Settlement expansion, enabled by discriminatory restrictions on Palestinians in the Jordan Valley, is destroying the viability of a future Palestinian state, a new report by the International humanitarian agency Oxfam said today. The report, "On the Brink: The Impact of Settlements on Palestinians in the Jordan Valley," says the Jordan Valley, in the occupied West Bank, has the potential to be the Palestinian bread basket, yet restrictions on Palestinians use of land, water, and on building in the valley are keeping them poor while helping nearby Israeli settlements thrive. By one estimate, the Palestinian economy could gain an additional $1 billion a year in agricultural revenue if the restrictions on Palestinian use of land, water, and mobility in the Jordan Valley were removed. According to Oxfam, the poverty rate for Palestinian communities in the Jordan Valley is nearly double that of the rest of the West Bank as many struggle to make a living from farming and animal rearing without adequate access to land. "Settlements and related Israeli policies, such as systematic demolitions and restrictions on land and water use, are creating a wretched reality for Palestinians in the Jordan Valley," said Oxfam International Executive Director Jeremy Hobbs. "The government of Israel has an obligation to keep all people safe, but such excessive restrictions on Palestinians inside the West Bank would not be necessary if Israelis were not settling there. These discriminatory policies and practices have pushed more Palestinians into poverty and are destroying the prospects for two states living side by side in security and peace," Hobbs said. The report calls on Israel's largest trading partner and the biggest donor to the Palestinians, the European Union and its member states, to take urgent action to press the government of Israel to immediately stop building settlements and end the demolition of Palestinian structures, including homes, animal pens, water cisterns, and solar panels. The EU has an opportunity to move beyond statements as Jose Manuel Barroso, the current President of the European Commission, is set to visit Israel and the West Bank in the coming days and the highest level meeting between the European Union and Israel, the EU – Israel Association Council will take place later in this month. "World leaders have long been saying the right things, but strong words alone are not helping the Palestinian farmers and herders who live in the Jordan Valley develop their own economy and build the infrastructure necessary for positive community growth," he said. Oxfam's call comes on the heels of the European Union's unprecedented statement, made on 14 May, against demolitions carried out in Israeli controlled parts of the occupied West Bank. Since that time, Palestinians have seen no meaningful change on the ground, as the government of Israel demolished at least 59 Palestinian structures and 34 Palestinian families were displaced when their communities were used as the site for an extensive military training in an area of the Jordan Valley where Oxfam works. Oxfam said the situation is likely to deteriorate further unless action is taken now. Year 2011 saw a 20 percent rise in new settlement construction across the West Bank as compared to 2010. Over the same period, the number of Palestinians displaced by demolition doubled, with 60 percent of these demolitions carried out in areas close to settlements.