Report: Israel, Turkey Talking QIZ

YERUSHALAYIM -
The cruise liner Mavi Marmara is towed by a Turkish tugboat (R) as it leaves the port of the northern city of Haifa August 5, 2010. Israel released an impounded Turkish aid ship on Thursday on which its navy killed nine pro-Palestinian activists in a botched boarding as they tried to run the Gaza Strip blockade in May Photo by Herzl Shapira/Flash 90*** Maariv & Agencies OUT *** *** Local Caption *** ùçøåø îøîøä ðîì çéôä äîùè ìòæä îùè òæä ñôéðä
The cruise liner Mavi Marmara is towed by a Turkish tugboat (R.) as it leaves the port of the northern city of Haifa, Aug. 5, 2010. (Herzl Shapira/Flash 90)

As talks continue between Israel and Turkey to normalize relations, the United States is considering making its own contribution to the effort – the establishment of a QIZ (Qualified Industrial Zone) in southern Turkey, in which Israel and Turkey would jointly manufacture goods and send them on to the United States, duty free.

Reports Thursday said that Israeli and Turkish teams had in recent weeks conducted intensive talks about overcoming the last issues to restore diplomatic relations. Relations between the two countries were cut off in 2010 in the wake of the Marmara flotilla incident, in which IDF soldiers opened fire on Turks who had attacked them as they sought to break the naval blockade of Gaza. Nine Turks were killed in that incident.

On Thursday, Israel Radio reported that talks were also under way for the QIZ. Israel already has QIZ deals with Egypt and Jordan. In both cases, products manufactured in the zones that contain at least 35 percent Israeli components, input or ownership, with the balance being that of the country that hosts the QIZ, can be imported into the U.S. tax free. Both Jordan and Egypt have repeatedly expressed their satisfaction with the arrangement, as has Israel.