As the Islamic State (IS) continues to take swathes of territory in Iraq and Syria, to the former have plummeted but exploded to the latter, raising concerns that Turkey's exports are falling directly into the hands of the dangerous yet effective insurgent group.
Exports to Iraq--formerly Turkey's second largest export partner after Germany—fell 46 percent last month year-on-year after falling 19 percent in June. The steep decline began after IS began to make major advances in Iraq, starting with the seizure of its second largest city of Mosul. Hundreds of trucks would cross the border from Turkey into Iraq but such trade has largely dried up after IS held 32 Turkish truck drivers hostage. The truckers were eventually released. Most of Turkey's exports to Iraq went to the semi-autonomous Kurdistan Regional Government (KRG) in the north of the country.
Economy Minister Nihat Zeybekçi said earlier this month that $3 billion in exports to Iraq may be lost by year's end due to the instability and violence created by the advance of the IS, who have been targeting Iraqi Christians and Yazidis, both of whom are considered infidels by the IS.
http://www.todayszaman.com/business_turkeys-syria-exports-surge-after-is-seizure_356923.html