GAZA FARMERS HOLD OUT HOPE FOR EXPORTS TO EUROPE

C O N F I D E N T I A L JERUSALEM 002186

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
GOLDBERGER/HOLMSTROM/LENTZ; PRM FOR PRM/ANE; NSC FOR
PASCUAL; PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN

E.O. 12958: DECL: 12/02/2013
TAGS: ECON EAID EAGR ETRD PREL KWBG IS
SUBJECT: GAZA FARMERS HOLD OUT HOPE FOR EXPORTS TO EUROPE

REF: JERUSALEM 2567

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


1. (C) Despite the fact that there have been no exports from
Gaza since January, Gaza farmers are preparing produce for
export to Europe via Israel as early as December 10. USAID
contractors said that farmers could earn up to USD eight
million this year, if the GOI allows shipment out of Gaza.
The GOI permitted a limited number of shipments last season.
Office of the Quartet Representative (OQR) members told
Econoff on December 2 that Tony Blair raised this issue in
meetings with the GOI last month, urging the GOI to allow
exports this season. End summary.

USD 8 million of Gaza produce for export
--------------


2. (SBU) USAID agriculture contractors report that Gaza
farmers will begin to harvest strawberries and carnations in
early December, in hopes of exporting to European markets.
Gaza farmers could earn USD 4.5 million from strawberry
exports this season, while carnation exports could earn them
an estimated USD 2.3 million, according to USAID contractors.
(Note: During the 2007-2008 season, Gaza farmers were able
to export less than five percent of their strawberry harvest
and 20 percent of their flower harvest due to GOI export
restrictions. End note.) Gaza farmers planted half of what
they did last year to limit planting costs, fearing that the
GOI may not permit exports this season.


3. (SBU) In addition, Gaza farmers will harvest bell peppers
and tomatoes mid-December to March. If the peppers and
tomatoes are exported to European markets, Gaza farmers could
fetch USD 1.1 million this season, according to USAID
contractors. Gaza farmers were not allowed to export their
bell peppers and tomatoes during the 2007-2008 season. If
exports are not allowed or are restricted, farmers will be
forced to sell their goods in Gaza, as they did last season,
for the fraction of the export price.

Blair presses the GOI on Gaza exports
--------------


4. (C) An OQR member told Econoff on December 2 that Tony
Blair discussed Gaza agriculture exports with the GOI during
his most recent trip to the region in November. Blair
reportedly asked GOI officials to allow farmers to ship their
"grown for export" produce to European markets this season.
OQR contacts say that the GOI has not signaled whether it
will allow the exports.
WALLES