Jordan Times
Saturday, May 15, 1999
Jordan seeks peace dividend from Israel
By Suleiman Al Khalidi
Reuters
AMMAN — Jordanian businessmen say the winner of next week's Israeli elections must make compromises to revive Arab-Israeli economic partnership, shattered by three years of political stalemate.
Many in the business community say Prime Minister Benyamin Netanyahu's government has been reluctant since assuming power in 1996 to pay even a minimal price to nurture economic fruits from the Jewish state's landmark 1994 peace with Jordan.
“Until today Israel is not playing it fairly. They cannot have their cake and eat it,” said Omar Masri, an investment banker whose firm Atlas Investment Group promotes foreign investment in both Jordan and the Palestinian self-rule areas.
Topping the list of Jordanian complaints are the obstacles preventing trade with the West Bank, Jordan's natural market and a part of the Kingdom until its occupation by Israel in the 1967 Arab-Israeli war.
“Israel is not giving us access to its markets. More importantly to the Palestinian market. They are not allowing free trade with the Palestinians, Jordan's own natural market,” said Masri, whose family comes originally from the West Bank.
Israel has cited security concerns to justify lengthy procedures at border crossings between Jordan and the West Bank which hold up the flow of trade.
Israeli diplomats say that since a trade accord was signed in 1996 Jordanian exports to Israel and the West Bank rose to 24JD million ($34 million) last year.
But the figure is still a tiny proportion of Israel's share of the West Bank market.
Deep ethnic and historic ties link a majority of Jordanians with the Palestinian territories.
Masri echoed a widespread view in business circles that Israel's unflinching grip on the lucrative Palestinian market, a $2 billion annual money-spinner for Israeli firms, shows its unwillingness to make a small sacrifice for peace.
Businessmen say even a small increase in Jordan's minimal trade to Palestinian markets would have softened the Kingdom's woes which include growing poverty and unemployment and a shrinking and heavily indebted economy already hit by U.N. sanctions on its main trading partner Iraq.
But instead of delivering a “peace dividend” they say Israel has maintained a narrow protectionism policy which has squeezed its closest Arab peace partner.
The lack of economic opening has been matched by a political stalemate leaving those Jordanians who pushed ahead with economic projects with Israel feeling exposed.
Netanyahu has angered Arab nations by freezing the Wye plantation land-for-security deal signed with the Palestinians last October, which would have expanded Palestinian self-rule.
Few are now willing to explore deals with Israeli firms even when profit may be found. Potential joint ventures have quietly been shelved due to deep suspicions over Israel's intentions.
“Jordan was taken for granted by Israel. The peace treaty could have brought many more mutual benefits,” said Omar Salah, head of Jordan's Century Investment Group, the first firm to engage with Israeli companies in large-scale projects in the face of widespread public hostility.
Salah believes Israeli intransigence held back many businessmen from seeking opportunities with Israel.
“Businessmen were not able to come out of the cold, and dealing with Israel was hidden because the political environment did not allow them to speak out about the advantages and potential of business,” Salah said.
He said his firm, an employer of 2,500 people with total investments of around $86 million spanning textiles to electronics located in an industrial zone near the border with Israel, was now turning away from its western neighbour.
“Our strategy of growth is now towards attracting Asian and U.S. firms to Jordan when the focus would have been Israeli if the peace process had moved ahead,” Salah added.
Century's model of cooperation prompted Washington to grant the industrial zone's products free access to the U.S. market in the hope of fostering wider Israeli-Jordanian ventures.
Ironically, Salah is now benefiting from the Qualifying Industrial Zone status to divest his links with Israel and attract multi-nationals from Europe and Asia.
Investors and businessmen say a new Israeli government would have to concede occupied Palestinian land for peace to allow for a revival of hope in Arab-Israeli business dealings.
“It's a wait-and-see attitude. Even if the new Israeli government shows that it will be willing to move ahead, people will want to see real concrete action to re-energise the peace process. Israel has to adopt a more magnanimous attitude towards Arabs,” Salah concluded.