USG-FUNDED PHARMACEUTICALS BLOCKED FROM ENTERING

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000358 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/STEINGER; PRM FOR PDAS GREENE AND PRM/ANE; NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER; PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN E.O. 12958: DECL: 02/21/16 TAGS: EAID PHUM ETRD ECON PGOV KWBG IS SUBJECT: USG-FUNDED PHARMACEUTICALS BLOCKED FROM ENTERING EAST JERUSALEM Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d) ¶1. (SBU) Summary: In recent weeks, the GOI has been more aggressive in efforts to stop the flow of Palestinian-produced pharmaceuticals to East Jerusalem pharmacies and hospitals, according to ConGen contacts. Israeli Ministry of HEALTH inspectors have stepped up warnings and inspections of pharmacies. Shipments are being turned back at checkpoints, including USAID-funded pharmaceuticals and medical supplies destined for Augusta Victoria and al-Makassed Hospitals. End summary. -------------- USAID-funded Phamaceuticals Blocked -------------- ¶2. (C) Elizabeth Sime, Country Director for CARE, advised EconChief February 15 that CARE had been delivering Palestinian-produced pharmaceuticals to East Jerusalem hospitals without incident since June 2006, but two weeks ago, a USAID-funded shipment destined for Augusta Victoria and al-Makassed Hospitalw was turned back at the Israeli cargo terminal Beitunia, outside of Ramallah. The reason given was that Israeli law prohibits the importation of Palestinian-produced pharmaceuticals. In two follow-up meetings on the subject, IDF officials repeated the same point to CARE staff and noted that completion of the separation barrier had resulted in better monitoring of such shipments. (Note: The completion of sections of the separation barrier north and south of Jerusalem has greatly restricted the flow of goods into East Jerusalem. End Note.) They advised that Palestinians seeking to sell their pharmaceutical products in East Jerusalem would have to meet Israeli standards and register their products with Israel's Ministry of Health. USAID West Bank/Gaza Mission Director wrote COGAT Major-General Mishlev February 16 requesting his assistance in allowing the blocked items to reach hospitals in East Jerusalem. -------------- Just Say No to Palestinian Pharmaceuticals -------------- ¶3. (C) East Jerusalem pharmacy-owner Salman Abu Rmeleh provided to EconSpecialist on February 13 a letter that he had received in late November 2006 from the Israeli Ministry of HEALTH advising that a recent inspection of his pharmacy had revealed the presence of "drugs that are not registered on the drug list in Israel," and thus "cannot be held or sold in the pharmacy." The letter asked that Abu Rmeleh provide, by February 15, 2007, a written explanation for the presence of these drugs as well as documents required by Israeli law to be available at the pharmacy (NFI) that were not found during the course of the inspection. Mahmound Al Salaymeh, Chairman of the Pharmaceutical Union in the West Bank, told EconSpecialist February 13 that the Israeli MOH is requiring those seeking to establish new pharmacies in East Jerusalem to sign a commitment not to purchase West Bank-produced pharmaceuticals. He added that the MOH has also advised hospitals in East Jerusalem not to purchase or use Palestinian pharmaceuticals. -------------- Obstacles to Registering -------------- ¶4. (C) Bassim Khoury, Chairman of the Palestinian Federation of Industries and owner of Pharmacare, a West Bank-based pharmaceutical manufacturer, advised EconChief February 14 that the GOI has tightened measures to prevent him from selling his company's products in East Jerusalem. In the past, an Israeli inspector would call prior to inspecting ONE of Khoury's client pharmacies and ask that Palestinian products be removed from the shelves prior to his arrival. Now there are no more warning calls. Khoury said that his attempts to register his products with the MOH have been met with the response that his plant does not meet Israeli standards. He said that the Israelis have refused to send an inspector to his plant. With the assistance of the German government, Khoury has arranged for a German inspection team to visit his plant on February 22, given his joint venture with a German pharmaceutical manufacturer. If the German inspection goes well, Khoury thinks it will oblige the JERUSALEM 00000358 002 OF 002 Israelis to accept the results and register his products. -------------- Non-Tariff Barrier/Customs Envelope Violation -------------- ¶5. (C) Khoury said that Israeli law prohibits the importation of U.S. and other foreign pharmaceuticals from the West Bank into Israel. The law requires that imported pharmaceuticals must at all times be under the supervision of a pharmacist registered with the Israeli MOH. Khoury said he had established and registered a pharmaceutical distribution company in Israel. He now imports directly to this company, off-loads a small amount intended for the East Jerusalem market, and moves the rest to the West Bank. Khoury described Israeli measures directed at Palestinian products as protectionist and in violation of the spirit of the Paris Protocol and the customs envelope it established. WALLES