BARDALA/BISAN CROSSING IS POSITIVELY IMPACTING

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000220 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR HIRSON E.O. 12958: DECL: 01/07/2017 TAGS: EAGR ETRD KWBG IS SUBJECT: BARDALA/BISAN CROSSING IS POSITIVELY IMPACTING AGRICULTURAL EXPORTS Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d). ¶1. (SBU) Summary: Palestinian farmers in the JV reported that the January 15 opening of the Bardala/Bisan agricultural crossing has allowed their fruits and vegetables to be exported to Israel within a day of being picked, resulting in higher prices for farmers. Farmers continue to experience small profit margins, though, as logistical costs for exported agricultural products have more than quadrupled since 1999. GOI import quotas and sanitary and phytosanitary regulations prevent them from reaching more markets and expanding their businesses. End summary. NO INCREASED SALES, BUT FRESHER PRODUCTS UPON ARRIVAL -------------- ¶2. (C) Palestinian farmers in the JV described the positive impact on their businesses of the opening of the Bardala/Bisan crossing into northern Israel from the Palestinian side of the Jordan Valley on January 15. Prior to Bardala/Bisan's opening, JV agricultural exports into Israel passed through the Jalameh terminal near Jenin or through Ramallah's Beituniya terminal, which are hours away via mountainous and congested roads. JV fruits and vegetables now arrive in Israel fresher than before, resulting in higher prices and more profits for farmers. The farmers stated that 20-25 truckloads of JV agriculture products are delivered daily through the Bardala/Bisan crossing, which is open Sunday to Thursday from 10 AM to 6 PM and on Fridays from 10 AM to 12 PM. The farmers noted that opening the crossing at 7 AM would be a further improvement especially as the days grow longer and warmer. They praised the lack of flying checkpoints on the main north-south highway (Route 90) leading to the crossing. HIGH TRANSPORTATION COSTS AND QUOTAS ON EXPORTS -------------- ¶3. (C) Bardala farmer Sami Abu Mansour told Econoffs that transportation costs currently represent 60 percent of consumer sales prices for JV agricultural products, in comparison to 13 percent in 1999. The middlemen transporting fruits and vegetables to Israeli wholesalers have to wait an average of two hours at Bardala/Bisan, thereby preventing multiple trips per day. The crossing's NIS 5 per pallet forklift fees associated with back-to-back unloading and loading chip away at profit margins even further, said Abu Mansour. He added that the Israelis allow only JV residents to access Bardala/Bisan, preventing other West Bank truckers from accessing the crossing and limiting competition amongst truckers. An al-Awjah farmer said that the GOI has imposed individual quotas on Palestinian agriculture, limiting the daily quantity of farmers' exports of specified fruits and vegetables. These same quotas are not in force for produce from neighboring Israeli settlement farms in the JV, he said. Meanwhile, a Jiflek farmer said a truckload of Palestinian produce brought to Bardala/Bisan cannot be delivered to more than one buyer on the Israeli side. FRUSTRATION WITH CHEMICAL TESTS -------------- ¶4. (C) Israeli authorities at Bardala/Bisan crossing test Palestinian-grown zucchini, cucumber, corn, and okra for chemicals because the GOI claims that Palestinian farmers use sewage water to irrigate crops, according to one farmer, Imad Khamhawee. He said that truckloads of JV fruits and vegetables are rejected by GOI authorities for failing the test. Khamhawee labeled the practice a non-tariff barrier to trade, and called it "ridiculous," adding that JV farmers never use sewage water to irrigate their crops. Produce from neighboring Israeli settlements in the JV is not subjected to these tests, he said. CHANGING RULES AT CHECKPOINTS -------------- ¶5. (SBU) Several farmers stated that the rules and regulations for agricultural imports change daily. The farmers wanted to see written rules in Arabic in order to understand the regulations - something not yet provided by the GOI. They said the crossings do not operate on a first-come, first-serve basis, with many truckloads made to JERUSALEM 00000220 002 OF 002 wait at the crossing for hours without explanation. ¶6. (SBU) The farmers appealed for help from USAID to establish a JV-located packing house and agricultural marketing company, which would (1) give producers more control and profitability in the export process and (2) enhance export potential to international markets. WALLES