Israeli sales to the Palestinian Authority will increase by 5 percent in 2007 and are slated to total USD 2.2 billion, according to Manufacturers' Association President Shraga Brosh said ahead of the fourth meeting of the Ankara Forum to be held Monday in Tel Aviv.
Representatives from the Israeli, Turkish, and PA industrial sectors are members of the Ankara Forum; 13 Palestinian businessmen and representatives of the industrial and commercial offices in Gaza, Ramallah, Qalqilya, Bethlehem, Hebron, Nablus, and Tulkarm are expected to participate.
The Turkish contingent will be respresented by 12 businessmen and members of the Union of Chambers and Commodity Exchanges of Turkey (TOBB).
Brosh noted that the advancement of the Turkish initiative to establish an international company that will manage the Erez Industrial Park together with the Palestinians. This will require a multi-million dollar investment. The Turkish contingent is slated to be the main stockholder in the company.
According to the Turkish proposal, the international company will lease the Erez industrial zone from the Palestinian Authority for 99 years. The company will also be responsible for infrastructure such as electricity, natural gas, water, security, and waste collection. Israel will provide these infrastructures until the Palestinians have the capability to provide them on their own in another 15 years or so.
The international company will make money through selling infrastructures, charging monthly rent for the buildings and land on the site, and payments from other services.
Plan for an industrial free zone
According to the proposal, Erez Industrial Park will be an industrial free zone that will focus on exporting to Third World countries. The international development company won't have to pay taxes, making companies in the industrial zone tax- and custom- exempt.
Likewise, the PA also won't collect taxes from the Palestinian workers employed in the Erez Industrial Park.
Additionally, direct export of goods from the industrial park to Ashdod Port will be made possible, and goods leaving there won't be taxed by the Israeli authorities.
Brosh estimates that the plan will bring about 100 factories under foreign ownership or in conjunction with the Palestinians to Erez Industrial Park. These companies are expected to employ 5,000 Palestinian workers. The factories will most likely deal in textiles, metals, furniture, carpentry, foodstuffs, and plastics.