Strategic Assessment

In recent years, Palestinian organizations, as well as the Palestinian government, have used the boycott of Israel goods, especially Israeli foodstuffs, to put pressure on Israel. This was done, for example, during Operation Protective Edge in the summer of 2014; in early 2015, when Israel froze the transfer of tax revenues to the Palestinian Authority; and in the spring of 2016, when Israel prevented the sale of Palestinian food products in Israel. Despite the threats, an analysis of the data shows that the economic effect of such boycotts is marginal: while since the summer of 2014 the share of Palestinian imports from Israel dropped from 72 to 58 percent, the decrease was mostly the result of the global drop in fuel prices. Although there is evidence of a long term decline in Israeli food industry sales to the PA, the economic ramifications of Palestinian boycotts of the Israeli food industry are estimated to be less than NIS 200 million, representing merely half a percentage point of the revenue of that industry.