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Case Studies photograph

Barriers to trade in the Occupied Palestinian Territories: A Farmer's Tale

28 August 2007

The separation barrier outside JerusalemFor Palestinians living in the West Bank and Gaza, checkpoints and roadblocks are a way of life. Although the physical distances involved may be small, the movement of people and goods within these territories is often slow and expensive.

Put in place by the external linkIsraeli Government, who cite concern for security, these restrictions are having a devastating effect on the Palestinian economy, with limited access to markets making trade all but impossible. DFID’s programme in the Occupied Palestinian Territories (OPTs) aims to support its fragile economy, while working with partners to help end the conflict and create a viable Palestinian state. But at present, many people hoping to make a living face a major struggle.


Checkpoints cause costly delays


Sixty-year-old Sami Awad Abdelhafez Ali is a tomato farmer from the village of Beit Amin in the north of the West Bank. For Sami, as for the other farmers in the village, the main market for selling produce is the large city of Nablus, located a few hours away. To make a good profit, it is important that Sami can get his crops to Nablus without much trouble. However, owing to the movement and access restrictions, a checkpoint separates him from his greenhouse. And although Sami is lucky that usually there are no delays, the checkpoint doesn't open until six in the morning.

"This is a huge complication," he says. "The most important buyers are in the market very early. It takes two hours to travel there and by the time I arrive, they have left." Generally, Sami has to let his tomatoes go for around half the normal market price.

Despite an Agreement on Movement and Access adobe pdf(91 kb) that was approved by both Israelis and Palestinians in 2005, constraints on movement are as present as ever. Indeed, according to the external linkUnited Nations, physical blocks in the West Bank have actually increased by 43% since then. And, in Gaza, air and seaports remain closed, defying the agreement and prolonging Gaza's isolation from international trade. Transporting a container the 36 miles from Gaza to the West Bank is now as expensive as shipping it to China.

Whether Palestinians want to sell to a domestic market, like Sami, or to foreign buyers, restrictions are preventing commercial activity from taking place, and the Palestinian economy is feeling the effects.

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Freedom of movement vital to growth

A checkpoint at the entrance to BethlehemUnless movement and access are improved, Palestinians will not be able to develop economically, and peace will be harder to achieve. With over 500 obstacles currently in place throughout the West Bank, and a further 200 "flying" checkpoints operated by the Israeli army at shifting locations, there is also a social cost to consider. Access to schools and medical services is far from straightforward, and families can find it tough to negotiate travel difficulties and stay together. And administrative restrictions, such as permits for gaining entry to some locations, are just as disruptive as physical ones.

In addition to DFID financial support to the Palestinian economy, the UK continues to raise its concerns with the Israeli Government about the barriers to movement and access. A May 2007 external linkWorld Bank report, funded by DFID, concluded that, for West Bank Palestinians, freedom of movement and access is the exception rather than the norm. It questioned whether such constraints were solely a security measure, or whether they also served to protect and expand Israeli settlements in the area. A reassessment of the restrictions would be needed if the OPTs were to see economic recovery, and people like Sami were to have the chance to earn a decent living.

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Key Facts

  • On 18 July 2007 the Secretary of State for International Development, Douglas Alexander, announced a contribution of £3 million to the Palestinian Authority to help it pay off its debts to the private sector. He said: "Helping the Palestinian Authority to pay its debts increases Palestinian companies’ ability to continue trading, and so to invest and employ more people. This will boost the economy, and demonstrates our clear support for the new Government.”
  • Based on the understanding that the best prospect for lasting improvement in the OPTs is through the peace process, DFID's £31.6 million programme is focused on working with partners to help end the conflict and create a viable Palestinian state.
  • As part of DFID's programme this year, the UK is funding work to generate media awareness of movement and access restrictions and to petition the Israeli High Court of Justice on movement and access issues.

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Links

Note: This Case Study appears courtesy of the external linkInternational Committee of the Red Cross.

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