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Last Update: Wed., Mar. 8, 2006- Safar 7 - 15:00 GMT

Israeli Closure Catastrophic for Gaza Economy: USAID

Palestinian workers had to destroy trucks loaded with vegetables after being turned away from Karni crossing.

GAZA, March 7, 2006 (IslamOnline.net & News Agencies) – Israel's closure of the Gaza Strip's main commercial crossing has caused steep financial losses and risks an agricultural catastrophe in the impoverished area, according to a US government report.

"The extended closure of the Karni crossing has resulted in significant losses for (Palestine Economic Development) PED Co. and could prove financially catastrophic for agribusinesses in Gaza," said the US Agency for International Development (USAID) in a report obtained by Reuters on Tuesday, March 7.

Israeli occupation forces closed the crossing for 21 days from January 15 through February 5.

The terminal was closed again on February 21 after a mysterious explosion in the area and has since remained closed.

Israeli officials claimed the closure was to head off possible Palestinian attacks.

Israel has retained control of all access points for bringing goods in and out of the Gaza Strip, citing security concerns.

Losses

The terminal's closure has caused agricultural losses estimated at more than $450,000 per day, according to the report.

It added that the PEC Co., which manages the Gaza greenhouses left behind by Jewish settlers after the Israeli withdrawal from the area last September, has been losing more than $120,000 a day.

The US report warned that unless the Karni crossing is reopened, about 100 tones of produce could be destroyed per day in the coming weeks.

Last week alone, 58 trucks loaded with 450 tones of tomatoes, cucumbers, sweet peppers and other produce were turned away from Karni because of the Israeli closure of the crossing.

The contents were later destroyed along with more than 600,000 carnations and another 70 tones of newly harvested products.

A Gaza border deal brokered by US Secretary of State Condoleezza Rice was supposed to pave the way for Gaza to sharply increase its agricultural exports.

Greenhouses occupy 56 kilometers of the Gaza Strip, which also has 12 wells.

The greenhouses were bought from the departing Jewish settlers by private foreign donors for about $13 million.

Run-out

Last week, the United Nations warned stocks of wheat, sugar and cooking oil were likely to run out within days unless Israeli reopened the Karni crossing.

Mustafa Shurrab, general manager of the Palestine Flour Mills Co., said all the mills in Gaza were threatened with closure because they have run out of wheat.

Gaza hoped to win billions of dollars in foreign investment to turn the impoverished territory of 1.4 million people into a thriving model for the future Palestinian state.

A recent report by the UN Special Coordinator (UNSCO) blamed Israel's separation wall and its network of checkpoints and roadblocks across the occupied West Bank for a "de-development" of the Palestinian economy.

In June 2004, Palestinian businessmen accused Israel of attempting to paralyze the already-shattered Palestinian economy by closing the main commercial crossing into the Strip.

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