Israel reduced cargo flow to the Hamas-ruled Gaza Strip to 28 percent compared with that before the blockade on the territory in June 2007, a Palestinian report said on Saturday.

The daily rates of what Israel allows into Gaza through its commercial crossing points "form 28 percent of what was allowed in before the siege," according to the report released by the Palestinian Trade Center (Paltrade).

The Israeli closure followed Islamic Hamas movement's violent takeover of the coastal Strip from security forces loyal to moderate Palestinian President Mahmoud Abbas.

Since then, Israel used to allow limited amounts of food, fuel, grain and medicine into Gaza through three commercial crossings.

During the first ten days of May, 1,095 trucks entered Gaza via the three crossings, comparing with nearly 400 trucks every day before June 2007, the report said.

Hamas, for the first time, licensed contraband that comes from underground tunnels between Gaza and Egypt in a bid to overcome the Israeli sanctions.

However, experts said the smuggled goods will give negative effects on the way of campaigning against the Israeli blockade.

"The smuggled goods are sold by double prices, and when foreigners see them in Gaza markets they would believe Israel's claims that it allows more amount to enter through the crossings," said Omar Hamad, the head of the Palestinian Industries Federation.

(Xinhua News Agency May 17, 2009)