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September 2006                                                                                                                                        Issue 2 Volume 1

 

 

 

 

Special points of interest

 PSC is now officially registered wih PNA as a Non-Governmental Organization.

A number of outreach and capacity building workshops were held.

PSC has established strategic partnerships with several institutions.

 

 

Inside this issue

Message from the  PSC     Chairwoman

Message from the EU

Achievements

Outreach

Capacity building

Key issues raised by members

Work in progress

Palestinian trade facilitation efforts

PSC staff

 

 

Work in progress

    PSC is currently working on delivering:

1.    Workshops and study tours to enhance the technical capacity of PSC staff and familiarise PSC members and the shippers’ community with the different aspects of trade facilitation and the role of the PSC therein.

2.   Memoranda of Understanding (MOUs) and agreements with relevant private sector institutions to obtain competitive shipping rates and favourable conditions for Palestinian shippers.

3.   An information and dissemination network on port and border crossing regulations, activity, charges and conditions for PSC members.

4.   A database on customs tariff duties and regulations will be integrated into the PSC information and dissemination network.

5.   Efforts to extend public outreach and establish practical and operational channels for representing Palestinian shippers’ interests at national and international levels. 

Palestinian trade facilitation efforts

The devastating impact of the Israeli closure policy and mobility restrictions on the Palestinian economy cannot be over-emphasised. In looking at trade facilitation efforts one should bear in mind that:

 §    the Palestinian market is a main market for Israeli companies;

§    the share of trade deficit with Israel, in total Palestinian trade deficit increased from 67 % in 2002  to 72 % in 2005;

§    the textiles sector among the sectors that were hard hit;

§    the closing of the Al Montar (Karni) Crossing means that merchandise worth tens of millions of shekels is stuck in the Gaza Strip; and

§  thousands of Palestinian families  are losing their livelihood.

Yet another major consequence of the Israeli policy is shortages in food supplies. This is particularly the case of Gaza, which requires 450 million tons (MT) of wheat per day to maintain bread supplies. The usual 30-60 day wheat stock kept in Gaza is exhausted. Other basic food commodities are in extremely short supply, including dairy products and fruit. Rice and sugar are selling at more than twice their normal price and are also very difficult to find in stores.

Al Montar (Karni) crossing is the only source to import large-scale quantities of wheat and the commercial terminal for imports and exports of goods from Israel. As of today, the crossing has been closed for more than 70% of this year. In comparison, in 2005, it was closed for a total of 18% of the year and 19% of the year in 2004.

Israeli textile companies have also raised concern over the closing of Al Montar (Karni). They state seasonal merchandise (valued at approximately 50 million shekels) contracted to 20 Gazan sewing factories, is stuck at the crossing. Unable to meet contract requirements in Israel and abroad, the fate of the Palestinian enterprises is bleak.

According to Israeli sources, “Kerem Shalom” a commercial crossing in the southern tip of Gaza has opened  as an alternative point of access for imported commercial goods and export products. This crossing point has only a fraction of the capacity of the Al Montar (Karni) and is not at all equipped to handle the approximately 450 MT of wheat needed in Gaza.

The Palestinian Authority has so far refused the offer to use this crossing point, citing its wider political concerns. Meanwhile, the Palestinian-Israeli Agreement on Movement and Access (AMA) is yet to be implemented.

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