Israeli media confirmed that the potential for improving relations between Israel and Egypt remains distant; nevertheless, Tel Aviv is seeking to make Cairo a commercial alternative to Turkey. The Israeli news site "nziv" reported that during a Knesset meeting last week focused on trade with Turkey, Foreign Minister Katz was asked about the strategic alternatives available to him, to which he replied there are five strategic alternatives: "Egypt, China, Greece, Russia, and India."
The site explained that Katz's mention of Egypt as a strategic alternative is significant. Analyzing the alternatives Katz provided, the Israeli site noted: "China is not an alternative. Although Israel has strong trade relations with China to this day and buys everything from there, the problem with China is its distance, and shipping routes from the East are threatened by the Houthis."
It added: "Trade between Israel and Turkey thrived mainly due to geographic proximity and short shipping routes, and was often complementary to trade with China." It continued: "Russia is not an alternative either, as there is a diplomatic perspective; it would upset the Americans and public opinion, and that won't happen."
Regarding India, the site stated: "It is the same story as China: to this day they bring what they want from there, but the issue is distance and the Houthis." The site noted: "Greece was supposed to be the classic alternative since it is close, just like Turkey, but it is a member of the European Union, with all the costs associated with production in the Western world, and it is not an industrial country that can replace Turkey in terms of labor costs and the ability to sustain a developed industry."
It added: "We are left with Egypt... On the one hand, there is a noticeable deterioration in relations between the two countries, Egyptian social media incites against Israel, and the Egyptian army agrees to deployment plans in Sinai that Israel considers a threat. On the other hand, security coordination with Egypt has proven successful through extremely tough tests, the first being the accidental killing of an Egyptian soldier by the Israeli army, the occupation of the Philadelphi Corridor, and the swap deal that took place. Egypt has paid a heavy price in the Arab world for its cooperation with Israel, but perhaps this is an investment in reality."
The report continued: "Egypt is in urgent need of a new economic boost, and Israel needs a new industrial country with cheap labor and short shipping distances to replace Turkey, while Americans need some sort of achievement before Biden's election." It concluded: "This is not an unattainable achievement; after all, there is already a peace agreement and diplomatic relations between the two countries; we just need trade agreements and a decision from Egypt to normalize trade."
Turkey has officially announced the termination of all trade relations with Israel, stressing that it will not be reversed until it is ensured that humanitarian aid supplies to the sector will not be interrupted.
