Sanctions: Palestinians accuse Israel of blockading inward IT and telecoms shipments.

A group of Palestinian hi-tech companies has accused the Israeli authorities of impounding important communications and other hi-tech equipment in contravention of international trade agreements. The companies report that in addition to breaching the Paris Protocol agreement that guarantees the right to import equipment from foreign companies, the Israeli measures have caused loss of business estimated at tens of millions of US dollars for Palestinian, European and U.S companies.

Both the Telecommunication and the IT sectors are brought to a standstill due to inability to clear products held at Israeli ports: the seized goods comprise telephone exchange systems, faxes, cellular base stations, telephone sets, cellular telephone terminals, data switches, routers, modems, videoconferencing systems, and ADSL equipment; all indispensable for providing Palestinians with communication and advanced technological compatibility, say the companies.

The crux of the problem lies in the seizure of equipment that is normally traded and utilized by Israeli and international companies, with the only difference that it would serve the Palestinian private sector. International suppliers of products are: Ericsson, Alcatel, HP, 3Com, Siemens, Motorola and Cisco.

Mashour Abu Daka, Director of the Palestine IT Association PITA, states that "The measures restrict the clearance of any data/telecommunication products imported by Palestinian representatives, despite import licenses." Abu Daka says he is baffled by how "the same products [are] imported by Israeli companies and sold in Palestine."

According to Iyad Judeh, Executive Director of the Palestinian Trade Center, Paltrade, '"The discriminatory practices have enormously impacted [upon] the Palestinian economy. It has resulted in substantial revenue and job losses, threatening the survival of Palestinian companies and their ability to deliver services".

Paltel, Palestine's Telecommunications Company, efforts to provide Data Services such as Leased Lines, Frame Relay, ADSL and ATM have been crippled by Israeli seizure of the necessary equipment supplied by Alcatel-Italy.

According to Paltel's CEO Mosab Khourma, "The measures have put us in a difficult bind between our foreign suppliers and customers. They result in depriving the Palestinian Population with the opportunity to use the internet and connectivity within Palestine and the outside world".

"Our company has incurred significant losses due to our inability to supply customers with PBXs and Mobile Phones. This has had a negative impact on our reputation and our revenue," said Tareq Maayah, CEO of Siemens Information and Communication Technologies. JAWWAL, the Palestinian Cellular Communications LTD, had its permits for importing cellular equipment withdrawn in October 2001 and they ave not been restored. Moreover, it had 60 radio-based stations which are essential in expanding the capacity of the existing network, impounded at Israeli ports of entry.

Hakam Kanafani, CEO of JAWWAL, says that, "the discriminatory practices allow Israeli companies to illegally compete for customers in Palestine," and warns that this "can exacerbate the current level of unemployment hindering the development of a viable economy."