The boycott against Israeli products will first and foremost hurt the Palestinian Authority’s economy and residents.
Trade between Israel and the Palestinian Authority (PA) prior to the outbreak of violence in the territories is estimated at $2.2 billion, Federation of Israeli Chambers of Commerce director general Yossi Shostak said today. He made his comments following media reports that PA residents are preparing to boycott Israeli products as of tomorrow.
Federation of Israeli Chambers of Commerce figures indicate that trade has fallen 35% since violence broke out in October 1999. Shostak said that the Palestinian economy is highly dependent on the Israeli economy and that a third of Palestinian GDP comes from Palestinian labor in Israel. Another third comes from the remittance of taxes on goods passing through Israeli ports.
The figures further show that Israel’s imports from the PA, consisting mainly of agricultural products, amount to $500 million a year, which is in fact the bulk of the PA’s exports. Israel’s exports to the PA consist mainly of basis food products, milk products and agricultural produce. Shostak assessed that the boycott against Israeli products will first and foremost hurt the Palestinian Authority’s economy and residents. He said that the Ministry of Finance must immediately discontinue money transfers to the PA if it does not prevent the boycott.
Published by Israel's Business Arena on 31 January, 2001