GAZA, Sept. 12 (Xinhua) -- Palestinian observers and analysts believe that both the smuggling tunnels that were dug underneath the borderline between Egypt and the Gaza Strip ruled by Islamic Hamas movement, or a future free trade area at the borders with Egypt, are serving the movement's interests.

To punish Hamas and oblige it to accept international requirements, mainly recognizing Israel and the signed interim peace deals, Israel imposed a tight blockade on the Gaza Strip, where it was tightened after Hamas had violently seized control of the coastal enclave in June 2007.

After Hamas had taken full responsibility of ruling the narrow, densely populated and impoverished enclave, its leaders called for opening the borders with Egypt for free trade ties with the Arab world to end dependence on Israel which imposes the blockade and controls the crossings with the Gaza Strip.

However, Hamas rule, which is not an entity recognized by the Arab World or the international community, can rule the populations' daily affairs and organize the under-ground trade movement in the tunnels, but it can not be part of an official agreement signed with Egypt to run the free trade area.

The London-based Saudi Arabian Daily of Al Sharq Al Awsat on Wednesday quoted well-informed Palestinian sources as saying that progressed talks have been held between Hamas rule and the Egyptian government in relation to establishing the free trade area on the borders between Gaza and Egypt.

The sources said that the main obstacle that obstructs the implementation of the project is the Palestinians' internal division, "because Egypt can't sign the protocol with Hamas government without the acceptance of President Mahmoud Abbas and the Palestinian National Authority (PNA)."

TUNNELS TO BE USELESS

Mekhemer Abu Se'da, the political science professor in Gaza- based al-Azhar University, told Xinhua that once Rafah border crossing is expanded and has a free trade area between the Gaza Strip and Egypt, "certainly there will be no need for the smuggling tunnels which harmed the Palestinian economy."

Hamas leaders always defended the tunnels and said that the tunnels were opened to be the arteries of life for the Gaza Strip populations to compensate the lack of basic products and fuels that Israel was not allowing. But Abbas slammed the tunnels and said it created 800 millionaires in Gaza.

After the deadly attack in Sinai in August which killed 16 Egyptian soldiers, Hamas authorities and Egypt tightened the trade movement through tunnels, and tunnels owners said their business declined after Sinai's attack, adding that closing the tunnels and opening free trade area would be much better.

Economists have repeatedly warned that the tunnels had badly damaged the Palestinian economy and reduced Israel's moral and humanitarian responsibility towards the Gaza Strip populations, although it had destroyed dozens of it during and after its three- week war on the Gaza Strip in 2009.

"It is obvious that a free trade area between Gaza and Egypt would certainly serve Gaza Strip and Hamas movement's interests more than it serves Egypt's interests. Egypt would get rid of the tunnels' burden, and Hamas would gain more financial profits and legal income," said Abu Se'da.

HAMAS DEFENDS

Hamas movement's leaders and government's officials expressed readiness to shut down all the tunnels once the free trade area is established. They denied all reports that a free trade area it controls will mean that it plans to establish independent political entity.

Alladien Rafati, the minister of economy in the Hamas-run government in Gaza, told Xinhua that when the Palestinians in Gaza found no crossing for their basic needs, they decided to get what they need through the tunnels, "although tunnels were risky and its cost is very high, where a legal trade is better."

"We believe that the alternative to the trouble-making tunnels and end the people's suffering is to have the free trade area on the borders with Egypt," said Rafati, adding "the ties with Egypt are historic and a mutual trade is needed to defy the Israeli siege and empower our trade ties with the Arab world."

The well-informed sources told the Saudi Arabian newspaper that most likely Abbas will not accept a deal on a free trade area between Egypt and Gaza to be signed only between Hamas and Egypt, without being part of a package deal that ends internal division.

NEW TIES WITH NEW EGYPT

The situation has changed in Egypt after the government of Hosni Mubarak was toppled in early 2011, when the Muslim Brotherhood is ruling the country. Hamas, an extension to the worldwide movement, has been trying to build up new strong ties with the new Islamic government in the country.

Even Egyptian President Mohamed Morsi and his government vowed to ease the measures at Rafah crossing and have better ties and cooperation with Hamas rule in the Gaza Strip, where analysts believe that there is now common interest between Hamas government and Egypt.

Naji Shurab, a Gaza-based political analyst told Xinhua that amid the new good ties between Hamas and Egypt, "I don't think that settling the issue of smuggling tunnels and opening a new free trade area instead would be very easy through economical ties and certain security arrangements."

"Within the coming few days, I believe that Egypt will officially declare lifting the siege imposed on the Gaza Strip and permanently open Rafah border crossing, while Egypt would justify this by claiming that Rafah crossing is under its full jurisdiction and it has the right to open it," said Shurab.

Closing the tunnels and opening a free trade area on the borders between Gaza and Egypt would help the Gaza Strip to build up a better economy, but it will increase the concerns that the free trade area controlled by Hamas would help it in the future to declare a state in the Gaza Strip.