By Maha Abdel Hady, IOL Palestine Correspondent

RAMALLAH, September 30 (IslamOnline) - A Palestinian study indicated that 168 out of 232 Palestinian companies have completely stopped exporting due to the three-year Israeli watertight siege clamped on the Palestinian people.

According to the study, conducted by the Palestinian Trade Center "Pal Trade" marking the second anniversary of Al-Aqsa Intifada, the production capacity of all exporting companies in the Palestinian territories dropped to 32 percent from 82 percent prior to September 28, 2000. This, the study asserted, cost a total loss of around 42 million U.S. dollars.

According to the study, the loss of every company of the 168 that stopped exporting amounts to 146 thousand U.S. dollars, differing from one company to the other.

The companies operating in the industry domain, which make up 82 percent of the total exporting companies, incurred the biggest losses. The remaining 18 percent are those of information technology, services, trade, agriculture and others.

Palestinian industrial facilities and exporting companies in particular are suffering because of the Israeli blockade, continued measures, shelling and destruction which prompted dozens of companies to close down and threatens still operating companies to lose markets, including the local market.

Israeli practices have forced 30 exporting companies to shut down or declare bankruptcy, inflicted direct damage to 62 percent of operating companies and indirect damage to more than 95 percent.

Jordan, the Arab Gulf, Europe, the United States, Russia, Iraq, Arab Maghreb and Turkey are the most important markets for Palestinian exporting companies. Exporting to these markets constitutes between 8 to 12 percent of the companies' total production.

This ratio does not include products exported to the Israeli market which went up to 67 percent from 61 per cent before the outbreak of the Intifada.

Under incessant Israeli aggressions, Palestinian exportation to the outside world has almost come to a complete hiatus.

Exporting companies have also lost a major share of the local market, especially with spiraling production costs caused by high shipment costs and scarcity of raw materials.

The hurdles placed by Israel before the movement of citizens and commodities between Palestinian towns are the major obstacles before Palestinian exporting companies. The Israeli closure of borders is also a major obstacle impeding the completion of deals.

Matters which add salt to the wounds of Palestinian companies include irregular delivery of raw material needed for the industry, hardships Palestinian workers face to get to their work places, liquidity crisis and bank reservation on granting loans and financial credits.

According to the study, Palestinian exporting companies rely more on local raw materials due to the difficulty of importing them from outside. Around 48 percent of the exporting companies used to import raw materials from abroad before the Intifada, but the percentage stands now at 50 percent.

The companies had scaled down reliance on imported raw material to 23 percent compared to 26 percent before the Intifada.

The ratio of exported Israeli raw materials also went down to 27 percent from the previous 32 percent.

According to the study, 72 percent of workers in Palestinian exporting companies are unable to regularly reach their work places.

The rate of work days for West Bank employees has come down to less than 15 days a month.

Palestinian workers also suffer career insecurity because of the hazy future of Palestinian exporting companies. The number of workers in these companies has, therefore, dropped by 40 percent since the unleashing of the Israeli aggression following the eruption of the Intifada.

The number of Palestinian workers in exporting companies before the Israeli aggression was put at 9,500 with a ratio of 37 workers for each company. This figure has at present gone down to 22.