Bumps of "Paris" and its impact on our economy

As for after, and after 29 years have passed since the signing of the Paris Economic Protocol, and after the economic activity managed by the Palestinian Ministry of Economy these days towards amending the lists of imported goods, and on the anniversary of its signing on 04/29/1994, I found it necessary to write my article, realizing the importance of the roles of most people Those who worked on drafting the protocol and also the people who wrote about this protocol during the past three decades.

Israel was keen to subjugate the Palestinian economy to its control in order for it to continue to enjoy the benefits and gains arising from these practices. For this purpose, it pursued two paths simultaneously: the first, isolating the Palestinian economy from the outside world, both Arab and international, and making transactions with it in the narrowest possible way. possible range. The second is to make the Palestinian economy subordinate to the Israeli economy as a direct and sole option, and its policy has not changed since the occupation of 1967 to date. Although the Israeli occupation stands behind the decline in Palestinian economic performance and the regression of development because of its complete control over lands, resources, crossings, and borders, through which it was able to perpetuate the dependence of the Palestinian economy on the occupation economy, and prevented real development within this system.

Can we make a qualitative breakthrough in the content of the protocol, which will move us to a new phase of supporting the Palestinian economy? A question that haunts observers and the Palestinian private sector, but the attempt is valuable if we succeed in achieving its goal.

Before delving into the content of the document, which has always come out as a document in the form of a protocol and this document did not reach the concept of an agreement, this document is an integral part of the Oslo Agreement and not a separate agreement, so are we now opening the doors of negotiations again with the Israeli side?

Here I stop and inquire about a group of procedural issues that govern the relationship with the joint committee:

1- Were the procedures, rules, and methodology amended to those previously used? What is the decision-making mechanism in the joint committee, as the Paris Agreement stipulated that decision-making will take place by agreement? What does agreement mean?

2- As the Paris Agreement stipulated that lists of commodities be reviewed every 6 months, will a list be submitted that will be presented and we demand its completion after 6 months?

3- What is the reference of the joint committee if the two sides do not agree, or if the Israeli side refuses to implement what was agreed upon or procrastinates... as usual?

4- Who will compensate the private sector from the expected disruption from the Israeli side and from the guarantor?

The Protocol on Economic Relations between the Government of Israel and the Palestine Liberation Organization stipulated the following:

import policy:

“Israel and the Palestinian Authority have an almost identical policy with regard to imports and customs. However, the Palestinian Authority can import products with tariffs different from those applied in Israel following jointly agreed procedures. In addition, the Palestinian Authority can import products from Arab countries in limited quantities Agreed. Arrangements will be made for the two authorities to jointly manage the borders in Jericho and Gaza."

Direct taxes:

The Palestinian Authority applies its own policy of imposing direct taxes, including income tax on individuals and companies, property taxes, and municipal fees. According to the policy determined by the Palestinian Authority, the two parties collect taxes in economic activities that take place in their areas. Israel transfers to the Palestinian Authority 75% From the income tax you collect from Palestinians who work in "Israel".

Indirect taxes:

The Palestinian Authority applies a value-added tax system similar to that applied in Israel. Value-added tax rates in the Palestinian Authority range between 15 and 16%.

Fuel:

Fuel prices in the autonomous area are determined on the basis of the purchase price in the autonomous area and taxes imposed on fuel in the autonomous area. The agreement stipulates that the price of fuel cannot be less than 15 percent of the official price in Israel.

As for the text of the agreement, to establish a customs envelope that includes the Palestinian and Israeli economies, which enhances the permanent, broad and unequal ties between different economies, and here in this context it will lead to the loss of customs on goods produced in Israel or those that are re-exported to Palestine, especially since the main trade deficit for Palestine is With Israel, it is on the rise, as the value of imports, according to data issued by the Palestinian Central Bureau of Statistics, from Israel amounted to $1.561 billion during the first half of this year, or more than half of the total imports, which amounted to $2.254 billion. We are almost equal in value added, customs and fees despite the difference in living standards, economic conditions and income rates between individuals in the two countries. In addition to bank commissions, which are almost equal between Israeli banks and their Palestinian counterparts, as well as the linkage of Palestinian economic policies and procedures with the Israeli decision, and the requirement to carry out any development programs or projects with approval and coordination with the Israeli side.

Suggestions I present to the Palestinian official authorities:

First: - The current stage begins with activating the work of the Joint Economic Committee on the right basis, so that we guarantee the foundations of the decision "the agreement", and make a guarantor reference that guarantees the commitment of the Israeli side to strictly implement the terms of the agreement. I also recommend working vigorously to start buying fuel from the surrounding Arab countries / Neighboring.

Second: Work to establish customs clearance areas to be managed by the Palestinian side, and work to establish them next to the commercial crossings with the Israeli side. And the implementation of all measures to reduce customs duties on inputs to mechanisms to ensure production of high quality and low cost.

Third: Work to activate the developmental activity in trade exchange between Palestine and the Arab countries, through supporting and activating the Palestinian-Arab economic integration initiative.

Fourth: Inviting investment through Palestinian embassies in all countries to encourage attracting Palestinians from the diaspora to participate in the development of the Palestinian economy, by encouraging them to establish new companies in industry and agriculture with local partners, with tax exemptions.

Fifth: Work to transform the Paris Protocol into an economic agreement between two states based on clear economic foundations that guarantee the Palestinians freedom of trade with abroad.

Let us work together, public and private, towards building a free and resistant Palestinian economy.