Erdogan needs a reset with the United States, but Congress could stand in the way

Turkish President Tayyip Erdogan meets with Ismail Haniyeh, leader of the Palestinian Islamist group Hamas, in Istanbul, Turkey, April 20, 2024. [Murat Cetinmuhurdar/Turkish Presidential Press Office/Handout via Reuters]

Turkey is attempting the impossible by trying to reestablish a productive relationship with the United States while declaring its full support for Hamas, and Congress may be preparing to retaliate. After suffering his biggest electoral defeat on March 31, Turkey's Recep Tayyip Erdogan is trying to rebuild his image among Turkish voters. His first measure establishing trade restrictions against Israel. His second decision was to let a flotilla, made up of Hamas-linked charities, sail to Gaza in the hope of eliciting a military response from Israel. To top it off, there will be a meeting planned between Erdogan and Hamas leader Ismail Haniyeh in Istanbul. As Erdogan explained, Turkey is a country that strongly supports Hamas.

Congress should not be shocked by Erdogan's affinity with a terrorist group that massacred 1,200 Israelis on October 7. Since 2011, the Turkish government has positioned itself as Hamas's primary patron and provided it with material support, including offices and passports to its senior leaders. , ways to raise funds and recruit. All of this is based on Erdogan's personal belief that Hamas is a resistance movement comparable to Atatürk's Turkish revolutionary forces, which are fighting to liberate the Palestinians. It also reflects Erdogan's worldview, dominated by political Islam in the tradition of the Muslim Brotherhood – a cause he has championed for decades.

Even though Erdogan's anti-Israel stance is ironclad, his actions show that he is not always willing to sacrifice his financial interests in the name of the cause. After the start of the war in Gaza, Erdogan called for a boycott of Israel to punish it for committing genocide against the Palestinians. Even though citizens were discouraged from supporting pro-Israeli businesses, Turkish companies, including the one owned by his son, continued to trade with Israel. This misleading position angered Turks and may have cost Erdogan the local elections. Bowing to public pressure, Erdogan announced trade restrictions against Israel on 54 products, including aluminum, fertilizers and jet fuel.

The move has raised alarms in Congress and prompted a number of senators and congressmen to consider a meaningful response to what appears to be a next generation boycott of Israel by the Arab League. Although Turkey has taken these steps, it is not difficult to imagine other countries, opposed to Israel's conduct of the war in Gaza, imposing similar trade embargoes.

Congress and the White House can and should obstruct this effort, using long-standing laws and authorizations to punish Turkey for these politically motivated boycotts and deter other countries from taking similar actions. The United States can begin to invoke restrictions using its anti-boycott laws administered through the Export Administration Act. These laws prohibit companies from refusing to do business with Israel, from companies providing information about their business dealings with Israel, and from implementing letters of credit that include prohibited boycott terms. The Commerce Ministry can invoke these laws and send notices to Turkish companies and financial institutions that fail to honor their contracts with Israeli companies. The Treasury Department and Internal Revenue Service could also deny foreign tax benefits to companies engaged in boycott activities.

Congress could also punish Turkey using the terms of the Countering America's Adversaries Through Sanctions Act (CAATSA). The law authorizes the application of sanctions against anyone involved in the Russian defense or intelligence sector. Turkey, thanks to its purchase of major weapons systems from Russia, is certainly eligible. The White House could also use the powers of Executive Orders 13661 and 13662 to target Turkish individuals linked to Russia. The United States has already taken limited action against Turkish companies for circumventing Russia-related sanctions and could extend to broader parts of the Turkish economy. To the extent that Turkish maritime and port entities engage in sanctions evasion, on behalf of Russia, these entities could also be targeted by existing authorities.

Regarding Ismail Haniyeh's visit to Turkey, the United States may impose additional sanctions on any entity that provides services to him, because as a designated entity and head of the Hamas political bureau, he has been subject to restrictions since 2018. Turkish airport services, means of transportation and anyone facilitating travel to and from Turkey risks having their assets frozen by OFAC.

The White House is also expected to start getting tougher on Turkey over drone parts and supplies sold to Iran. Iranian drones were a significant part of the air attack that took place against Israel on April 13. The Treasury's Office of Foreign Assets Control (OFAC) has sanctioned Turkish companies linked to Iran's drone program. The drone program, which supports Russia in its war against Ukraine, appears to be incentivizing Turkey to sell its drone technology to both sides of the conflict. Congress could call for additional sanctions against Turkey based on this drone supply chain, which also appears to benefit Iran's IRGC.

Finally, the United States should also use its counterterrorism authorities to target Turkish ships, as well as the insurance and communications companies that provide services to these ships, which are part of the so-called Freedom Flotilla, which intends to sail to Gaza this month. The main organizer, the Humanitarian Relief Foundation (IHH), has ties to Hamas and the Muslim Brotherhood and, therefore, could be targeted due to its association with a US-designated terrorist entity.

The intentions of the IHH are far from benevolent. Rather than providing aid to Gazans through aid channels established and overseen by the United States and Israel, the flotilla says it will deliver aid directly to Gaza. This would mean a violation of the maritime aid corridor established by the United States and Israel. This also means that ships, without being subject to inspection, could carry illicit goods such as weapons and other dual-use materials. The IHH previously attempted such a feat in 2010, which led to a military altercation with the Israeli navy.

As a NATO ally, Turkey has responsibilities that go beyond Erdogan's core beliefs, reinforced by frequent outbursts. Boycotting Israel and virulent support for Hamas only limit Erdogan's opportunities to build better relations with the United States. Congress views these moves as provocative and will act to retaliate if necessary. There is a responsibility for regional security, a responsibility to combat illicit financing and sanctions evasion, and the benefits of a close defense relationship with the United States. If Erdogan wants to reset his relationship with the West, he must end his support for a terrorist organization with so much blood on its hands, both American and Israeli.

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Sinan Ciddi is a non-resident senior fellow at the Foundation for Defense of Democracies (FDD). Tyler Stapleton is Director of Congressional Relations at FDD Action. They both contribute to the Center on Economic and Financial Power (CEFP) and the Center on Political and Military Power (CMPP) of the FDD.