SHUTDOWN OF JORDAN VALLEY CROSSING THREATENS WEST

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 001985

SIPDIS

NEA/IPA FOR HOLMSTROM/LENTZ; NSC FOR PASCUAL
DEPT PLEASE PASS TO USAID FOR ANE/MEA:MCCLOUD/BORODIN

E.O. 12958: DECL: 10/28/2013
TAGS: ECON EAID EAGR ETRD KWBG IS
SUBJECT: SHUTDOWN OF JORDAN VALLEY CROSSING THREATENS WEST
BANK AGRICULTURE EXPORTS

REF: 07 JERUSALEM 220

Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d)


1. (SBU) Summary: The GOI has closed the principal
commercial crossing in the northern Jordan Valley to
Palestinian agriculture exports, according to Palestinian
farmers and USG contractors. Palestinian farmers report that
the closure of Bardala/Bisan crossing will limit their access
to international markets and dramatically reduce revenues.
They claim that alternative crossings (requiring
significantly longer drives through additional West Bank
checkpoints) are not viable for most Palestinian agricultural
exports. As a result, Palestinian farmers say they will be
forced to choose between selling their goods to packing
houses run by Israeli settlers (who can use Bardala/Bisan)
and selling in internal markets. Either option fetches
significantly lower prices. End summary.

Farmers: Bardala key to harvest season
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2. (SBU) The Bardala/Bisan crossing in the northern West
Bank was closed to Palestinian agriculture exports as of
October 1, 2008, according to Palestinian farmers and USAID
contractors. These farmers report that 85 percent of
Palestinian agriculture exports from the Jordan Valley during
the 2007-2008 harvest passed through Bardala/Bisan crossing
en route to international markets (reftel). They claim the
crossing's closure will cripple this year's export potential.
(Note: The prime export season runs from November through
April, when Jordan Valley herbs, tomatoes, and sweet peppers
are exported to Europe and Russia and fetch high prices as
out-of-season produce. USAID has provided close to USD 2
million to support agricultural development in the Jordan
Valley, and a number of the farmers we spoke to are
recipients of USG funding. End Note.)

Israeli settlers benefit from closure
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3. (C) Mazen Sinokrot, who owns farmland and a recently
constructed packing house in the Jordan Valley, told Econoff
on October 30 that Palestinians will not be able to compete
with neighboring Israeli settlers if Bardala/Bisan remains
closed. Sinokrot said that Israeli settlers are still able
to export via Bardala/Bisan twenty-four hours a day. (Note:
Sinokrot estimates that the 400 dunums of farmland he planned
to support this season through his packing house would have
netted farmers and workers approximately ten million dollars
in revenue. He estimates that farmers will get 10 to 15
percent less from Israeli settler packing houses. End Note.)


4. (SBU) According to members of the Palestinian-American
Chamber of Commerce, some Jordan Valley farmers are looking
to use Jalameh or Tulkarem crossings into Israel, via the
West Bank checkpoints of Tayasir or Hamra. The trip (which
requires an additional permit for the checkpoints) adds
nearly seventy kilometers to the journey. Because of the
travel times and limited hours of operations at the
crossings, Palestinian produce will leave the West Bank a day
later than Israeli settler produce picked the same day.
USAID contractors report that the resulting reduced
shelf-life makes Palestinian fruits and vegetables less
attractive to buyers and lowers their prices. In addition,
roads from the Jordan Valley to the Jalameh and Tulkaram
crossings are poor, resulting in further reduction of product
quality and shelf life.

Produce grown for export to be sold locally
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5. (C) Jordan Valley farmer Imad Nuseibeh told Econoff on
October 28 that the Bardala/Bisan closure will force him to
sell 70 percent of his harvest locally -- in Jericho and
Nablus -- and just 30 percent to Israeli markets, where
higher prices are fetched for his potatoes, eggplants, and
cucumbers. Prior to the closure, he shipped 70 percent to
Israel. Nuseibeh said that the closure will reduce
international demand for Palestinian produce, as European and
Russian buyers move to other suppliers.

Farmers association makes a plea to Fayyad
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6. (U) The Jordan Valley farmers association sent a letter
to Prime Minister Fayyad on October 22, asking for his help

JERUSALEM 00001985 002 OF 002


to re-open the Bardala/Bisan crossing to Palestinian exports.
The association underscored the areas dependence on
agriculture exports, describing the closure as "catastrophic"
to the Jordan Valley economy, according to press reports.
WALLES