Levent Kenez/Stockholm
Turkey’s ruling Islamist government has been accused of delaying a critical tax agreement with Palestine for years, raising questions about its commitment to supporting the Palestinian economy despite strong rhetoric in favor of Palestinian sovereignty.
During a heated session of the Turkish Parliament’s Foreign Affairs Committee on February 11, opposition lawmakers blasted the government for stalling ratification of the “Agreement Between the Republic of Turkey and the State of Palestine on the Avoidance of Double Taxation and the Prevention of Tax Evasion,” which was first signed in 2018.
“How can we claim to stand with Palestine while letting this agreement gather dust for years?” asked Oğuz Kaan Salıcı, a lawmaker from the main opposition Republican People’s Party (CHP). “This should have been approved years ago. Instead, it was allowed to lapse, and only now, with pressure mounting, are we discussing it again.”
The agreement, aimed at preventing companies from being taxed twice on income earned in both Turkey and Palestine, was approved by Palestine back in 2018. However, the Turkish government allowed the bill to expire without a vote in previous parliamentary sessions. Now, amid rising international scrutiny over Turkey’s trade ties with Israel and its broader Middle East policy, the government has rushed to revive it.
Deputy Foreign Minister and former intelligence officer Nuh Yılmaz attempted to defend the delay, saying, “There were procedural and administrative hurdles, and unfortunately, the previous legislative session ended before the issue could be resolved. However, it would be wrong to interpret this as a lack of commitment to Palestine. Turkey has been one of the most vocal supporters of Palestinian sovereignty on the international stage.”
He further said, “We have consistently provided humanitarian and financial aid to Palestine, engaged in diplomatic efforts to support their cause and facilitated bilateral trade. This agreement is another step in that direction, and we are pleased to see it moving forward.”
Minutes of the parliamentary committee meeting on February 11:
But opposition lawmakers were unconvinced. “If it were a priority, it wouldn’t have taken seven years,” said Yunus Emre, another CHP deputy. “Yet, when it comes to agreements with Israel or lucrative trade deals, we’ve seen how fast this government can move.”
Committee Chairman Fuat Oktay, a member of the ruling Justice and Development Party (AK Party) and a former vice president, brushed off the criticism and insisted that Turkey has consistently supported Palestine. “This is not about delay or neglect. It’s about ensuring that every agreement is implemented in a way that maximizes benefit for both nations,” he said.
However, critics pointed to Turkey’s ongoing trade with Israel, despite Ankara’s repeated condemnations of Israeli military actions in Gaza. Some lawmakers pointed to reports suggesting that Turkish exports to Israel have merely been rerouted through third countries like Greece and Bulgaria, undermining the government’s claims of an economic boycott.
“The hypocrisy is staggering,” said Ceylan Akça Cupolo, another opposition MP. “We hear fiery speeches against Israel, but we see trade numbers that tell a different story. And meanwhile, Palestine, our supposed ally, has to wait years for a simple tax agreement.”
Yılmaz, responding to these claims, stated, “The government has been transparent in its trade policies, and allegations of indirect trade with Israel through third countries need to be substantiated with solid evidence. Our focus remains on strengthening economic ties with Palestine and supporting its financial independence.”
The committee eventually approved the bill, paving the way for it to be debated on the floor.
Turkish President Recep Tayyip Erdogan frequently claims that Turkey is the only country enforcing a trade embargo on Israel. Trade Minister Ömer Bolat has echoed this stance, insisting that all exports to Israel have ceased.
Following public criticism in response to protests against Israel, the Erdogan government was compelled to adopt a tougher stance on the country. Ankara announced on April 9 that it would impose trade restrictions on Israel in response to the conflict in Gaza.
“The decision will remain in effect until Israel declares an immediate ceasefire and allows a sufficient and uninterrupted flow of humanitarian aid into Gaza,” the Turkish Ministry of Trade announced. Attached to the announcement was a list of 54 products subject to export restrictions. However, experts expressed skepticism about the government’s decision due to the absence of customs tariff codes in the published list.
Critics argue that trade is being rerouted through Palestine and other third countries, undermining the embargo. Since the restrictions began, Turkey’s trade volume with Palestine has surged dramatically.
According to the Turkish Exporters Assembly (TİM), exports to Palestine skyrocketed by 672 percent in October 2024 compared to the previous year, reaching $95.4 million. Key product categories include steel, whose exports rose from $459,370 to $25.3 million — a 5,400 percent increase — along with major surges in cement, glass and electronic goods.
Skeptics argue that these figures indicate Turkey’s trade embargo on Israel is being circumvented. Before the embargo, Israeli steel imports from Turkey amounted to $50.3 million, in October 2023. Meanwhile, exports of iron and non-ferrous metals to Palestine rose by 26,493 percent, while exports of jewelry — a non-essential good — also saw an unusual increase.
Economic experts point out that given Palestine’s dire economic conditions, such trade fluctuations seem improbable without external influence.
