Israel Blocks Palestinian Export in Escalating Trade Crisis

A Palestinian farmer packs pomelo in a field in the Jordan Valley in the occupied West Bank on February 1, 2020. (AFP)
A Palestinian farmer packs pomelo in a field in the Jordan Valley in the occupied West Bank on February 1, 2020. (AFP)
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Israel Blocks Palestinian Export in Escalating Trade Crisis

A Palestinian farmer packs pomelo in a field in the Jordan Valley in the occupied West Bank on February 1, 2020. (AFP)
A Palestinian farmer packs pomelo in a field in the Jordan Valley in the occupied West Bank on February 1, 2020. (AFP)

The Israeli military blocked Palestinian agricultural exports on Sunday in the latest escalation of a months-long trade war that comes amid fears of renewed violence as well.

Following Defense Minister Naftali Bennett's instruction, the military said it would not allow the Palestinians to transfer their products through their land crossing to Jordan, the West Bank's only direct export route to the outside world.

The Palestinian Authority said Israeli forces at checkpoints blocked vegetable shipments that were in their way to export abroad.

The Ministry of Agriculture statement said vegetable exports to Israel were worth $88 million last year, comprising 68% of the West Bank's overall vegetable exports, reported The Associated Press.

The crisis erupted in September, when the Palestinians decided to stop importing beef from Israel. The Palestinian Authority claimed most of the 120,000 head of cattle they imported monthly from Israel was itself imported and that they therefore preferred to import directly from abroad.

The move appeared aimed at reducing the Palestinians' economic dependence on Israel.

Shortly after the September announcement, Israeli cattle ranchers saw a drop in their market and pressured Israeli authorities to take action.

Bennett retaliated with a ban on Palestinian beef and other products, triggering the Palestinians to expand their boycott, and stop importing Israeli vegetables, fruits, beverages and mineral water.

The Palestinians say their actions are aided at pressuring Israel into revoking its ban, while Israel says normal trade will be restored the moment the Palestinian reverse the cattle ban that started the crisis in the first place.

The trade crisis comes amid a surge in violence following the release of President Trump's Middle East plan, which the Palestinians have rejected. A week of protests left four Palestinians dead.



Egypt to Raise Subsidized Bread Price by 300%, PM Says

A young boy delivers freshly-baked bread in the al-Darb al-Ahmar district in the old quarters of Cairo on May 28, 2024. (AFP)
A young boy delivers freshly-baked bread in the al-Darb al-Ahmar district in the old quarters of Cairo on May 28, 2024. (AFP)
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Egypt to Raise Subsidized Bread Price by 300%, PM Says

A young boy delivers freshly-baked bread in the al-Darb al-Ahmar district in the old quarters of Cairo on May 28, 2024. (AFP)
A young boy delivers freshly-baked bread in the al-Darb al-Ahmar district in the old quarters of Cairo on May 28, 2024. (AFP)

Egypt, often the world's biggest wheat importer, will raise the price of heavily subsidized bread for the first time in decades, a sensitive decision that has been delayed for years.

The price of subsidized bread will jump 300% to 20 piasters ($0.0042) from 5 piasters starting in June, Prime Minster Mostafa Madbouly said at a press conference on Wednesday.

About two-thirds of Egypt's population benefit from a program that gives 5 loaves of round bread daily for 5 piasters a loaf.

The handout is a lifeline to the poor, but is often criticized as wasteful and a strain on the budget.

The announcement comes after Egypt allowed a sharp devaluation of its currency in March and shifted to a flexible exchange rate system. Inflation surged to a record last summer and has eased a touch since then.

"We understand fully that (the price rise) is a thorny issue and many governments (in the past) tried to avoid moving on it," Madbouly said.

"But we see today the size of the subsidy bill on the Egyptian state and so we had to start to move as little as possible to ensure the sustainability of service."

Madbouly has said the government is studying moving towards conditional cash subsidies for bread.

After two years of chronic foreign currency shortages, Egypt has secured a windfall of funding since late February from the IMF, the UAE and other entities.

The new raised price represents 16% of the cost of making the bread, which has risen to 125 piasters from 115 last year, Supply Minister Ali Moselhy told the same press conference.

The finance ministry in March said it would allocate around 125 billion Egyptian pounds ($2.66 billion) for bread subsidies in its 2024/2025 state budget and around 147 billion pounds for petroleum product subsidies.

Egypt imported about 10.88 million metric tons of wheat in 2023, up 14.7% from 9.48 million tons in 2022.

Moselhy told Reuters that the decision will not impact the quantities of wheat the state imports.