The semi-official Egyptian Al-Ahram newspaper published on Sunday a report regarding the economic benefits Egypt would reap in the event of establishing a free trade zone with Gaza Strip.
The report pointed out that Gaza represents an economic and strategic treasure for Egypt in case it turned Gaza into a market for its products pointing out that Gaza has a population of two million people. It noted that Israel supplies 60% percent of the enclave’s needs while each of Turkey and China provide a big portion of the remaining 40%.
According to the report the establishment of a free trade zone between Egypt and Gaza to promote Egyptian products creates thousands of jobs for Egyptians as well as benefits from the monthly expenditure Gazan families spend which in 2011 reached about 729.3 JD per family which is currently equivalent to about 18 thousand Egyptian pounds.
According to the Palestinian Bureau of Statistics more than one-third of the Palestinian population totaling 4.8 million people in Gaza and the West Bank live in the Gaza Strip which does not exceed 360 square kilometers.
An Egyptian study of the Institute for Political and Strategic Studies published last November ensures that the free trade zone will be the solution to many of the economic problems afflicting the people of Sinai and it may provide an income for Egypt estimated at about $2.5 billion a year which will contribute in the country’s economic security.
Egypt signed a trade agreement with Palestine in 1998 which contributed in raising the amount of Egyptian exports to Palestine during the period from 2005 to 2015 by about 209% according to the Palestinian press agency.
The Israeli government is seeking to hinder the Egyptian exports to Palestine by imposing high customs taxes on Egyptian exports including dairy and juice products.
Israel comes first in terms of exports amount to Palestine which exceeded during 2015 about $3 billion according to official Palestinian data.
