Treasury Secretary Janet L. Yellen said Tuesday that she had personally called on Israeli Prime Minister Benjamin Netanyahu to increase commercial engagement in the West Bank, claiming it was important for the economic well-being of both Israelis and Palestinians.
Ms. Yellen’s request was outlined in a letter she sent to Mr. Netanyahu on Sunday. It was her clearest public expression of concern about the economic consequences of the war between Israel and Hamas. In the letter, Ms. Yellen said, she warned of the consequences of the erosion of basic services in the West Bank and called on Israel to reinstate work permits for Palestinians and reduce trade barriers in the West Bank.
“These measures are critical to the economic well-being of Palestinians and Israelis alike,” Ms. Yellen said at a news conference in Brazil ahead of a meeting of finance ministers from the Group of 20 nations.
The letter came as the cabinet of the Palestinian Authority, which administers part of the Israeli-occupied West Bank, tendered its resignation on Monday in hopes of reshaping itself to potentially take over administration of Gaza after the war ends there. Negotiations between Israel and Hamas also resume this week in Qatar, as mediators from that country, along with the United States and Egypt, work on an agreement to release some hostages held by Hamas in Gaza in return for Israel agreeing to a temporary ceasefire agreed. Fire.
Senior Biden administration officials have been trying to broker a solution to the conflict in Gaza, which has killed about 29,000 Palestinians, according to health authorities there. Ms. Yellen has focused largely on tracking the economic impact of the war and managing the sanctions that the Treasury Department has imposed on Hamas and those involved in its financial network.
While the Biden administration is concerned about the humanitarian crisis in Gaza, it is increasingly worried that economic unrest in the West Bank could fuel violence and further deteriorate living standards there. The war has already taken a toll on Israel’s economy, which contracted nearly 20 percent in the fourth quarter of last year.
Ms. Yellen’s letter highlighted the steps the United States has taken to disrupt Hamas’ financial networks and how Israel benefits from an economically stable West Bank. She also said that the suspension of permits for West Bank workers had caused significant unemployment while hurting the Israeli economy.
The finance minister called on Israel to ensure that tax revenues benefit Palestinians in the West Bank.
Since Hamas’s brutal attack on Israel on October 7, the Israeli government has withheld tax revenues it collects on behalf of the Palestinians. Traditionally, this money was returned to the Palestinian Authority, which used it to finance its operating budget. Israel had previously frozen these tax revenues and then released them during times of conflict with the Palestinians.
White House national security communications adviser John Kirby said last month that President Biden had discussed with Mr. Netanyahu the need to ensure tax revenues were available to pay the salaries of Palestinian security forces in the West Bank.
Ms. Yellen said on Tuesday she was encouraged that revenue was beginning to flow to the West Bank. That money began flowing after Israeli and Palestinian officials agreed earlier this month to use Norway as a temporary intermediary for the transfer of taxpayer funds frozen by Israel.
“The United States has called on the Israeli government to transfer customs revenue to the Palestinian Authority to fund essential services and stimulate the West Bank economy,” Ms. Yellen said. “I welcome the news that an agreement has been reached and funds have started to flow. This must continue.”
The finance minister said the war in Gaza had not yet had a significant impact on the global economy. She said the United States would continue to look for ways to provide aid to innocent Palestinians and strengthen the West Bank economy.
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2024-02-27 12:18:47
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