Israel recognizes European - Palestinian economic agreement
An official Israel source said that Israel has principally decided for the first time to recognize the free trade agreement signed between the European Union and the Palestinians.
A senior Israeli official, who asked not to be identified, said the government of Israeli Premier Benjamin Netanyahu hopes that against such recognition, the European Union will put an end to any attempt to abrogate the customs advantages of products from Jewish settlements which are exported to European markets.
Western diplomats accredited in Tel Aviv received this Israeli decision with "great caution," noting the disputes over the production of the settlements is still far from being resolved. Israel wants the economic accord it signed with the Palestinian Authority in Paris in 1994 to be the terms of reference and its items to have priority on articles of the European-Palestinian accord.
The high-ranking Israeli official added that the decision was taken last Sunday before Netanyahu headed for New York. He was expected to have met on Wednesday with the deputy chairman of the European Commission, Manuel Marin, who is in charge of this file.
So far, Israel has refused to recognize the agreement signed in 1996 between the EU and the PLO. The agreement was ratified by the EU in 1997. The Israeli rejection comes because the agreement considered the West Bank and Gaza Strip as " independent customs zones."
The Israeli official noted that the Europeans had actually tried to give a push to the process of establishing a Palestinian state, even before negotiations on the final status of the Palestinian territories had started. The negotiations will address this case.
The Israeli official said Israel abrogated its rejection of the agreement in order to "alleviate tension" with the Europeans and to convince them to give up "imposing fees on the production of settlements in the West Bank and Gaza Strip because such a policy is in contradiction with the principles of the World Trade Organization."
The European Commission had recommended excluding goods produced by Israeli settlements from tax advantages offered to Israel, because such facilities cover only the territories of the state of Israel, which is internationally recognized rather than the West Bank, Gaza and the Golan.
The Europeans had also repeatedly accused Israel of obstructing the agreement between the European Union and the Palestinians. They, in particular, held Israel responsible for obstructing the Palestinians from opening the port and airport of Gaza.