Not so smooth an issue

The Ministry of Agriculture has prohibited the import of olive oil, for this year at least, having decided that there is more than enough locally produced olive oil to cover the market needs, and opening the local market to imports of this product would depress local prices and undermine the sustainability of local olive oil producers, making it near impossible for them to make ends meet.

The policy is consistent with the one used vis-à-vis the agricultural produce from neighbouring countries, including the West Bank, which is to turn imports on and off, depending on the national circumstances.

While it may make sense, to a certain degree, in the case of imports, be they of industrial or agricultural products, from most markets, the import of goods from the West Bank, including olive oil, warrants a different treatment, at least to some extent.

The economy of the Palestinians is very closely connected with Jordan; it depends on the Jordanian market to survive the rigours of the Israeli occupation, and a blanket policy discouraging Palestinian products renders their life and steadfastness much more difficult.

It makes sense to want to protect local producers of olive oil from unfair competition from Arab or other countries, but such policy is harmful to olive oil producers in the West Bank, whose output is very limited in any case and does not really pose a threat to local production.

Applying some tariffs on olive oil imported from the Palestinian territories would be a middle course to follow, rather than applying a total ban on its import.

Besides, a little bit of competition would be good for the consumer. As is, due to the lower production of olives this year, stakeholders expect a rise in olive oil prices, speculating that the 16-litre olive oil container will sell for JD80-90, a price that does not make the product easily affordable to many.

Protectionism may make sense when wishing to help the local economy. But it would make better sense, in trade — and particularly knowing the good quality of the Jordanian olive oil — to let olive oil producers export, maybe through their association, and allow the market to regulate itself by allowing imports as well.