OPINION

Political Warnings on the Developing Palestinian-Egyptian Economic Talks

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Beginning with the arrival of Palestinian Prime Minister Mohamed Shtayyeh at the end of May last year, the Egyptian capital Cairo has been the scene of visits by Hamas and Islamic Jihad delegations, including political leaders, as well as a number of official and party delegations from the Palestinian Authority.

It was noteworthy that the Hamas delegation’s visit to Cairo included political leaders as well as many members of the Gaza government, notably the head of the Government Action Committee. This brought to mind the Hamas-Fatah negotiations in Egypt in 2017. As a result of the negotiations, Hamas agreed to dissolve the Administrative Committee it established in Gaza in exchange for many economic improvements, such as the opening of the Rafah border crossing and the development of commercial and agricultural cooperation between Egypt and the Gaza Strip.

Moreover, the participation of Palestinian party delegations in the recent negotiations showed that the talks were not limited to Egypt’s relations with the Gaza Strip. It is noteworthy that immediately after the visit of the Hamas and Islamic Jihad delegations, Shtayyeh-led ministerial delegation from the Palestinian Authority uncharacteristically emphasized the need for economic improvement in Gaza soon after they returned from Egypt. On the other hand, the fact that this visit came in the wake of the Israeli attack on Gaza last May shows that the talks also included a security dimension.

The Memorandum of Understanding and the End of the Partition

The Egyptian leadership’s call for the parties of the Palestinian issue reflects its desire to restart bilateral talks between the two sides of the political divide in Palestine (Hamas and Fatah). Therefore, it is clear that the reconciliation is at the top of the agenda of the Cairo visits. In this context, the Egyptian administration has been making a concerted effort to bring the two sides’ perspectives closer through bilateral talks, and to this end, it has been trying to address a number of issues, such as the reconciliation of the two sides and the consolidation of the ceasefire with the occupation forces, which constantly hints at the possibility of an attack on Gaza, while presenting a project to strengthen economic opportunities in the Gaza Strip.

In the same context, the Egyptian government has previously sent several invitations to the Palestinian parties to discuss ways to achieve reconciliation and end the division. The last of these invitations came shortly after the Israeli attack in May 2021, and Palestinian delegations finally met with the parties in February this year.

In these talks, the Egyptian leadership has underscored the need to end the division and unify the Palestinian internal front, and today’s negotiations are based on this emphasis.

Despite the Egyptian leadership’s desire to end the Palestinian split, there is no immediate need to use various pressure options to reconcile the two sides and form a national unity government. Instead, it is trying to come up with some formulas to provide economic facilities to the Gaza Strip by involving the Palestinian Authority in cooperation that will push the two sides towards a relative and gradual rapprochement in the hope that this will be a fertile ground for reaching a compromise in the medium or long term. This is evident from the announced list of areas of economic cooperation, which appears to be the outcome of the recent Cairo negotiations.

Economic Cooperation and Concessions

The main topics on the agenda of the talks between the two sides were increasing economic cooperation and providing some facilities to the Palestinian people. The economic, trade, agricultural, education and health issues were discussed in both meetings. In addition to the delegation of Palestinian ministers, a number of Palestinian businesspeople also participated in the visit and held side meetings with their Egyptian counterparts. Therefore, a number of partnerships with Egyptian investors expected to visit Palestine have been finalized and it is believed that these investments will benefit both sides.

In this context, Abbas Kamil, the head of Egypt’s General Intelligence Directorate, and Palestinian Premier Mohamed Shtayyeh discussed a number of issues related to the Gaza Strip. According to a press release issued by the Palestinian Prime Ministry office, the meeting focused on alleviating the suffering of the people of Gaza, facilitating their passage through Rafah, increasing the efficiency and quality of the electricity connection between Gaza and Egypt, activating the Palestinian mobile phone networks in Egypt, examining the reconstruction process in the Gaza Strip, and exploring the possibility of establishing facilities for water desalination in the Gaza Strip.

Accommodations and Improvements are Another Aspect of the Blockade

Despite the positive emphasis in Palestinian Prime Minister Mohamed Shtayyeh’s statement on the visit, such as the development of economic cooperation between the two sides and Cairo’s willingness to facilitate the living conditions of the people of Gaza, there are a number of details in the political and security dimensions of the visit, which took place at a time of increased threatening rhetoric between the occupying state and Iran and Hezbollah.

One of Egypt’s agendas in the negotiations was the tensions with the occupation forces in the north. It is believed that Cairo sees no harm in putting pressure on Palestinian groups in the event of a possible multi-front conflict and preventing them from participating in this conflict against the occupation. This is because the maintenance of relative calm in Palestine in itself strengthens Egypt’s regional position. In this respect, Egypt has no intention of giving up its mediation role in the Palestinian issue, which it maintains due to historical experience and geographical proximity. But it has been criticized for not forcing Israel to fulfill the terms of the ceasefire, as it continues to violate ceasefire agreements.

In sum, Egypt’s opening of Rafah and its intention to pursue Egyptian projects in Gaza, including the expansion of housing, development and commercial projects, are positive. If these steps are taken, the conditions could be set for a significant boost to the Gaza economy in the medium and long term.

However, this would increase the Gaza Strip’s economic dependence on Egypt, which would double Cairo’s political leverage and ultimately make it more difficult for the leadership in Gaza to challenge the Egyptian leadership. It would also strengthen the Egyptian leadership’s position in favor of gradual reconciliation between the two parties (Hamas and Fatah).

On the other hand, the political price that Gaza would pay for the easing of the blockade could relieve Israel of its responsibilities as an occupying power, while at the same time deepening the Palestinian schism. This is because the improvements that Egypt could provide to Gaza could reinforce the idea of isolating Gaza from the Palestinian geographical enclave. But the opposite is also possible: economic-based agreements between Egypt and the Palestinian Authority could, in the long run, push the two sides towards reconciliation.

As for Egypt’s attention to the participation of the Palestinian government in Ramallah in such meetings, Cairo recognizes the importance of the internationally legitimate Palestinian government in Ramallah. That is why Cairo also tries to avoid any criticism from the Palestinians or the region. In addition to Cairo’s interest, the desire to improve its relations with Ramallah should be taken into account because Ramallah has slightly better options due to its political and geographical location.

Options for Palestine

The Egyptian proposal, while positive, comes with many political warnings. However, it is also true that the resistance groups in Gaza do not have a choice between acceptance or rejection. Therefore, ways should be sought to accept the Egyptian proposition without harming the current Palestinian situation. In other words, while the occupation seizes every opportunity to implement its various plans, care must be taken to ensure that these agreements do not give regional powers the possibility to pressure the resistance in Gaza or divert it from its national role. To this end, while accepting any offer, the factions in Gaza must be careful not to make any political concessions regarding the relations between Ramallah and the Gaza Strip. There is now a national expectation for Gaza to make more political arrangements, especially at the level of civil society and municipalities. Granting electoral legitimacy to these institutions (municipalities, trade unions and student communities) would reduce the extent of the political and economic pressures imposed by the occupation and the region.

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