Palestine initials free trade pact with EFTA

Palestine and the European Free Trade Association (EFTA) initialled on Friday a free trade agreement covering trade in industrial goods, sea products and processed agricultural goods.

The agreement is the product of two years of talks between Palestinian officials and EFTA, which includes Iceland, Liechtenstein, Norway, and Switzerland. It will be signed on November 30, 1998 and will take force on July 1, 1999.

"The agreement establishes free trade in industrial goods, fish and other marine products, as well as processed agricultural goods, taking into account the latest developments in the field of trade policy," an EFTA statement said.

The agreement includes structural adjustment provisions which can be applied to infant industries and some sectors undergoing restructuring or facing serious difficulties.

EFTA pledges to provide technical assistance to Palestine for the proper implementation of the agreement.

This is the 14th agreement between EFTA and a non-European union member. EFTA agreements in the region are with Israel, Morocco and Turkey.

EFTA said the agreement should be seen "as a contribution to boosting economic relations in the Mediterranean region."