Palestinian economic diplomacy : planning for statehood

Abstract

This study aims to provide a user-friendly means of access and a guide to its relevance for PA policymakers, international players and other interested parties. With diplomatic and donor involvement in economic areas likely to accelerate at some stage, it is important that international efforts and the scoping of further work be informed by PA achievements to date and the substantial work completed. This study provides a basis for a coherent programme of preparations in the economic/trade domains both for a viable, independent Palestinian .state and for the negotiations with Israel. It demonstrates that it can fit into the implementation of trade-related reforms and assist in providing a foundation for a coherent programme of preparations for a WTO-compatible trade framework for an economically-viable Palestinian state, and the transition period. The work focuses, as a priority, on the minimum trade-related requirements on Day One of statehood. With regard to these minimum requirements, it indicates what has been achieved by the PA. The objective of this paper is to present a draft indicative work-plan and a coherent agenda for the essential trade-related activities, some are completed, most to be completed and implemented, in order to achieve a workable sovereign trade framework upon statehood. The present work is based on and is a reflection to the political and economic assumptions provided by the PA: •To build of an independent, viable Palestinian state with a separate customs territory; • To have political boundaries, territorial continuity and geographical contiguity, which is one of the major principles for an economically viable Palestinian State. •That East Jerusalem is to be the capital of the Palestinian state and be an open city with free movement of goods and people. Because of its position at the centre of the future Palestinian state, it will play a major role for all economic, cultural and health activities; and according to the international legitimacy the Palestinian state should include the 1967 occupied territories, West Bank including East Jerusalem and Gaza Strip. •To have no Israeli settlements on the territories; • To have open economic relations with Israel and other neighbours based on, and compatible with, WTO rules; • That economic relation with Israel will · be based on a Free Trade Agreement; there should be a transitional period that gives Palestinians the requirements to enable them to start the process of diversification of their trade.