Palestine IT Sector Unable to Import Goods

   Despite Paris Economic Protocol

 Ramallah, Feb. 20, 2002- In defiance of International Trade agreements and the Paris Economic Protocol agreement signed between the Palestinian National Authority and Israel, Israeli authorities are inhibiting Palestinian IT companies from importing networking and communication products by detaining them at Israeli ports.

 While there is no restriction on the importation of mobile phones or networking and communication equipment, Israeli authorities cite the lack of authorization from military authorities as justification for their actions and continue to deny authorization even after the companies apply as required.

 The detainment of products imported from companies like Hewlett Packard, 3Com, Siemens and Cisco result in losses to both the exporting and importing companies and forces Palestinian companies to buy equipment from the Israeli market. This reality is causing speculation regarding the political motives behind the Israeli strategy.

 "We have reached a dead-end in our inventory levels," said Ibrahim Barham, Palestinian IT Association Chairman and Managing Director of Safad Engineering and Electronics Ltd.  "There is no security issue involved at all because these same exact products are available in the Israeli market and there is no restriction on their purchase by Palestinians from Israeli suppliers."

 The ban on importing networking and telecommunication products began approximately three months ago and targets all private companies.  Not only are companies unable to release products seized by Israel, but there is also a delay in importing any new equipment because Israel now requires companies to apply for additional certificate authorizing each individual product to be imported. Previously companies applied for only one blanket certificate authorizing shipments each year.

 Companies have requested written statements by the Israeli government explaining the new policy, however none have been forthcoming.

 PITA is also facing complications stemming from the Israeli blockade of Ramallah, which prevents the Association's employees from going to work due to the presence of Israeli tanks and soldiers in and around the building housing their offices.

 "This caused unnecessary loss of donor money which meant to help the Palestinian IT industry," said Mashhour Abudaka, Executive Director of PITA, citing the inability of his employees to access important files and materials left at their office.

 PITA which is funded by membership fees as well as donor funds such as USAID and UNDP, has suffered severe financial losses as a result of blockading of the office.

 PITA attempted to obtain permission from the District Coordinating Office, the Palestinian-Israeli liaison office, to gain entry in to the building, however they were denied by Israel.

The companies suffering as a result of Israel's new policies are doing their best to release their seized equipment.  They are also lobbying the US Embassy and the USAID office in Tel Aviv, with no success thus far in solving the problem.

"These restrictions destroy the business infrastructure for importing and supporting the needs of high tech equipment in Palestine, which was slowly being built after the establishment of Palestinian National Authority," said Tareq Ma'ayah, CEO, Siemens? ICT, "It takes us back to the days of the full occupation when we were reliant on the Israelis for all communication equipment."