World Bank urges opening Gaza border for trade

Jerusalem, Mar 26: A World Bank report released today called for the opening of the Rafah crossing between the Gaza Strip and Egypt to exports and imports to try to stem the Palestinian territory's economic collapse.

Israel says the Gaza-Egypt border is a major transit point for militants and weapons. It has frequently closed Rafah, which currently serves as a crossing for people, for security reasons.

Virtually all trade with Gaza is restricted to the Karni crossing with Israel. Limited operating hours at Karni and Israel's frequent closure of the crossing have reduced the flow of goods and driven up prices.

Palestinian exports have plummeted to their lowest levels since 1994 because of the Karni closures and a year-old Western ban on direct aid to the Hamas-led government, the World Bank report said. The value of Palestinian exports in 2006 was nearly 30 per cent below the level 10 years ago.

Under the World Bank proposal, Rafah could be quickly expanded to handle Palestinian exports and eventually imports.

Egyptian sea ports and airports plus the Suez Canal would be used to move goods in and out.

The report said European monitors at Rafah were prepared to oversee the movement of goods.

The World Bank said increased trade was the key to reviving the Palestinian economy. Trade accounts for about 85 per cent to 90 percent of the Palestinian gross domestic product.

Reuters