In-Depth Coverage

Original Commentaries

09/04/08: From Zero-Sum to Win-Win —Mara Rudman, adviser, Middle East Progress; senior fellow, Center for American Progress. Original Commentary for Middle East Bulletin.
09/04/08: How Progress Is Possible —
08/07/08: How to Deal with Jerusalem —Lt. Col. (Res.) Ron Shatzberg, Project Director, Economic Cooperation Foundation. Interview with Middle East Bulletin.

Setting the Record Straight

Two-State Solution Still Best Option

“In practical terms, we can reach two conclusions: First, a final-status agreement, although its details are known, cannot be secured in the foreseeable future. Second, the time has come to think about other solutions. One of them is a return not to the 1967 borders, but rather, to the reality that prevailed in 1967, when Jordan controlled the West Bank.”
—Major General (ret.) Giora Eiland, “The Jordanian Option,” YNet, September 3, 2008

"On both sides of the green line and, indeed, wherever people think about solutions to the Israeli- Palestinian conflict, a lot of old/new thinking is taking place. … Most of these ideas are patently unrealistic. Discussion of them often reflects despair, not pragmatic strategic thinking. … Precisely because there is no such alternative, other options more readily suggest themselves, ranging from temporary conflict management to three states or entities. Nor does failure today mean that tomorrow we cannot try again to arrive at a two-state solution, which remains the best option for all."
—Yossi Alpher, coeditor of the bitterlemons family of internet publications & former director, Jaffee Center for Strategic Studies, Tel Aviv University, "One State Definitely Not an Option," bitterlemons.org, August 18, 2008

Middle East Analysis

How Progress Is Possible —Hiba Husseini, chair, Legal Committee to Final Status Negotiations between the Palestinians and Israelis; former vice chairperson of the Palestine Securities Exchange (1998-May 2005). Interview with Middle East Bulletin.
Perils of an Israeli Transition —The New York Times, Editorial
The Arabs Will Look Differently Upon America —Ron Pundak, director general of the Peres Center for Peace and former architects and negotiators of the Oslo Agreement (bitterlemons.org)

Israeli-Palestinian Trade

May 25, 2007

The Israeli and Palestinian economies are heavily intertwined. Approximately 90% of Palestinian exports are directed at Israel and imports from Israel, registered and informal, account for as much as 65% of the Palestinian GDP. Israel is the Palestinians’ most important export market. Small- and medium-sized Palestinian and Israeli businesses have a highly integrated economic relationship.

The value of Palestinian exports to Israel in 2005 was approximately US$500-550 million, including roughly US$400-450 million worth of merchandise, and US$50-100 million worth of services.

In 2005, the value of Israeli exports to the PA was approximately US$2.5-2.7 billion, including US$2.2-2.5 billion worth of merchandise, and US$200-300 million worth of services. Overall, Israel accounts for 70%-75% of registered Palestinian imports.

Border crossings present the greatest challenge to Israeli-Palestinian trade. For instance, in Gaza, the number of trucks passing through Karni dropped from close to 1,000 per day on the eve of the Intifada, to between 250-500 per day in the second half of 2005 (monthly averages), and fell to between 80-300 in January-August 2006

Excerpted from The Untapped Potential: Palestinian-Israeli Economic Relations, by the Peres Center for Peace and PalTrade Palestine Trade Center