The Free Trade Agreement (FTA) between the Republic of Turkey and the State of Israel was signed on the 14 March 1996 in Jerusalem and entered into force on the 1 May 1997.

With Turkey-Israel FTA, tariffs and non-tariff barriers were eliminated in trade between the Parties. The Agreement also covers numerous trade related areas such as the sanitary and phytosanitary measures, internal taxation, balance of payments, public procurement, state aids, intellectual property rights, anti-dumping, safeguard measures and rules of origin.

Concerning the industrial products, all customs duties and charges having equivalent effect have been abolished as of 1 January 2000.

For the agricultural products (Protocol A, Annex I to Protocol A and Annex II to Protocol A), Turkey and Israel granted each other unlimited tariff elimination or reduction and/or tariff reduction or elimination in the form of tariff quotas for some agricultural products originating in the other Party. Furthermore, in 2006 and in 2007 both Parties revised the list of agricultural products that are granted preferential treatment under the original Agreement.

The products that will benefit from the preferential tariffs should fulfill the rules of origin set out in Protocol B of the Agreement.

The trade volume between Turkey and Israel was realized as  4.913 Million US $ in 2017 with an increase of 12% compared to 2016. In 2017, imports from Israel were 1.505 Million US $, whereas exports to Israel was 3.407 Million US $.