Last update - 00:00 05/04/2007
Israel, PA agree to open trade passages to Gaza Strip
By Avi Issacharoff, Haaretz Correspondent and Haaretz Service
Israel and the Palestinian Authority have agreed on opening trade passages to the Gaza Strip.
A terminal for imports to Gaza will operate via the Kerem Shalom Crossing. Palestinians will be able to import and export goods from Egypt and other countries via the Rafah Crossing alone.
The plan, which is supported by the international community, is pending the approval of Prime Minister Ehud Olmert and Defense Minister Amir Peretz.
A special trade terminal for the Gaza Strip has recently been prepared at the Erez Crossing in the northern end. This terminal would enable the passage of a small quantity of goods (60-80 trucks a day) to the Strip.
The Defense Ministry is preparing to renovate the entrance area to the Strip on the Palestinian side of Erez, as part of the preparations for setting up a Turkish-controled industrial zone near the crossing, between Israel and Gaza.
The plan was initiated during the Second Lebanon War by Peretz's political aide, Hagai Alon. It was completed by an inter-ministerial team headed by Amos Gilad, head of foreign policy and security in the Defense Ministry, in an attempt to solve Gaza's economic straits caused by the obstructions in the Karni passage.
The passages will be operated by the Airport Authority.
The PA said it would privatize the border passages but leave the security and supervision of customs officials in the hands of PA Chairman Mahmoud Abbas' Presidential Guard.
Peretz has agreed to the plan in principle but has yet to issue his final approval.
Meanwhile, however, some problems have emerged that could delay the plan's implementation. According to the plan, Palestinian customs officials are to charge customs and VAT at the new passage located on Israeli territory that borders Egypt.
However, following the formation of the Palestinian unity government, Israel demanded that the responsibility for the Palestinian customs authority be transferred from the Palestinian finance ministry to the President's Office.
Head of the negotiations team Saeb Erekat presented the Israelis with several letters from Abbas confirming the transfer of the authorities over the customs to his office. Erekat also produced confirmation of opening a bank account, into which funds collected at the passage will be deposited.
Olmert and Peretz must now decide whether to sign the new customs protocol.
Another problem is that of exporting goods from Gaza. According to the agreement, the Rafah Crossing would open for export if the present passage operates effectively for about a year. However, Israel is yet to approve the agreement to open the passage to export. This approval is likely delayed due to security considerations.
"I see no reason for Israel not to agree to open the Rafah Crossing to export," Erekat told Haaretz. "The financial issue has been settled and now we must proceed with the plan rapidly."