Against the background of a stalled Palestinian-Israeli peace process, the desire for political change and social justice that underlay the Arab Spring has given rise to repeated calls in the Palestinian Territories for the abrogation of the Paris Protocol, regulating their economic relations with Israel. In the absence of a physical border between the West Bank and Israel, the 'common customs envelope' of the PP was the only viable trade arrangement, dictating most of its other provisions. The actual operation of this effective customs union has been adversely affected by Israeli security measures, but so would have been also any alternative trade regime.
The near completion of the Israeli separation barrier allows for the operation also of less integrative trade arrangements. While a customs union remains the best Palestinian option economically speaking, it carries with it certain political drawbacks. In choosing among the various alternatives, the Palestinian government will be facing a trade-off between economic efficiency and political expediency.
Whichever its character, any future economic agreement will have to pay attention to issues that arose in the application of the PP, either for not having been properly dealt with there or because of situations unforeseen at the time. A particular difficulty might be posed by the future status of Jerusalem.
Event Details
Speaker: Professor Ephraim Kleiman, Hebrew University of Jerusalem
Date: Thursday 23 May 2013
Time: 18.30 - 20.00
Location: Wolfson Theatre, New Academic Building, LSE
Attendance: This event is free and open to all on a first come first served basis
Speaker
Ephraim Kleiman is Don Patinkin Emeritus Professor of Economics at the Hebrew University of Jerusalem. His research interests over the years included international trade, public finance, and history of economic thought, as well as the role of wage and financial indexation under inflation.