PA Policy is Coherent With
the Paris Protocol

An article appeared in Ha'aretz newspaper on Tuesday May 26,1998 entitled "Trade federation attacks PA for its embargo on Israeli goods "by Zohar Biumenkrantz.

The article, among other things, quoted the president of The Israeli Federation of Chambers of Commerce, Dan Gillerman, as saying that a PA announcement "declared the severance of economic links with Israel... and forbade the distribution of Israeli goods in the PA territories and East Jerusalem, unless done via Palestinian agencies.." and "has begun to confiscate goods distributed by non Palestinian agencies.." and "PA has essentially annulled the Paris agreement and declared and economic embargo on Israel".

The Palestinian Ministry of Economy and Trade declares that these allegations are false, groundless, and totally fabricated- No embargo has been declared on Israeli products, and no goods without a Palestinian agent have been confiscated. As for Palestinian agents of imported products, it is the PA's prerogative and long standing policy to ask the Palestinian private sector to obtain direct agencies for their imports- This being in the economic interest of the Palestinian private sector and concurs with laying "the ground work for strengthening the economic base of the Palestinian side and for exercising its right of economic decision making in accordance with its own development plan and priorities" (The Paris Protocol-Preamble).

Dan Gillerman's distortion of facts through his vengeful statement can only be seen within the context of repeated threats made by Israeli officials against the Palestinian economy in light of the recent EC decision not, to grant preferential treatment for Israeli products originating in settlements, East Jerusalem, and the Golan Heights. It also fails in line with Gillerman's own vested interests, which are part and parcel of the general Israeli Policy of dominating the Palestinian market.

It should be clear that Israel has always blocked the concept of free movement of goods and people stipulated in the Paris Agreement. The PA has been adhering to the terms of the Paris Agreement. We cannot say the same for the Israeli side.