The Economic Agreement with Israel

The Paris Protocol (PP) concluded in April 1994 and the Washington Agreement signed between the PLO and Israel in September 1995 set the procedures & regulations governing economic relations between WBGS and Israel for the interim period.

Bilaterally, the economic agreement states the basic principles of free trade with Israel .

  As for third party trade, the Paris Protocol regulates the relations between the WBGS and the rest of the world as follows:

• Palestinian products are not subject to any export restrictions.
• Trade to and from WBGS has full access to Israeli ports of entry and exit.
• Palestinian imports and exports are granted equal treatment at the Israeli ports of entry and exit except from security measures.
• As for the import policy, the Israeli regulations on customs, purchase tax and standards apply to Palestinian imports with the exception of goods listed in A1, A2 and B (Please see table below).  The PNA has the right to apply, within pre-defined quotas, its customs rates, purchase tax and other import charges on those imports.  In addition, the PNA has the autonomy in importing goods listed in A1 and A2 regardless Israeli standard requirements.
• A result of applying the Israeli import policy is that bilateral trade agreements between Israeli and other parties are considered valid in WBGS.  Currently, Palestinian traders can benefit from free trade agreements with Slovakia, Hungary, Turkey and the Czech Republic .
• Israeli import policy prohibits trade with several countries, mainly those that do not have diplomatic relations with Israel , including a number of Arab States.  The only exception to the WBGS is represented by imports in list A1, A2 and B.
• The PLO has the freedom to negotiate and conclude Trade agreements, for the benefit of the PNA, as long as the same import policy is applied in Israel and WBGS.