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[Boycott - Economy and Trade News]

Comment:

One of the ways the US is strengthening Israels position in the Middle-East is to ensure the Arab countries surrounding it become client states of Israel whereby their economic success or faliure is dependent on Israel. If the Israei economy is hit, then the client states also suffer - their survival is pinned upon Israels survival.

In 1996 the US set up the Qualified Industrial Zone (QIZ) Agreement whereby any Jordanian or Egyptian company willing to collaborate with Israel would be rewarded. Basically if an Egyptian or Jordanian company sourced its production materials (at least 11.7%) from Israel and are produced in specific QIZ industrial zones then they would be treated as Israeli products when entering the US market, and get to enjoy the same tariff-free entry Israeli goods currently enjoy.

The QIZ agreement forces Jordanian exporters to export through the port of Israel to the USA[1], enabaling Israel to make money both in the production and export of Arab goods. This also pushes up the cost of the product and the time it takes to reach its destination.

The QIZ agreement has also enabled around 25 Israeli factories to set up in Jordan and Egypt, repackaging Israeli products as Arab and selling them to the hither unaccessable Arab market.

We need to set up boycott lists of all companies participating in QIZ - they are the hidden face of Israeli goods in Arab markets.


[1]Rana El Akhal has researched opportunities for the textile sector in Jordan for its export to USA and Europe using the Free Trade Agreement (FTA). In her study, she found that the textile sector in Jordan is losing millions of dollars worth of potential profit because it uses the Qualified Industrial Zones (QIZ) agreement instead of the FTA. The QIZ agreement obliged Jordanian exporters to export through the port of Israel to USA, which made the cost of the product higher and the time it took to reach its destination longer. On the other hand, the FTA agreement allows Jordan to export directly to USA.
http://www.lead.org.pk/mtd28

19 percent growth in export to Arab countries


Ynet (Israel)
3 December 2006

Export to Arab countries reach USD 206 million in first nine months of 2006; growth stems mainly from export to Jordan, Egypt

The growth in export to Egypt was influenced by the coming into effect of the QIZ agreements, which allow for tariff-free exporting from Egypt to the United States of products of traditional industries, subject to the acquisition of raw materials from Israel.

In the first nine months of 2006, a growth of 19 percent in Israeli export to Arab countries has been registered, compared to the same period last year. Export stood at USD 206 million, said Yehiel Asia, director-general of the Israel Export and International Cooperation Institute.

The increase in export stems mainly from a growth in export to Jordan and Egypt. During the period in question, industrial export to Egypt

grew by 32 percent and amounted to USD 92 million. The principle exports are textile, clothing and leather, chemicals and oil distillation by-products.

The growth in export to Egypt was influenced by the coming into effect of the QIZ agreements, which allow for tariff-free exporting from Egypt to the United States of products of traditional industries, subject to the acquisition of raw materials from Israel.

The Export Institute reported that in 2005, the number of Israeli exporters operating in Egypt grew by 100 percent, and currently stands at 257.

The industrial export to Jordan rose by 12.5 percent in the first nine months of the year, and totaled USD 96 million. The majority of exports are wood, furniture, printing paper, and textile. More than 1,300 Israeli exporters operate in Jordan nowadays, a 25 percent decrease in comparison to 2004.

The report further revealed that 27 Israeli exporters currently export to Iraq, mainly to the American army (telecommunication equipment and raw metals). Export to Iraq amounted to USD 2.6 million in the first nine months of 2006, a drop of 29 percent compared to the same period last year.

According to the report, export to Morocco decreased by 16 percent, totaling USD 8.4 million. Export to Tunisia dropped by 10 percent and totaled USD 1.5 million.

Source: http://www.ynetnews.com/articles/0,7340,L-3335306,00.html


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