Economic Exploitation

This sub-category of involvement refers to Israeli and international companies that benefit from structural advantages in the framework of the Israeli occupation. It includes companies that provide services or goods to Palestinians at high costs, exploit the restrictions on movement imposed on the Palestinians, who cannot purchase these goods and services at a competitive price locally or abroad, and profit from the active de-development of competitive Palestinian industries. A 2016 UNCTAD report noted that in recent years, the Israeli economy absorbed 85% of Palestinian exports and accounted for over 70% of Palestinian imports. Meanwhile, the occupied Palestinian territory accounts for only 3% of total Israeli trade.

Companies also profit from Israeli control over Palestinian fiscal revenue. Under the Paris Protocol, Israel collects customs duties on imports destined for the Palestinian market, which are required to go through Israel, as well as indirect taxes on Israeli products sold to the Palestinian market and income taxes and social transfers from Palestinians employed in Israel or the settlements. Not only has Israel weaponized Palestinian fiscal revenues, withholding it as a punitive measure, it has also illegally retained and used Palestinian import and sales tax moneys to pay various debts to Israeli companies such as the Israel Electric Corporation (IEC).

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