IPCRI Convenes Israeli-Palestinian-Jordanian Conference on Trade Policy
December 15, 1997
In September 1997, IPCRI convened a three-day conference
in Eilat for leading Israeli, Palestinian and Jordanian economic, legal
and policy experts on the subject of regional trade. The participants
included experts and officials from Jordan, Israel and the Palestinian
territories. During the course of the conference, concrete policy proposals
were jointly developed to improve the regulatory structure for encouraging
cross-border trade and investment in the Israeli-Palestinian-Jordanian
economic region. Many of the proposal developed at the conference have
subsequently already been implemented.
Since its initiation in 1993 with the signing of the Israeli-Palestinian
Declaration of Principles on Interim Self-Government Arrangements, the
peace process has relied upon the expectation that expansion of regional
trade and investment will increase employment and stimulate growth of
the three national economies most influenced by the peace process (Israel,
Jordan, and the Palestinian Authority). Such regional economic cooperation
can play an essential role in promoting, cementing and expanding peace
and development in the Middle East. However, the evolution of cooperative
economic policies among Israel, Jordan and the Palestinian Authority during
the past four years has been very limited. New economic ties among Israel,
Jordan and the Palestinian territories have not advanced as rapidly as
had been hoped. Basic functional structures for the future economic relationship
between the three parties have yet to be established.
Numerous contentious issues must be resolved, however,
before the regional economies can be opened to increased trade and investment
a level playing field and a balanced structure must be established in
which equitable and mutually beneficial economic activity can take place.
Although economic agreements and understandings have been negotiated between
Israel and the Palestinians, the Palestinians and Jordan, and Israel and
Jordan, these agreements are all bilateral and mostly provisional. Thus
far, no comprehensive, trilateral structure exists for regulating regional
trade and cooperation. Additionally, due to a variety of reasons and as
a result of unforseen events, most of the trades agreements have yet to
be properly and fully implemented.
The Israeli and Palestinian negotiators drafted and signed
the Paris Economic Protocol in the spring of 1994, in effect creating
a customs union and free trade area linking Israel and the Palestinian
territories. However, the introduction of the Kingdom of Jordan since
its peace with Israel, and the need to pursue issues that were left unresolved
in Paris or that have proved difficult to implement, calls for a comprehensive,
trilateral effort to establish a clear basis for facilitating cross-border
trade and investment flows in the region.
After decades of conflict and suffering, it is only through
the use of the peace accords to create mutually beneficial economic cooperation
that the peace process may ultimately be anchored in broad popular support.
There is still an historic window of political opportunity in which it
is possible to create a structure which will enable such constructive
interdependence to develop. Such interdependence will create within each
nation vested interests that will press for continued openness and progress
towards peace and regional stability. In order to take advantage of this
opportunity, initiatives must be developed to build consensus among regional
actors on the policies that must be collectively implemented in order
to create a fair, lasting and beneficial basis for economic cooperation.
IPCRI's work in this area brings together individuals who are capable
of initiating and sustaining such a process, under the umbrella of a unique
cooperative arrangement. IPCRI will continue to promote trust and professional
collaboration in developing concrete proposals for encouraging the expansion
of mutually beneficial intra-regional trade and investment flows.
Conference Participants
Israelis
Gabi Bar
Michael Jungreis
Hillel Adiri
Mandy Barak
Michaela Oren
Ezra Sadan
Simcha Bahiri
Yossi Barnai
Naftali Moser
Ministry of Trade and Industry
Ministry of Finance
Ministry of Agriculture
Federation of Chambers of Commerce
Israel Standards Institute
Economist
Economist
Israel Export Institute
Tride Foundation
Palestinians
Nasser Tahboub
Mahmoud Abu Samra
Hisham Dasouqi
Samir Huleileh
Hanna Siniora
Ministry of Finance
Ministry of Agriculture
Palestinian National Security
Businessman
Small and Medium Business Association
Jordanians
Muhsen Makhamreh
Elias Farraj
Omar Salah
Ghassan Omet
Mahmoud Najdawi
Mazen Khalaf
University of Jordan
Investment Promotion Corporation
Businessman
University of Jordan
Ministry of Agriculture
Jordanian Embassy, Tel Aviv
Foreign Participants
Hanspeter Tschaeni
Johannes Gerster
Henning Niederhoof
Heike Gruenwald
STIMENA
Konrad Adenauer Stiftung
Konrad Adenauer Stiftung
Konrad Adenauer Stiftung