Fischer warns of damage to Israel-Turkish trade

"The consequences will be severe for us."

Governor of the Bank of Israel Prof. Stanley Fischer warned today that the deterioration in Israeli-Turkish relations was liable to damage Israel. "Turkey is an important trading partner for Israel, and the consequences of damage to trade with it will be severe for us," he told the regional cooperation conference, chaired by Minister of Galilee and Negev Development Silvan Shalom, in Tel Aviv today.

Fischer said that while Israel's economy was currently larger than most of its neighbors, Turkey, with a GDP of over $700 billion, was the largest economy in the region, and was close to becoming an economic great power in global terms. "Turkey is rebuilding its standing as an important player in regional trade, with Asian countries, with Europe, and with the Middle East," he said.

"Turkey is growing fast. It is beginning to be the most productive country in Europe," added Fischer.

Commenting on the Palestinian economy ahead of the UN General Assembly declaration of an independent Palestinian state expected later this month, Fischer said, " The Palestinian economy is very far from where it could be were there full peace between Israel and the Palestinians. They have a sophisticated economy and sophisticated leadership, and there is no reason for their economy not to grow by 15% a year."

In a clear message to Prime Minister Benjamin Netanyahu, Fischer said that the vision of "economic peace" could never replace diplomatic peace. "I don’t believe that economic relations replace political relations. It's not true, and I heard such arguments in Africa. We must not delude ourselves. Political relations that will also have an economic basis will be more stable."

Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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