EU close to trade deal with Palestinian Authority

BRUSSELS – The EU moved closer to a trade deal with the Palestinian Authority yesterday after unanimous backing from European…

BRUSSELS – The EU moved closer to a trade deal with the Palestinian Authority yesterday after unanimous backing from European lawmakers to fully open markets to farm and fish products from the West Bank and Gaza Strip.

The 27-0 vote by the European Parliament’s international trade committee paves the way for full parliamentary approval for a deal later this year, signalling EU support for the Palestinian Authority as it prepares to bid next month for statehood recognition at the UN.

While small – trade between the EU and the West Bank and Gaza was worth €60 million in 2009, of which just 10 per cent constituted Palestinian exports to the EU – the move represents an opportunity for exports to boost an economy weakened by conflict with Israel.

“This deal is enormously important. It gives more power to the Palestinians to trade directly with the EU. And it’s a signal of good will from the international community that comes at an important time,” said Maria Eleni Koppa, a Greek socialist lawmaker who led the committee’s discussion.

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The West Bank and Gaza mostly export vegetables, fruits and cut flowers to the EU, while the territories import EU machinery, chemicals and transport equipment.

The new deal will give Palestinian exporters unlimited duty-free access to European markets for farm goods and products as well as fresh and processed fish.

“For us this is one of the agreements that will help us build the economy of an independent sovereign state,” Majed Bamya, a Palestinian diplomat in Brussels, told Reuters.

The full European Parliament is due to vote on the trade agreement in late September.

Once approved, the deal needs final backing from EU member states and ratification by the Palestinian Authority. It is expected to enter into force before the end of 2011. – (Reuters)