Despite numerous protests from the Palestinian side, the Paris Agreements signed in 1994 continue to constitute the framework for the main economic agreements between Israel and the Palestinian Authority, including the Gaza Strip. Israel controls the customs regime, thus there is no import duty on goods imported from Israel to the occupied territories, while there is on goods imported from abroad.
International aid organizations are required to provide humanitarian aid in the most efficient way possible. They must purchase the cheapest food available to aid the greatest number of people within their budget. Though food is cheaper in Jordan and Egypt, food imports from Jordan and Egypt to the occupied Palestinian territory are taxed. The taxes, in principle, go to the PA coffers, but this cannot be a consideration for the aid organizations. Instead, they are required to purchase most of the goods they distribute from Israeli companies, unless importation from another country, including import taxes, will still be cheaper than the price in Israel.
Additionally, Israeli security regulations require aid organizations to use Israeli transportation companies and vehicles, since Palestinian companies are not allowed to enter Israel to pick up goods from airports or sea-ports. Even more significant is the fact that the Palestinians do not have their own currency or central bank: financial assistance must be given in New Israeli Shekels. The foreign currency remains in the Bank of Israel, and Israeli commercial banks collect numerous service charges along the way.
What this means, in fact, is that Israel exports the occupation: as long as the international community is willing to contribute financially to prevent a humanitarian crisis in Gaza, Israeli companies continue to supply them with goods and services and receive payment in foreign currency. [x]