Peace deal in Middle East boosts trade hopes

Date: 05/11/1998

By Simon Taylor

EUROPEAN Commission officials are hoping the new peace agreement between Israel and Palestine could help overcome obstacles currently preventing Palestinians from taking advantage of a trade agreement with the EU.

Senior officials believe aspects of the accord reached in Wye Plantation late last month may offer ways to remove some of the practical barriers to Palestinian exports. They say issues relating to the Union's agreement with the Palestinians will be discussed at a meeting with high-ranking Israeli diplomats in Brussels tomorrow (6 November).

The meeting marks yet another attempt by Jerusalem to improve relations with the EU. Israeli Foreign Minister Ariel Sharon is planning to visit Brussels for the first time soon to explain his government's views on the Wye accord to EU foreign ministers.

At this week's meeting, Commission officials will receive a delegation of director generals from a range of Israeli ministries involved in trade with the Union.

The main aim of the meeting, which was requested by Jerusalem, is to discuss Israel's trade agreement with the EU. But Commission officials suggested that aspects of the Wye Plantation accord could also be raised.

One example of ways in which the Palestinians' trade problems could be eased is the commitment in the agreement to give them their own airport in Gaza. “This would be the first time that Palestinians had access to third country markets”, said one official.

Other areas of the Wye accord which could help the Palestinians include improving access from the West Bank and a pledge to move ahead with opening a seaport in Gaza.

The Commission has accused Israel of forcing the Palestinians to violate the terms of their 1997 agreement with the EU.

It claims Jerusalem put obstacles in the way of legitimate Palestinian exporters, who were forced to declare their products as Israeli in origin even though they came from areas such as the Gaza Strip and the West Bank, which were not internationally recognised as belonging to Israel.

But Israeli Prime Minister Benjamin Netanyahu told the Commission in September that he was prepared to recognise the agreement.