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Israel–Turkey relations were formalized in March 1949 when Turkey became the first Muslim majority country (before Iran in 1950) to recognize the State of Israel. Since then, Israel has been a major supplier of arms to Turkey
On January 1, 2000, Israel and Turkey signed a free-trade agreement. named the "Turkish Israeli free trade agreement" making it the first Muslim country to sign such as an agreement with the Jewish state. Israel exports an annual $1.5 billion in goods and services to Turkey, and imports more than $1 billion. There is a plan to build a massive pipeline from Turkey to supply water, electricity, gas and oil to Israel.
The strong relationship between Turkey and Israel has angered the Arabs. Turkey has attempted to maintain an image of neutrality on the topic of various Arab issues such as the Palestianian-Israeli conflict and Lebanon. The Israeli Mossad also played a role in arresting the PKK leader, Abdullah Ocalan.
Modernization of Turkey's F-4 Phantoms and F-5 aircraft at a cost of $900 million.
Upgrading 170 of Turkey's M60A1 tanks for $500 million.
Popeye-I and Popeye-II missiles.
400 km (250 miles) range Delilah cruise missiles.
Popeye-II surface-to-air missiles for $150 million.
Arrow anti-ballistic-missiles. (Agreed by Israel. Approval of the United States is awaited.)
400 km (250 miles) range Delilah cruise missiles. (Negotiation)
The agreement provides exchange of pilots eight times a year; allows Israeli pilots to practice "long range flying over mountainous land" in Turkey's Konya firing range; and permits Turkish pilots to train at Israel's computerized firing range at the Nevatim airfield.(Nechmani, 1998: 24; Pipes, 1997 34)
The two navies conducted maneuvers during Operation Reliant Mermaid (the U.S. also participated) in January 1998.
Israel-Turkey relations after the Gaza war
Turkish Prime Minister Recep Tayyip Erdoğan heavily criticized Israel's conduct in the Gaza war at the 2009 World Economic Forum conference in Davos. 
On October 11 2009, relations were strained even further when Israel was barred from Anatolian Eagle military exercise in Turkey. The aerial exercise was to consist of Turkey, Israel, the United States, and Italy. However, Turkey refused to allow Israel to attend. In response, the United States pulled out of the exercise. 
Another deterioration in October 2009 was noted following the TV debut of Ayrılık (Farewell), a prime-time serial on Turkish state-sponsored television channel TRT 1 featuring fictionalized scenes of Israeli soldiers shooting Palestinian children and mistreating elderly Arabs. Israeli Foreign Minister Avigdor Lieberman criticized the program, and rebuked the Turkish Ambassador in front of assembled media. He subsequently apologized in the face of a Turkish threat to withdraw its ambassador.
In January 2010 Israeli politicians and media outlets condemned an episode of the popular Turkish soap opera, "Valley of the Wolves: Ambush," on private Star television that depicted the Israeli intelligence service Mossad spying inside Turkey and kidnapping Turkish babies. The program also showed Mossad attacking the Turkish embassy in Tel Aviv and taking the ambassador and his family hostage. On 11 January 2010 Israeli Deputy Foreign Minister Danny Ayalon summoned Turkish ambassador Ahmet Oguz Celikkol to a meeting, At the session, Celikkol was seated below Ayalon. With cameras rolling, Ayalon turned to his aide (without knowing the television crews were filming) and said, "The main thing is that you see that he is seated low and that we are high ... that there is one flag on the table (the Israeli flag) and that we are not smiling.
Gaza flotilla attack
Main article: Gaza flotilla raid
On 31 May 2010 nine Turkish activists were killed by Israeli troops in a raid on the Turkish ship Mavi Marmara, part of the "Gaza Freedom Flotilla", a convoy of six ships carrying 663 people from 37 nations, including pro-Palestinian activists, journalists, and humanitarians. After the raid, which took place in the Mediterranean Sea in international waters, the tension between the two countries dramatically mounted. Many of those on the ship were Turkish and several of the ships taking part to the demonstration had the Turkish flag. The Turkish Prime Minister Recep Tayyip Erdogan described the raid as "state terrorism". He said that Israel "has shown that it does not want peace in the region" and has "violated international law." Turkey recalled its ambassador from Israel, and summoned the Israeli ambassador to demand an explanation. During an emergency session of the Security Council, Turkey urged the UN to punish Israel for its actions. A Turkish Foreign Ministry written statement stated that "we strongly condemn these inhuman practices of Israel. This deplorable incident, which took place in open seas, and constitutes a fragrant breach in international law, may lead to irreparable consequences in our bilateral relations". On June 2, the Grand National Assembly of Turkey passed a resolution calling for ties with Israel to be reviewed, and for Israel to make a formal apology and pay compensation to victims of Israeli actions.