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A Coca Cola factory is coming to Gaza A Coca-Cola factory is coming to Gaza
(about 2 hours later)
One of the most controversial aspects of Israel's policy on Gaza is economic: A blockade of the Palestinian territory began in 2007 after Hamas gained control of the region. Most experts agree that it has had a dramatic effect on life in the region (over the summer, the Economist said the siege had made Gaza "the world's biggest open-air prison") yet many also argue that it has failed to achieve its aims of weakening Hamas.One of the most controversial aspects of Israel's policy on Gaza is economic: A blockade of the Palestinian territory began in 2007 after Hamas gained control of the region. Most experts agree that it has had a dramatic effect on life in the region (over the summer, the Economist said the siege had made Gaza "the world's biggest open-air prison") yet many also argue that it has failed to achieve its aims of weakening Hamas.
In this light, the impending opening of a Coca Cola factory in Gaza seems important. Reuters reports that Palestinians – with Israeli approval – began importing machinery for the factory on Monday. The plant is expected to open in 2015 and will provide hundreds of jobs for Palestinians, Emad al-Hindi, director-general of the Palestinian National Beverage Company, told the news service. In this light, the impending opening of a Coca-Cola factory in Gaza seems important. Reuters reports that Palestinians – with Israeli approval – began importing machinery for the factory on Monday. The plant is expected to open in 2015 and will provide hundreds of jobs for Palestinians, Emad al-Hindi, director-general of the Palestinian National Beverage Company, told the news service.
There are already three Coca-Cola franchises in the West Bank, and a Pepsi factory in Gaza, but this marks the first time Coca Cola has appeared in the region. “We’ve been shipping to Gaza on a regular basis with the approval of the Palestinian Authority and the Israeli authorities,” Zahi Khouri, chairman of the Palestinian National Beverage Company told the Jerusalem Post in November. “It made commercial sense to have a plant [in Gaza] so we could sell the product at a much a lower cost.” There are already three Coca-Cola franchises in the West Bank, and a Pepsi factory in Gaza, but this marks the first time Coca-Cola has appeared in the region. “We’ve been shipping to Gaza on a regular basis with the approval of the Palestinian Authority and the Israeli authorities,” Zahi Khouri, chairman of the Palestinian National Beverage Company told the Jerusalem Post in November. “It made commercial sense to have a plant [in Gaza] so we could sell the product at a much a lower cost.”
It was no easy task: The company needed approval from the Palestinian Authority and the Israeli Defense Forces, Khouri told the Jerusalem Post. The company pays taxes only to the West Bank-based PA rather than the Hamas-controlled Gaza government, in part to get around terror financing laws.It was no easy task: The company needed approval from the Palestinian Authority and the Israeli Defense Forces, Khouri told the Jerusalem Post. The company pays taxes only to the West Bank-based PA rather than the Hamas-controlled Gaza government, in part to get around terror financing laws.
The timing is important. While the plan to build the Coca Cola factory predates it, the dramatic conflict in Gaza this summer had a dire economic impact on Gaza's already fragile economy. The Washington Post's William Booth, reporting from Gaza in August, noted that hundreds of factories in the region appeared to be heavily damaged after Israeli strikes. Some suspected this was a deliberate policy, though Israel denied this. The timing is important. While the plan to build the Coca-Cola factory predates it, the dramatic conflict in Gaza this summer had a dire economic impact on Gaza's already fragile economy. The Washington Post's William Booth, reporting from Gaza in August, noted that hundreds of factories in the region appeared to be heavily damaged after Israeli strikes. Some suspected this was a deliberate policy, though Israel denied this.
“I’m 45 years old. To be honest, I always thought of the Israelis as having morals and good sense. This time, I am positive, they hit our factories with intent, with a clear eye,” factory owner Ayman Hamada told The Post. “The Israelis don’t make these kinds of mistakes.”“I’m 45 years old. To be honest, I always thought of the Israelis as having morals and good sense. This time, I am positive, they hit our factories with intent, with a clear eye,” factory owner Ayman Hamada told The Post. “The Israelis don’t make these kinds of mistakes.”
International corporations have faced criticism in the past by operating in Palestinian territories. WorldViews readers may be familiar with the case of SodaStream's factory in the West Bank, for example, which was especially controversial due to the fact it was located in an Israeli settlement (SodaStream recently announced that it would be relocating this factory).International corporations have faced criticism in the past by operating in Palestinian territories. WorldViews readers may be familiar with the case of SodaStream's factory in the West Bank, for example, which was especially controversial due to the fact it was located in an Israeli settlement (SodaStream recently announced that it would be relocating this factory).
Coca Cola has been criticized for a perceived support for Israel, and is one of the most prominent targets of the “Boycott Israel” movement. That the construction of the Coca Cola plant comes at a time when so many feel that broader reconstruction efforts are failing may only adds to the tension: Gisha, an Israeli human rights group, recently told the Financial Times that just 130,000 tons of construction materials entered Gaza, far from the 5 million tons needed. Coca-Cola has been criticized for a perceived support for Israel, and is one of the most prominent targets of the “Boycott Israel” movement. That the construction of the Coca-Cola plant comes at a time when so many feel that broader reconstruction efforts are failing may only adds to the tension: Gisha, an Israeli human rights group, recently told the Financial Times that just 130,000 tons of construction materials entered Gaza, far from the 5 million tons needed.