Ten thousand Israelis travel every weekend to Palestinian border settlements and spend NIS 10 million.
The Israeli Federation of Chambers of Commerce is acting to prevent trade between the Israeli market and the Palestinian market.
Importers claim that Israeli companies are suffering unfair competition in the Palestinian market. The Palestinian Authority (PA) encourages direct Palestinian import as an alternative to import through Israeli agents. One reason for this is the failure to return purchase tax to the PA, when the marketer is an Israeli. When the merchandise is marketed by a Palestinian in the PA area, the purchase tax is transferred to the PA.
Purchase of products from Palestinian merchants and manufacturers has risen in recent months as a substitute for products purchased from Israeli merchants and manufacturers. The main sectors affected are furniture and solar energy. According to estimates by the Government Territories Liaison Office, 10,000 Israelis have traveled to Palestinian settlements bordering Israel in recent months, spending some NIS 10 million there every weekend.
The PA constitutes the second largest Israeli export market after the US, totaling $1.7 billion per year. A large part of this export consists of the marketing of foreign products by Israelis in the PA area. Israeli imports from the Palestinian Authority amount to $600 million per year.
Published by Israel's Business Arena on January 11, 2000