UNCTAD 54th Session
Tuesday, 9 October 2007
Plenary meeting,
Item 8: Technical Cooperation Activities

This session dealt with the Report on UNCTAD’s assistance to the Palestinian people.
The introduction of this report was made by Mr. Mahmoud A.T Elkhalif, Officer-in-Charge, Assistance to the Palestinian People.

There is a need to establish rules for the Palestinian trade. UNCTAD will do every thing to respect the Bangkok Plan of Action and the Sao Paolo Consensus. Actually since 1984 whereas several items have been removed, this one (Technical Cooperation Activities: assistance to the Palestinian people) has always been kept over the years. UNCTAD congratulates Italy and ILO support on Small and Medium Enterprises

Palestinian economy has become an example for countries in war. Nevertheless, this economy is decreasing:
- 8.4 Billions dollars lost between 2000 and 2005.
- The per capita GDP decreased by 15% between 2005 and 2006.
- Palestinians can presently only produce 2/3 of what they use to produce in 1998.
- More than 1 million people are living under extreme poverty.
- More than 80% are dependant on food aid.
- The unemployment average climbed to 30% of the active population.

The Palestinian economy depends on donor’s aid, hence there is a need for new investments, and international support. The report makes two recommendations: - Reassess the trade regime with Israel and the rest of the world. Stop the isolation, open Palestine to Egypt and Jordan. – Support the Palestinian efforts on trade policies.

Palestine argues that Israel went against the Oslo and Paris agreements of 1993 and 1994.The negative actions of the army have empowered the dependence of the economy on international aid. The Palestinian delegate deplores the Israeli occupation.

Oman speaking on behalf of the Asian group and China added that Israel has highly contributed to the decrease of the Palestinian trade.

Portugal and the EU encourages bilateral talks between Palestinians and Israelis. The EU opposes it self to any division of Palestinian territories. The Portuguese delegate reminded that EU is the major donor of Palestinian assistance and that it will go on. In 2006 EU gave 688 millions euros and will provide 2.5 millions grant to improve the trade technology.

As for Israel, it’s impossible to sustain economy progress in a climate of violence. As long as Hamas controls Gaza, Israel and the International Committee shall not be concerned by Palestinian’s economic issues. The Israeli delegate wonders why do we have a special item on UNCTAD’s assistance to the Palestinian people? He deplores the fact that the report presented by Mr. Elkhafif doesn’t mention Palestinian lack of good governance: money is not used for the real purpose, there is corruption and a lack of transparency. And he didn’t forget to talk about terrorism.

Chad expressed itself against the separation wall and is joined by the League of Arab States and Algeria.

Ismaila Pedro FAYE