Mind the Tech London 2024“BDS and boycotts have changed Israel’s global trade landscape”
Mind the Tech London 2024
“BDS and boycotts have changed Israel’s global trade landscape”
Avi Balashnikov, Chairman of The Israel Export Institute, explains how Israeli companies are pivoting to find new trading partners.
The Israel Export Institute is facing unprecedented challenges, including economic boycotts and the daily struggle to maintain international market share. "We assist exporters who previously marketed to Turkey in finding new markets in the nearby region, particularly in the Middle East, Europe, and Eastern Europe," says Avi Balashnikov, Chairman of The Israel Export Institute, in an interview with CTech as part of the Mind the Tech London 2024 conference hosted by Calcalist and Bank Leumi. "This assistance includes substantial subsidies to help exporters showcase their products at exhibitions, delegations, and events abroad."
"There is no doubt that the unfortunate events of October 7 hit the country hard, and we are part of that impact," admits Balashnikov. "In the field of exports, Israeli goods have suffered a heavy blow. Some sectors were affected more than others, but overall, international business dealings with Israel have deteriorated. At the Export Institute, we fight every day, hour by hour, for Israeli industry abroad. Economic boycotts and BDS organizations present major challenges, and in some countries, we are forced to operate under the radar."
How has the boycott imposed by Turkey affected Israeli exports?
"Turkey's trade boycott, led by President Erdogan, effectively shut down Israeli industry’s access in a single day," explains Balashnikov. "Many Israeli companies had maintained excellent trade relations with Turkey for years, but the ruler, unlike the kind Turkish people, chose to take an extreme stance and close the door on Israeli industry."
In response to the Turkish boycott, the government decided to renew support for exporters. "Economy Minister Nir Barkat allocated NIS 5 million for the 'New Markets' program. We subsidize exhibitions, delegations, and events abroad to enable exporters to open new markets in the Middle East, Europe, and Eastern Europe."
Balashnikov, appointed chairman of the institute at the beginning of 2024, also serves as the Chairman of the College of Management Academic Studies and the representative of the American businessman Ronald Lauder in Israel. He has a rich history as Director General of the Ministry of Communications and Deputy Director of the Export Institute. The institute, which functions as the government's executive arm for foreign trade, was established in cooperation with the Ministry of Economy and Industry and the Manufacturers' Association.
Factories in the Galilee and Negev, which continue to operate despite the severe effects of the war, are particularly facing challenges. "Over 150 exporters and factories are suffering from the situation," notes Balashnikov. "Together with the Export Institute, they are targeting new markets. It’s a challenging task, but the Export Institute and the Ministry of Economy are doing commendable and effective work in finding new opportunities, with hopes for better days ahead."
