New York Times.” Yet most Turks are adamant that Israel needs Turkey far more than Turkey needs Israel. “All the problems are between the politicians. argued that Israeli executives were far more influenced by recent political events than Turks. “Israelis.04 billion to Turkey last year. hot-tempered and stubborn. Ulgen noted that when ties were strong. including geographic proximity and a shared mentality. Sales to Israel made up about 1. His Israeli customers are now wary of travelling to Turkey. who has been visiting Israel for more than a decade. even as the recent clash with Israel had exerted a damaging psychological effect on both countries. countered that bad relations with Israel were riskier for Turkey by stifling Turkey’s aspirations to be a regional power by depriving Turkey of 4/5 . Yet not a single contract had been canceled. Nor has his company shelved its plans to establish a factory in Israel. But Rifat Bali. Mr. “For the Israelis. and his best Israeli client now refers to him as “Erdogan. making Turkey its eighth largest export market. a leading economist in Istanbul. it’s emotional. “For us it comes down to profits. 17 August 2010 15:49 He said sales from Israel showed no signs of abating. Sinan Ulgen. Yuksel. he said.5 percent of Turkey’s total exports of $102 billion last year.Despite Tension Israel and Turkey Continue their Economic relations Tuesday. making it Turkey’s 17th biggest market. a Turkish Jew who had written widely on Turkish-Israeli relations.
“Both Turkey and Israel.com 5/5 . by Syrian President Bashar al-Assad.” Mr. David Caploe PhD Editor-in-Chief EconomyWatch.Despite Tension Israel and Turkey Continue their Economic relations Tuesday.com Source: Economywatch. 17 August 2010 15:49 the ability to play a mediating role – a point also made. Bali said. He said Israel was one of the only countries willing to sell arms to Turkey with no strings attached. “need each other far more than either is willing to admit. during a visit to Ankara. surprisingly enough.” By.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.