Paris Agreement Israel Palestine

Paris Agreement Israel Palestine

The Protocol on Economic Relations, also known as the Paris Protocol, was an agreement between Israel and the PLO, signed on 29 April 1994 and introduced with minor amendments in the Oslo II agreements of September 1995. The agreement sets out the means to achieve its ambitious goals, requiring all parties to communicate nationally defined contributions (INDC). INDCs are national measures to combat climate change to reduce greenhouse gas emissions, in which countries define the measures and the type of assistance they need or will provide to combat climate change. The State of Palestine is currently preparing its INDC, which will be presented to the Secretary-General. The agreement provides that Palestinian trade with other countries would continue to pass through Israeli sea and air ports or through border crossings between the Palestinian Authority and Jordan and Egypt, also controlled by Israel. The need for Israeli authorization for trade results in considerable economic losses for the Palestinians if Israel imposes a significant closure of the occupied territories and removes all relevant authorizations, as was often the case between 1994 and 1997. The Paris Protocol, also known as the Economic Relations Protocol, was hailed as a milestone after the Oslo Accords signed seven months earlier. The agreement provided that the Palestinian economy would be merged by a customs union with the Israeli economy, with Israel controlling all borders. The PLO had originally called for a free trade area to give more autonomy to the Palestinians, but the request was rejected, allowing Israel to circumvent the issue of borders and the illegal presence of settlers in the occupied Palestinian territories.

The protocol stipulates that the Israeli currency, the New Shekel of Israel (NEI), is used in the Palestinian territories as a circulating currency, which is legally used as a means of payment for all purposes and is accepted by the Palestinian Authority and all its institutions, local authorities and banks. Palestinians are not allowed to adopt their own Palestinian currency independently of each other. [6] Imports from third countries and exports to third countries, including quantitative restrictions, are subject to Israeli scrutiny[7] and the protocol has given Israel exclusive control over external borders and the collection of import taxes and VAT. The agreement provides that Palestinian trade with other countries would continue to pass through Israeli sea and air ports or through border crossings between the Palestinian Authority and Jordan and Egypt, also controlled by Israel. [5] From 2016, the Rafah crossing will be controlled by Egypt, but Egypt supports the blockade of the Gaza Strip. The Paris Protocol remains to this day the economic framework for relations between Israel and the Palestinian Authority, even after the second intifada (the Palestinian uprising that began in 2000) and Israel`s plan to withdraw from the Gaza Strip.

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