On September 20th, 2010, Israel allowed about 20 new cars into Gaza, for the first time since Israel initiated the blockade in response to the Hamas takeover of the Gaza Strip in 2007.
Israel’s security cabinet voted, on June 17th, 2010, to ease its land blockade of the Gaza Strip, following intense international criticism over Israel’s deadly raid on an aid flotilla, in international waters, which resulted in the death of 9 people aboard the ships.
“It was agreed to liberalize the system by which civilian goods enter Gaza [and] expand the inflow of materials for civilian projects that are under international supervision,” said the Israeli government in a statement after the meeting. The delivery of the cars was delayed due to red tape and rocket attacks, a spokesman said.
Raed Fattouh, the Palestinian coordinator of supplies to the enclave, told Haaretz on June 17th, that the new Israeli-approved product list included all food items, toys, stationery, kitchen utensils, mattresses and towels. The decision did not affect Israel’s naval blockade of the coastal strip or its ban on the import of building materials, which are vital for reconstruction of the strip after the December 2008-January 2009 assault in Gaza known as Operation Cast Lead.
The three week assault, according to the United Nations, left more than 50,000 homes, 200 schools, and 800 industrial properties damaged or completely destroyed due to the military attack on the Strip.
Israel and Egypt shut down Gaza’s border crossings when an Israeli soldier was captured in June 2006. They initiated the blockade when Hamas took power of Gaza, in June 2007, after a deadly battle with Fatah.
In 2006, Hamas won 74 of the 132 seats in the parliamentary elections in Gaza and the West Bank, defeating its rival Fatah. Israel refused to recognize Hamas’ legitimacy because the they refused to renounce violence, recognize Israel, and accept previous agreements between Israel and the Palestinian National Authority.
Israel views the blockade as necessary to place pressure on Hamas and stop the rocket attacks against them from the Strip. According to B’Tselem, from June 2004 till the end of Operation Cast Lead, in January 2009, which caused the death of over 1,400 Palestinians, “19 civilians were killed in Israel by rockets and mortar fire by Palestinians…In addition, two soldiers were killed”.
Maher al-Oukka, a Palestinian car showroom owner, told Haaretz on May 15th, 2010, prior to the easing of the blockade, Gazan’s could still get brand new cars, but the cars would come in pieces that need to be welded together, and that they cost about double the price. “Now we sell it for 22,000 dollars,” he said, using a Honda Civic, model 2000, as an example, which used to sell for 11,000 dollars before 2007.
Zeyad Zaza, the minister of economy in Gaza, told Haaretz that there are only about 60,000 cars in the Gaza Strip, including trucks and bulldozers, for its 1.5 million residents. The Palestinians have been relying heavily on the hundreds of tunnels that run under the border with Egypt. They use the tunnels to smuggle in goods ranging from basic needs such as cows, sheep, and fuel to more luxurious items such as cars (in pieces), cigarettes, and candy.
Mohsen Adnan, who is a Gaza-based economist, told Haaretz: “We believe that lifting the Israeli siege will resolve not only the car crisis, but the entire economy.” He said in May, 2010, prior to the ease of the Gaza blockade.
The International Monetary Fund, on September 14th, 2010, released a report stating that Gaza’s economy had grown by 16% since the easing of the blockade, but warned that the economy was expanding from a “low base”. The report shows that Gaza has one of the world’s highest unemployment rates at above 35%. According to BBC, four out of five Palestinians, of the Gaza’s 1.5 million residents, rely on foreign aid.