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Israel holds Palestinian economy captive, say analysts – theSun

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JERUSALEM: The Gaza war is speeding up Israel’s “annexation” of the Palestinian economy, say analysts, who argue it has been hobbled for decades by agreements that followed the Oslo peace accords.

While the Israel-Hamas war raging since October 7 has devastated swathes of Gaza, it has also hit the public finances and wider economy of the Israeli-occupied West Bank.

Israel is tightening the noose on the Palestinian Authority, which rules parts of the West Bank, by withholding tax revenues it collects on its behalf, economist Adel Samara told AFP.

Palestinian livelihoods have also been hurt by bans on labourers crossing into Israel, and by a sharp downturn in tourism in the violence-plagued territory, including a quiet Christmas season in Bethlehem.

Samara said that “technically speaking, there is no Palestinian economy under Israeli occupation — our economy has been effectively annexed by Israel’s”.

ALSO READ: Palestine denounces us veto blocking full UN membership bid

The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories’ borders to Israel, and with it the right to collect import duties and value-added tax for the Palestinian Authority.

Israel has repeatedly leveraged this power to deprive the authority of much-needed revenues.

But the Gaza war has further tightened Israel’s grip, Samara said, with the bulk of customs duties withheld since Gaza’s rulers Hamas sparked the war with their October 7 attack on Israel.

“Without these funds, the Palestinian Authority struggles to pay the salaries of its civil servants and its running costs,“ said Taher al-Labadi, a researcher at the French Institute for the Near East.

In February, Norway reportedly transferred to the Palestinian Authority about $115 million from Israel following a deal to release some of the frozen taxes.

Almost all Palestinian workers have also been forbidden from entering Israel for work, driving up unemployment across the territories.

The Palestinian prime minister Mohammed Mustafa bemoaned an “unprecedented financial crisis” during which his government’s deficit had soared to $7 billion, more than a third of the territories’ GDP according to the latest budgetary figures.

– ‘Collective punishment’ –

The Paris Protocol, like the 1993 and 1995 Oslo agreements they were signed under, were meant to be in effect for five years, until the creation of a Palestinian state.

But the absence of a long-term peace deal means it is still governing nearly all aspects of the Palestinian economy.

Investment is also being stifled by the protocol, said Samara, who explained that Israel “controls the land, resources and water sources” of the Palestinian territories.

Before any factory or shop requiring access to these resources can be built in the West Bank, Israel must grant authorisation, he said.

Israel’s stance has become even tougher under far-right Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich, he said, both of whom are settlers in the West Bank.

ALSO READ: 1.7 million people forcibly displaced in Gaza Strip, says UN

Critics accuse them of holding Prime Minister Benjamin Netanyahu to ransom by threatening to withdraw the support that gives him a wafer-thin governing majority.

Israeli political analyst Michael Milshtein echoed his take.

“By not allowing Palestinian workers into Israel and withholding Palestinian tax revenues, Ben Gvir and Smotrich aim to overthrow the Palestinian Authority because they view it as an enemy,“ he said.

“It’s a way to collectively punish Palestinians, whom they also see as enemies.”

Milshtein said that before October 7, nearly one-third of West Bank income came from the earnings of the 193,000 Palestinians who worked in Israel, according to Israeli figures.

Today, the number of Palestinians working in Israel has dropped to between 8,000 and 9,000, he said.

– ‘To live in dignity’ –

But Milshtein also pointed to another strain of Israeli opinion, held by centrist minister Benny Gantz and conservative lawmaker Gideon Saar.

They want to allow workers back into Israel to avoid anger sparking an uprising in the West Bank, at a time when Israeli forces are already stretched between Gaza and the Lebanese border, where they are trading fire with Iran-backed Hezbollah.

Milshtein said he believes Netanyahu is probably closer to the Gantz view.

Nasr Abdel Kareem, an economics professor at the Arab American University in the West Bank, argued that the Israeli premier is playing a power game.

“Netanyahu is putting pressure on the Palestinians and signalling to the authority that the levers of the Palestinian economy are in (Israel’s) hands,“ he said.

ALSO READ: Iran launches unprecedented strikes on Israel, opening wider conflict

“Netanyahu believes that he will weaken the authority and make it accept political concessions” when a peace agreement eventually has to be hammered out, he said.

This strategy may be misguided, said Nasr, because it is based on the premise that letting the Palestinian economy flourish would automatically bring peace to the West Bank.

“Historically, previous uprisings broke out” when times were not tough economically, he said, adding that ultimately Palestinians want a state as much as a healthy economy.

“Palestinians want to live with dignity, but for them this also implies liberation and the establishment of a Palestinian state.”

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Business

A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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