Turkey Tightens Trade Embargo on Israel by Halting Eur-Med Certificates

Turkey has reportedly intensified its trade embargo on Israel by suspending the issuance of Eur-Med preference certificates, a key customs document under the pan-European-Mediterranean trade framework. The move could significantly complicate tariff-free trade routes involving the EU and increase costs for Israeli importers. The decision comes amid ongoing efforts to enforce Ankara’s 2024 trade ban and close loopholes used to bypass restrictions.

Ankara Stops Issuing Eur-Med Preference Documents

Turkey has tightened its trade embargo on Israel, first introduced in May 2024, by halting the issuance of “preference documents” known as Eur-Med certificates, according to two sources familiar with the matter cited by Globes.

The certificates are issued under the pan-European-Mediterranean (PEM) trade framework, a multilateral agreement that includes the European Union and several Mediterranean countries. The document allows exporters and importers to benefit from customs duty exemptions upon proof of origin.

By suspending the issuance of these certificates for Israel-related trade, Ankara has effectively limited access to a key mechanism that previously enabled tariff-free goods movement through third countries.

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What Is the Eur-Med System?

The Eur-Med certificate applies to trade among pan-European-Mediterranean countries, including:

• The European Union

• Israel

• Turkey

• Jordan

• Egypt

• Morocco

• Tunisia

• Syria

• The Palestinian Authority

The certificate, approved by customs authorities in the exporting country, confirms that goods qualify as “originating products” under agreed rules of origin. It allows for “diagonal cumulation,” meaning products partially manufactured across multiple participating countries can retain preferential tariff treatment when exported to a final destination.

Under this structure, goods produced in Turkey, transferred to the EU, and subsequently exported to Israel could previously benefit from customs exemptions, provided a valid Eur-Med certificate was issued.

The suspension now disrupts that process.

Diagonal Cumulation: A Critical Trade Tool

Diagonal cumulation allows production to be shared among countries with EU trade agreements, preserving origin status and tariff benefits.

For example, vehicles manufactured in Turkey could be shipped to Europe and then to Israel, benefiting from customs duty exemptions if accompanied by proper documentation.

Israeli customs authorities retain the right to request verification of Eur-Med certificates from European counterparts. If Turkish customs authorities refuse cooperation in verification, the preferential treatment becomes effectively unenforceable.

Israel joined the Eur-Med regional agreement in October 2013. The system had previously streamlined trade by allowing the EU to function as a transit junction without requiring separate rule adjustments under each bilateral agreement.

Without the certificates, Turkish goods entering Israel via Europe could face full customs duties, significantly increasing costs.

Attempts to Circumvent the Embargo

Since Turkish President Recep Tayyip Erdoğan imposed the trade embargo in 2024, various methods have reportedly been used to bypass restrictions.

Initially, Turkish customs permitted exports to Israel if the listed recipient was registered in the Palestinian Authority, which lacks its own seaport and relies on Israeli ports.

This created a workaround in which goods were officially exported to Palestinian merchants, who then transferred ownership to Israeli buyers for a commission reportedly around 7%.

In July 2024, data from the Turkish Exporters’ Association showed a 1,180% surge in exports to Palestine compared to the previous year. Imports from Turkey to Palestine reached $119.6 million in July 2024, up from $9.3 million in July 2023.

Certain product categories recorded extraordinary increases:

• Cement: +453,000%

• Steel: +51,000%

• Mining products: +35,000%

Ankara subsequently tightened oversight of exports to the Palestinian Authority, though alternative routes reportedly remain.

Alternative Shipping Routes and Loopholes

Other circumvention methods include routing shipments through Jordan. Goods arriving at Haifa Port destined for Jordan enter Israel physically but are not always classified as having formally entered the country under regulatory frameworks.

This creates opportunities for ownership transfers at the port before the goods move onward.

Additionally, shipments may be routed through third countries such as Egypt, Greece, or Slovenia, where bills of lading are exchanged and goods reloaded onto different vessels before heading to Israel.

Eur-Med documentation has played a crucial role in facilitating customs clearance for such indirect trade flows.

Port Restrictions and Shipping Controls

In August 2024, Turkey’s Ports Authority reportedly refused docking access to vessels operated by Israel’s shipping company ZIM Integrated Shipping Services as part of broader restrictions.

More generally:

• Ships flying the Israeli flag or owned by Israeli entities are barred from docking in Turkish ports.

• Turkish-flagged ships are prohibited from docking in Israel.

• Port authorities require shipowners to declare that vessels have no Israeli connection and are not carrying military or related cargo.

However, large international carriers such as MSC and Maersk have reportedly continued shipping between Turkey and Israel.

Turkey’s Role as a Key Supplier

Before the embargo, Turkey was a critical supplier to Israel.

According to data cited by Israeli industry sources, Turkey ranked as Israel’s fifth-largest import source. Israel was particularly dependent on Turkish cement, which accounted for 71% of cement imports in 2023, the last full year without trade restrictions.

The tightening of Eur-Med certification could further increase supply costs for Israeli importers and complicate logistics across the EU-linked trade network.

Potential EU Implications

Unlike previous unilateral restrictions, the Eur-Med framework is multilateral and includes the European Union.

If Turkey’s suspension of certificate issuance affects broader compliance with the PEM system, it could introduce legal and diplomatic complexities involving EU trade mechanisms.

Notably, the latest step appears to have been implemented without formal public announcement, mirroring the initial rollout of the embargo in 2024, which was reportedly enforced before official confirmation by Turkey’s Ministry of Commerce.

Conclusion

Turkey’s decision to halt Eur-Med certificate issuance represents a significant escalation in its trade embargo against Israel. By targeting a core mechanism enabling tariff-free trade through Europe, Ankara may raise costs and disrupt supply chains more effectively than earlier restrictions.

The move also introduces potential friction within the multilateral trade framework that includes the EU, adding a broader geopolitical dimension to an already sensitive bilateral dispute.

Source:  Globes, PA Turkey news desk

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