Steinitz (L) and Netanyhu
Photo: EPA
'Israel, PA financial agreement near'
Sources in Ramallah say secret talks to result in revision of tax-collecting mechanism
Secret talks between the Treasury and the Palestinian Ministry of Economy and Trade are nearing a breakthrough that may lead to an agreement on upgrading financial ties between Jerusalem and Ramallah, Palestinian sources said.
PA Economy
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According to a Yedioth Ahronoth report, published Sunday, the months-long negotiations are aimed at updating the Paris Protocol, signed between the PLO and Israel in 1994. In accordance with the agreement, Israel collects import taxes on goods from other countries and transfers to the Palestinian Authority the taxes on goods that were intended for the territories.
The current talks are aimed at revising this tax collection mechanism, Palestinian sources said, but the sides do not plan on replacing the mechanism. International elements have suggested that Israel and the Palestinian Authority sign a free trade agreement.
Finance Minister Yuval Steinitz suspended the talks during the PA's failed attempt to seek full United Nations membership, but the negotiations were recently resumed.
If finalized, the agreement would be the first between the Palestinian Authority and Prime Minister Benjamin Netanyahu's government.
Speaking to Yedioth, Treasury officials acknowledged that talks were being conducted, but denied a breakthrough.
