Palestine Boosts Economic Ties With Egypt

Palestinian Prime Minister Shtayyeh visited Cairo in an effort to increase economic and trade ties. (Flickr)

An October 7 visit to Cairo by Palestinian Prime Minister Mohammed Shtayyeh revealed that Egypt and Palestine are boosting economic ties at the expense of Palestine’s ties with Israel. The visit, which included cabinet ministers from both sides, concluded on October 11 and was described as successful by Shtayyeh.

Not only was it the first visit of its kind between the two nations since 1994, but both sides also made concrete commitments. According to Egypt Today, trade between the two countries prior to this meeting was worth less than $160 million. Ibrahim Millem, a Palestinian government spokesperson, told Al-Monitor that the two sides discussed making it easier for Palestinian businessmen to travel to Egypt. He added that they explored “opening the Egyptian market to Palestinian exports, especially in the agriculture field, while calling on Egypt to replace Israel in importation of various items such as cement and expertise in areas such as oil and gas exploration and in fish farming.”

The Palestinian delegation has asked for Egyptian assistance in the creation of economic zones, with Egypt also agreeing to increase imports of Palestinian dates, according to Ma’an News. The Israeli government’s mid-February decision to reduce Palestinian funds by $138 million motivated the Palestinian government to secure a deal with Egypt, France 24 reports. With Palestinian-Israeli trade worth nearly $5 billion, Shtayyeh has recognized that their dependence on Israel may be a vulnerability, especially if Israel chooses to restrict funding.

Al-Monitor reports that Shtayyeh elaborated on this point during his Cairo visit, giving a lecture at the Ahram Center where he said that Palestine’s reliance on Israel is cause for concern. With Palestinian delegations also having visiting Baghdad, Iraq, and Amman recently, the Shtayyeh government is making their position clear: they are seeking new trade partners.