Palestinian Territories: Fragmented and Walled in

Smoke rises after an Israeli air strike in Gaza City early on May 12 - AFP
Smoke rises after an Israeli air strike in Gaza City early on May 12 - AFP
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Palestinian Territories: Fragmented and Walled in

Smoke rises after an Israeli air strike in Gaza City early on May 12 - AFP
Smoke rises after an Israeli air strike in Gaza City early on May 12 - AFP

With fears growing of a "full-scale war" between Israel and the Palestinians, here is a look at the West Bank and the Gaza Strip.

The two territories plus Israeli-annexed east Jerusalem were long touted as basis of a Palestinian state in a "two-state" solution to the long-running conflict.

But that goal has become ever more distant, with the West Bank fragmented by Jewish settlements and several states recognizing Jerusalem as Israel's "undivided" capital.

Here is some background:

- Occupation -

In 1947 the United Nations voted to partition British-ruled Palestine into two states -- one Arab and one Jewish.

It made Jerusalem, sacred to the three Abrahamic religions and claimed by both sides as their capital, an international zone.

Almost immediately, fighting broke out that would eventually see more than half the Palestinian population -- 760,000 people -- fleeing or being expelled from what was to become Israel.

As the British mandate ended in 1948, Israel declared statehood.

The next day its Arab neighbors declared war. The conflict ended with Israel controlling 78 percent of mandate Palestine.

In the so-called Six-Day War of 1967, Israel occupied both the West Bank and the Gaza Strip.

It also occupied and later annexed east Jerusalem, which contains many of the sites holiest to Judaism, Islam and Christianity.

- West Bank -

By far the larger of the two Palestinian territories, the West Bank covers 5,655 square kilometres (2,180 square miles) and is sandwiched between Israel and Jordan.

It has been occupied by the Israeli army for the past five decades.

The Palestinian Authority, headed by Mahmoud Abbas, has limited powers over just 40 percent of the territory, mainly urban centers.

Israel, which controls all the entry points, administers 60 percent of the territory including its Jewish settlements, as well as its vital water resources.

Israel has also erected a security barrier partly following its armistice line with the West Bank but also cutting deep into the territory.

About 400,000 Israelis live in the West Bank, alongside 2.7 million Palestinians.

- East Jerusalem -

The sparks for the current crisis were clashes at the flashpoint Al-Aqsa mosque compound and a years-long bid by Jewish settlers to take over homes Palestinians say are theirs.

The status of Jerusalem is possibly the most sensitive issue of the whole conflict.

After capturing it in 1967, Israel annexed east Jerusalem, including the Old City, in a move never recognized by the international community.

Israel views the whole city as its capital: a stance backed by former US president Donald Trump, who moved Washington's embassy there.

Palestinians want East Jerusalem as the capital of their own future state.

The Old City, a UNESCO World Heritage site, includes the golden Dome of the Rock and Al-Aqsa mosque compound, Islam's third holiest site.

This lies directly above the Western Wall, the holiest place where Jews are allowed to pray, a short walk from the Church of the Holy Sepulchre, where Christians believe Jesus was crucified and buried.

More than 200,000 Israelis live in east Jerusalem, alongside around 300,000 Palestinians.

- Gaza Strip -

This strip of territory bordering Israel sits on the Mediterranean Sea, and also shares a border with Egypt.

It is one of the world's most densely populated areas, with some two million people squeezed into a strip just 41 kilometres (25 miles) long and at one point less than six kilometres across.

After occupying Gaza for 38 years, Israel unilaterally withdrew in 2005, but soon afterwards imposed a stifling land, air and sea blockade.

Islamist movement Hamas, which won Palestinian elections in 2006, seized the territory from the Palestinian Authority the following year.

Israel, which like most western governments considers Hamas a terrorist organization, has carried out three full-scale military offensives against Gaza since 2008.

Around half of the population is out of work, two thirds of them young people, according to the World Bank. More than two thirds of the population depends on humanitarian aid.

Half of Gaza's residents live below the internationally recognized poverty line.



Where Do Trade Talks Stand in the Rush to Avert Higher US Tariffs?

FILE PHOTO: A container is loaded onto a cargo ship while docked at Hai Phong port, after US President Donald Trump announced a 90-day pause on tariffs for many countries, in Hai Phong, Vietnam, April 16, 2025. REUTERS/Athit Perawongmetha/File Photo/File Photo
FILE PHOTO: A container is loaded onto a cargo ship while docked at Hai Phong port, after US President Donald Trump announced a 90-day pause on tariffs for many countries, in Hai Phong, Vietnam, April 16, 2025. REUTERS/Athit Perawongmetha/File Photo/File Photo
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Where Do Trade Talks Stand in the Rush to Avert Higher US Tariffs?

FILE PHOTO: A container is loaded onto a cargo ship while docked at Hai Phong port, after US President Donald Trump announced a 90-day pause on tariffs for many countries, in Hai Phong, Vietnam, April 16, 2025. REUTERS/Athit Perawongmetha/File Photo/File Photo
FILE PHOTO: A container is loaded onto a cargo ship while docked at Hai Phong port, after US President Donald Trump announced a 90-day pause on tariffs for many countries, in Hai Phong, Vietnam, April 16, 2025. REUTERS/Athit Perawongmetha/File Photo/File Photo

As a Wednesday deadline approaches for steeper US tariffs to hit dozens of economies ranging from the EU to India, trade negotiations with President Donald Trump's administration are coming down to the wire.

The levies taking effect July 9 were announced in April, with the White House citing a lack of "reciprocity" in trade relations. But they were swiftly halted, allowing room for talks.

Days before their reimposition, where do things stand?

EU: 'Ready' for deal

The European Union said it is "ready for a deal" with Washington, with the bloc's trade chief meeting his US counterparts Thursday.

European Commission president Ursula von der Leyen said the EU was targeting an "agreement in principle" when it came to the July 9 cutoff, AFP reported.

With no deal, the US tariff on EU goods doubles from the "baseline" of 10 percent to 20 percent -- with Trump previously threatening a 50 percent level.

Vietnam: A pact with uncertainties

Washington and Hanoi unveiled a trade pact Wednesday with much fanfare and few details, but it allowed Vietnam to avoid Trump's initial 46 percent tariff.

Under the agreement, Vietnamese goods face a minimum 20 percent tariff while products made elsewhere face a 40 percent levy -- a clause to restrict "transshipping" by Chinese groups.

But there remain questions on how the higher levy would apply to products using foreign parts.

There is also a risk that Beijing will adopt retaliatory measures, analysts warned.

Japan: Rice, autos at stake

Despite being a close US ally and major source of foreign investment, Japan might not escape Trump's tariff hike.

Tokyo's trade envoy Ryosei Akazawa has made numerous trips to Washington through the end of June.

But Trump recently criticized what he described as Japan's reluctance to open up further to US rice and auto exports.

"I'm not sure we're going to make a deal," Trump said, adding that the country could pay a tariff of "30 percent, 35 percent, or whatever the number is that we determine."

India: A good position

Indian manufacturers and exporters want to believe they can avoid a 26 percent tariff.

Negotiations between both countries have been going well for weeks, and Trump himself suggested at the end of June that a "very big" agreement was imminent.

Ajay Sahai, director general of the Federation of Indian Export Organizations, said the feedback he received "suggests positive developments." But he maintained that the situation was fluid.

Finance Minister Nirmala Sitharaman has stressed that agriculture and dairy products remain "very big red lines."

South Korea: Muted optimism

Seoul, which is already reeling from US tariffs on steel and autos, wants to avert a sweeping 25 percent levy on its other exports.

Cooperation in shipbuilding could be a bargaining chip, but "at this stage, both sides still haven't clearly defined what exactly they want," said new President Lee Jae Myung on Thursday.

"I can't say with confidence that we'll be able to wrap everything up by July 8," he added.

Indonesia, Thailand, Taiwan in the wings

Other Asian economies including Indonesia, Thailand and Cambodia, which faces a 49 percent tariff, wait with bated breath.

Indonesia has indicated willingness to boost energy, agriculture and merchandise imports from the United States. Bangladesh meanwhile is proposing to buy Boeing planes and step up imports of US agriculture products.

Taiwan, for whom Washington is a vital security partner, faces a 32 percent duty without a pact.

Although both sides have faced bumps along the way, Taiwanese Vice President Hsiao Bi-khim said "negotiators from both sides are working diligently" to find a path forward.

Switzerland: Hope for delay

Switzerland's government said Washington has acknowledged it was acting in good faith, and assumes its tariff level will remain at 10 percent on July 9 while negotiations continue.

But without a decision by the president as of the end of June, Switzerland did not rule out that levies could still rise to a promised 31 percent.