
Photographer: Kerem Uzel / Bloomberg
Supply Lines is a daily newspaper that tracks the impact of Kovid-19 on business. Sign up here, and Subscribe to our Kovid-19 podcast for the latest news and analysis on the epidemic.
Saudi Arabia is impeding the entry of goods from Turkey, with Turkish companies saying political tensions between regional powers are increasing rapidly in trade.
These claims warned a Turkish official on Thursday that Ankara did not reject the WTO’s appeal; While the world’s largest container line has warned customers about potential disruptions.
Cargo from Turkey to Saudi ports “potential import restrictions and / or various customs clearance will slow down,” the Turkish agent of AP Möller-Maersk A / S said in a sept 29. E-mail.
According to Kemal Gul, the owner of the logistics firm Gulsan Transport, located near Turkey’s southern border with Syria, goods transportation to the land has been blocked, which it says has given the epidemic an excuse for Saudi authorities to restrict access. “We are not holding such issues with Iran or Iraq. It is likely that they will now interrupt maritime transport. ”
Gul, who is also a board member of a National Transport Association, said that he has been receiving frequent complaints about the issue from other logistics companies.
Reject import
Saudi Arabia’s imports from Turkey have declined gradually since 2015 as political tensions escalate between the two countries.
Source: Saudi Arabia General Authority for Statistics
Saudi Arabia is Turkey’s 15th largest export market, with sales of carpets, textiles, chemicals, grain, furniture and steel totaling $ 1.91 billion in the first eight months of the year. This is a 17% drop from 2019, some of which is attributed to viruses affecting global trade. But Saudi figures show that the value of Turkish imports had already been declining each year since 2015.
Casualty killing
The two countries have collided in recent years with ties reaching a low point following the 2018 murder of Washington Post columnist Jamal Khashogi, a critic of the Saudi leadership at the state’s consulate in Istanbul. Many of their differences center around the Saudi monarchy. Resistance For the use of their shared major religion, Islam, as the foundation of a popular political movement, which was assumed by Turkish President Recep Tayyip Erdogan.
Saudi Arabia’s Center for International Communication said on Saturday that “state official officials have not imposed any restrictions on Turkish goods, and have not seen any significant decline in bilateral trade between the state and Turkey.”
Saudi Arabia’s customs department did not respond to phone calls or WhatsApp messages.
On Thursday, Turkish products were still available in Saudi, including perishable items such as dairy and deli meats. Many Saudi merchants refused to face a ban on Turkish imports, although some said they had faced significant customs delays while bringing goods to or from transit through Turkey. The recession is at least until 2019, he said, speaking anonymously due to the subject’s political sensitivity.
Regional flashpoint
Other Saudi firms said it was their usual business.
“We have been hearing this rumor for three years and nothing like this happened,” said Ahmed Saeed, an employee of Chakra, a Turkish-made furniture-selling store in Riyadh. “We received a shipment last week and all our shipments are on track.”
Erdogan’s support of former Egyptian President Muhammad Mursi and other Muslim Brotherhood-inspired movements throughout the region prompted Saudi Arabia, the United Arab Emirates, and Egypt to align themselves to the anti-Turkish faction. This leaves the ongoing feud between Riyadh and Ankara at the opposite end of the conflict in Libya, as well as a four-nation Arab alliance featuring Qatar and Saudi Arabia.
Istanbul-based Keita Logistics chief executive Emre Aldner said business tensions escalated after Khashogi’s murder.
“The export outlook has deteriorated in the last few months,” he said. “What’s in place is a systematic policy of intimidation against Turkish companies.”
Kita had an office in Saudi Arabia, and Aldner says the business was good for a few years. “After the murder, they refused to renew our license, so we had to close the office,” he said.
Kita currently has routes to Saudi Arabia. “We’ll see how it goes,” Aldner said.
Chairman of the Saudi Chambers, Azlan Alajlan, tweeted on Saturday, “In response to Turkey’s continued hostility, goods, investment and tourism – in response to Turkey’s continued hostility, boycott of everything – goods, investment and tourism – all of Saudi Is responsible for. towards Our leadership, country and citizens. ”
– With the help of Christian Wynberg, Selkan Hakoglu and Reema Al Othman
(Please update with Saudi comments.)
.