Economists from the Israeli Federation of Chambers of Commerce have concluded that the Arab boycott of Israeli products worldwide has cost the Israeli economy $45 billion over the past 40 years.
According to Ma’ariv, this estimate is included in an appeal by Danny Gillerman, president of the federation, to Prime Minister Yitzhak Rabin, in which he suggests requesting the American administration to try to put an end to the boycott before convening the next round of peace talks.
The calculation of the damages to the Israeli market is based on the supposition that for the last 40 years, the Arab boycott prevented a growth of over $20 billion in Israeli exports. This is based on an estimate that every year the boycott precluded a possible growth of 10 percent in exports.
The addition of income in foreign currency could have covered the entire foreign debt of the state, which today stands at $24 billion, according to the economists.
The federation also estimated that the boycott cost Israel more than $24 billion in investments, assuming that the Arab boycott impeded investments amounting to 15 percent of the total investments in the country.
In his appeal to Rabin, Gillerman insisted that Israel not acquiesce to the continuation of the boycott and that this issue should be made a top priority in the coming peace talks.
In the wake of elections in Israel and prior to those in the United States, he emphasized, a window of opportunities has opened that allows Israel to demand from the United States immediate and resolute action towards the abrogation of the Arab boycott.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
