ECONOMIC SURVEY
(COMMUNICATED BY GPO ECONOMICS DESK)
14 NOVEMBER 94
PEACE ECONOMY:
* LICENSES GRANTED TO IMPORT TOMATOES FROM JORDAN.
The Agriculture Ministry announced it has issued 10 Israeli wholesalers
with licenses to import up to 500 tons of tomatoes from Jordan. According
to the Agriculture Ministry, the licenses will allow the wholesalers to
bring the produce across the border from Jordan by the end of the week.
This is in addition to recent licenses issued by the Ministry for
importing tomatoes from Europe in order to lower the high price of
tomatoes. The produce from Jordan is expected to replace close to 450 tons
of tomatoes which normally are brought from Gaza, but have not been
reaching the Israeli market recently due to the cholera outbreak in Gaza.
The Ministry reported it is also examining possibilities for importing
tomatoes from Turkey, as well as continuing imports from Europe.
Agriculture Ministry - Ronny Hassid, (03)-6971749
* ISRAELI-PALESTINIAN ECONOMIC STEERING COMMITTEE TO MEET AGAIN; ISRAEL
TRANSFERS NIS 11.5 MILLION TO PALESTINIAN AUTHORITY.
On 9.11.94, Finance Minister Shohat and head of the Palestinian economic
negotiating team Abu Ala met in the Finance Minister's office to discuss
additional methods of implementing the Paris Economic Agreement. Shohat
agreed with Abu Ala that problems exist regarding a range of issues such
as import licensing, import quantities, VAT taxes, movement of labor, and
movement of produce. Therefore, the two decided to reconvene the steering
committee to deal with the issues. Budget Director David Brodet said that
last week Israel transferred NIS 11.5 million to the Palestinian
Authority. The Finance Ministry transferred NIS 5.5 million worth in
Petroleum Tax, NIS 2.5 million in Import Tax, NIS 2.5 in Health Stamp Tax,
and NIS 1 million in Income Tax for Palestinians working in Israel. Abu
Ala requested that Shohat push for early empowerment in the West Bank on
economic issues. Shohat responded that the decision needs to be made by
the Cabinet and he would bring it up with the Prime Minister. At the
meeting, it was also revealed that the State of Israel had transferred NIS
430 million in funds set aside from Palestinian Civil Administration
workers' pensions to an American investment bank as part of its
obligation to the Palestinian Authority.
Finance Ministry - Eli Yosef, (02)-317201
* FIRST VISIT OF EGYPTIAN ECONOMIC AND FOREIGN TRADE MINISTER THIS WEEK.
Mahmoud Muhamed Mahmoud, Egypt's Economic and Foreign Trade Minister, will
arrive in Israel Wednesday, 16.11.94, for a two day visit as guest of
Industry and Trade Minister Micha Harish. The two ministers will co-chair
a meeting of the Joint Israeli-Egyptian Economic Committee in order to
discuss a number of methods to increase trade between the two sides.
Israel will request that Egypt drop certain restrictions hurting Israeli
exports, such as metal pipes, and will bring up for discussion multiple
entry visas for businesspeople, cutting of bureaucratic procedures,
reduction of telecommunication prices for Egypt to Israel communications,
and a mutual reduction in customs duties. Trade between the two countries
in 1993 was $20.5 million, excluding petroleum, with Israel holding a
positive trade balance. Israeli exports worth $10.9 million consisted of
transportation vehicles, food and agricultural products, wood, paper and
textiles, and chemicals and plastics. Imports from Egypt, worth $9.6
million, were primarily cotton, textiles and petroleum.
Industry and Trade Ministry - Avital Ber, (02)-220340
STATISTICS:
* INCREASE IN IMPORTS OUTPACES INCREASE IN EXPORTS FOR FIRST TEN MONTHS OF
1994.
Imports to Israel rose by $2.6 billion, or 15%, reaching $19.24 billion
while exports only rose by $1.4 billion, or 12%, reaching $12.8 billion
for the first ten months of 1994, the Central Bureau of Statistics
reported. The trade imbalance pushed up the trade deficit by 22% or $1.2
billion to $6.4 billion for the first ten months of the year. The increase
in exports for the period consisted of 30% to Asian nations, 25% to the
United States, 15% to the EU, and 20% to the rest of the world. The
increase in imports for the period was made up of 60% from the EU, 25%
from the US, 8% from Asia, and 7% from the rest of the world.
Central Bureau of Statistics - David Neumann, (02)-553400
TRANSPORTATION:
* NIS 105 MILLION TO BE SPENT ON CREATING SPECIAL LANES FOR PUBLIC
TRANSPORTATION.
The Transportation Ministry announced that will implement a multi-year
program for the creation of special public transportation lanes around the
country. By the year 2000, some 160 kilometers of public transportation
lanes in the Tel Aviv region will have been created by the Ministry,
according to Transportation Minister Israel Kessar.
Transportation Ministry - Eli Dannon, (02)-319690
FOREIGN TRADE:
* ISRAELI MEMBERS OF ISRAEL-U.S. HI-TECH COMMISSION SUBMITTING PROJECT
REQUESTS TO INDUSTRY AND TRADE MINISTRY.
Israeli companies have been asked by the Industry and Trade Ministry to
submit their requests to the Israel-U.S. Hi-Tech Commission for funding,
the Ministry announced. The project requests are being collected in order
to review them before the next and third meeting of the commission
in February 1995. The projects will be partnerships between Israel and US
firms aimed at promoting more joint industrial cooperation between the two
nations.
Chief Scientist's Office - Dr. Shuki Gleitman, (02)-220588