“A recent attempt to build an industrial zone at the Erez Crossing was obstructed by Israel. Now the Turkish Union of Chambers and Commodity Exchanges [TOBB] is carrying out a project to build an industrial zone in the West Bank. It has to be built, despite all the obstructions by Israel,” he told a press conference in Istanbul, where he met with Palestinian Economy Minister Hassan Abu-Libdeh during a Turkey-Palestine Business Forum meeting. Çağlayan also said that a “significant” portion of Turkish exports to Israel were sent to Palestine. “Last year, our exports to Israel equaled $1.5 billion. Some $350 million of this went to Palestine via Israel. However, we can ship our products directly to Palestine,” Çağlayan said. Çağlayan asserted that Palestinian authorities were keen to commence direct trade between Turkish and Palestinian firms. He also said that a large group of Turkish businessmen from several business associations would soon accompany him on a trip to Palestine.
“We will encourage Turkish firms to start investing in Palestine. During our visit, we will exert efforts to turn Palestine into an area of investment and enhance the level of economic development there,” he stated. Çağlayan added that the Turkish and Palestinian governments would work together to organize trade fairs in Turkey in a bid to promote Palestinian products and increase the trade volume between the two countries. Also mentioning a free trade agreement with Palestine, he said a partnership committee would convene within the third quarter of 2010 to discuss ways to better benefit from the deal, signed in 2005. The free trade agreement between Turkey and Palestine came into effect in 2005, but it has not been implemented to a satisfactory level, as the parties have failed to meet since that date.
Also delivering a speech at the press conference, Abu-Libdeh said the private sectors of the two countries could sign a series of agreements. Noting that the value of the goods annually purchased by Palestine from Israel amounted to nearly $3 billion, Abu-Libdeh said his country was ready to boycott Israel and purchase Turkish products instead. Abu-Libdeh also invited Turkish companies to Palestine for infrastructure projects. He said Palestine could also introduce certain incentives for the encouragement of new Turkish investments in the country.
