Abbreviations used include: IMF Report – Zavadjil, M., Calika, N., Kanaan, O., Chua, D., Recent Economic Developments, Prospects, and Progress in Institution Building in the West Bank and the Gaza Strip (Washington D.C., International Monetary Fund 1997);Google Scholar PA – Palestinian Authority; PLO – Palestine Liberation Organisation; the Territories – the West Bank (Judea & Samaria) and Gaza Strip; UNSCO Report – United Nations Office of the Special Coordination in the Occupied Territories, Economic and Social Conditions in the West Bank and Gaza Strip: Quarterly Report Winter Spring 1997 (Gaza, UNSCO 1 04 1997);Google ScholarWorld Bank Report – Developing the Occupied Territories: An Investment in Peace, (The World Bank,Washington D.C.09 1993), a six-volume series communicating the results of a study of the Multilateral Working Group in Economic Development, supported by die World Bank, at me request of the sponsors and organisers of me Middle East Peace Talks.Google Scholar

1. Annex V of the Israeli-Palestinian Interim Agreement on the West Bank and the Gaza Strip, Kitvei Amana (Israel Treaty Series) 1071, pp. 281–384. According to its preamble, the Interim Agreement replaced die three preceding agreements signed with the PLO: the Gaza-Jericho Agreement signed in Cairo, 4 May 1994; die Agreement on Preparatory Transfer of Powers and Responsibilities signed at Erez, 29 August 1994; and the Protocol on Further Transfer of Powers and Responsibilities signed in Cairo, 27 August 199S.Google Scholar

2. The agreements signed between Israel and the PLO and their background are analysed by Blum, Y.Z., ‘From Camp David to Oslo’, 28 Israel Law Review (1994) p. 211;Google ScholarPodeh, E., ‘The Arab-Israeli Peace Process’, 18 Middle East Contemporary Survey (1994) p. 46 at pp. 46–52.Google Scholar For an insight into the events leading to the signing of the Declaration of Principles, cf., Cannon, Y., ‘The Story Behind the Handshake’, 98(3) Commentary (04 1994) pp. 25–29.Google Scholar

3. Cf., Einhorn, T., ‘The Customs Union between Israel and the Palestinian Autfiority: A Critical Analysis’, Bar-Ilan Law Studies 14 (1997) (in Hebrew) (forthcoming);Google ScholarGabai, Y., ‘The Agreement on Taxation and Tariffs between Israel and the Palestinians’, State Revenue Administration Report 1994, No. 44, pp. 261–273 (in Hebrew).Google Scholar

4. Three lists of goods, attached to the Protocol, have been excluded. See Kleiman, E., ‘The Economic Provisions of the Agreement between Israel and the PLO‘, 28 Israel Law Review (1994) pp. 347, 359;CrossRefGoogle Scholar cf., the analysis of the rules by Elmusa, S.S., El-Jaafan, M., ‘Power and Trade: The Israeli-Palestinian Economic Protocol’, 24(2) Journal of Palestine Studies (Winter 1995) p. 14.CrossRefGoogle Scholar

5. Council Decision 70/243 of 21 April 1970, subsequently replaced by Decision 85/257 of 7 May 1985, which was in turn replaced by Decision 88/376 of 24 June 1988, OJ L 185/24 (Arts. 2(l)(a), 2(3)); Easson, A.J., Taxation in the European Community (London, Athlone 1993) pp. 3–4.Google Scholar

6. See e.g., Avneri, A., ‘An Autonomy of Smuggling’, Yedi'ot Aharonot Daily Newspaper (hereinafter: Yedi'ot Aharonot) 6 February 1996.Google Scholar

7. USDOC, ‘Gaza Trade Statistics Show Drop in West Bank-Gaza Turnover and Increased Reliance on Israeli Supplies and Markets’, December 1996.

8. UNSCO Report, p. 50.

9. Cf., Koren, O., ‘The Manufacturers, the Chambers of Commerce and the Ministry of Trade and Industry Request Peres to Discuss the Palestinian Boycott on Israeli Goods‘, Globes Daily Newspaper (hereinafter: Globes) 29 03 1996;Google Scholar‘The Israeli Iron Manufacturers are Concerned: The Palestinians are Starting Independent Importation‘, Ma'ariv Daily Newspaper (hereinafter: Ma'ariv) 16 04 1997;Google ScholarKoren, O., ‘The PA Will Prohibit the Distribution of Israeli Cigarettes as of January 1996’, Globes 5 December 1995.Google Scholar

10. Cf., Mestmaecker, E.-J., ‘Providing Fair Conditions of Competition Under the Free Trade Agreements of the European Economic Community‘, 3 Northwestern Journal of International Law and Business (1981) p. 296.Google Scholar

11. See further Mestmaecker, E.-J., ‘CanTherebeaEuropeanLaw?’, 2 Eropean Review(1994) p. 1 at pp. 11–12;Google ScholarMestmaecker, E.-J., ‘Staat und Untemehmen in Europaeischen Gemeinschaftsrecht: Zur Bedeutung von Art. 90 EWGV’, 52 RabelsZ (1988) p. 526;Google ScholarWhish, R., Competition Law, 3rd edn. (London, Butterworths 1993) pp. 330–346.Google Scholar

12. The contents of a circular dated 6 January 1996 and a communication dated 16 March 1996, both issued by the Palestinian Ministry of Economy and Trade and addressed to all international companies, are brought by Wertheim, M., ‘Can the Law Survive a Change in Political Sentiments?’ Justice, No. 12, 03 1997, p. 22 at pp. 24–25.Google Scholar

13. Cf., Wertheim, ibid., p. 26.

14. Cf., Salomon, S., ‘The Palestinians to International Trade Companies: Do Not Operate through Israeli Agents’, Telegraph Daily Newspaper 11 01 1996;Google ScholarKoren, O., ‘Palestinian Importers are Replacing Israeli Importers on the Israeli Market: Israeli Importers of Automobile Spare Parts Warn against Decrease of State Revenues’, Globes 5 February 1996;Google ScholarEshet, G., Shaked, R., ‘The Separation Policy’, Yedi'otAharonot 24 09 1996;Google ScholarHametz, S., ‘The Ministry of Trade and Industry and the Chambers of Commerce: The Trade Regulations of the PA – A Serious Blow to the Paris Agreement’, Ha'aretz Daily Newspaper (hereinafter: Ha'aretz) 24 09 1996.Google Scholar

15. Moshavi, S., ‘You Call this a Free Market?’, Business Week 7 04 1997.Google Scholar

16. Cf., Bergman, R., Ratner, D., ‘The Man who Swallowed Gaza’, Ha'aretz Friday Supplement 4 04 1997, at 18–27;Google ScholarDempsey, J., ‘Poor pickings in Gaza for Palestinian entrepreneurs: Monopolies are stifling small businesses’, Financial Times 3/4 May 1997;Google ScholarLotenberg, I., Koren, O., ‘Mr. five percent’, Globes 16 February 1996;Google ScholarDachs, G., ‘Staat der Staatenlosen: Arafats Cliquenwirtschaft hemmt die Entwicklung von Markt und Demokratie’, Die Zeit 16 May 1997; according to R. Bergman, the monopoly for the importation of gravelstone is controlled directly by the security services, and me income derived finances their activities.Google Scholar

17. Bergman, Ratner, ibid.; Arad, N., ‘Three tons of cheese were caught on their way from the autonomy’, Yedi'ot Aharonot 2 June 1996.Google Scholar In mis case, tens of tons of ‘La Vache Qui Rie’ cheese were imported as Hebron-bound. They were reported to have been lost in a fire, a claim against the insurers accordingly brought, yet seem to have surfaced in Israel later on.

18. For a report of such a cooperation between an Israeli importer and a Palestinian one see Danon, I., Koren, O., ‘Israel Transmitted to the Palestinians Millions of NIS, Based upon False Documentation’, Globes 8 October 1997.Google Scholar

19. Dempsey, supran. 16; Hass, A., Drinking theSeaat Gaza, (Israel, Ha'kibbutz Ha'meuchad 1996) pp. 358–362 (in Hebrew).Google Scholar

20. IMF Report, p. 17.

21. Cf., part 4 of this article hereunder regarding the legislation in the Territories.

22. World Bank Report, vol. 2: The Economy, pp. 11–14.

23. Malanczuk, P., ‘Israel: Status, Territory and Occupied Territories’, 12 Encyclopedia of Public International Law (1990) p. 149 at pp. 170–171;Google ScholarBlum, Y.Z., ‘The Missing Reversioner: Reflections on the Status of Judea and Samaria’, 3 Israel Law Review (1968) p. 279 at p. 288.CrossRefGoogle Scholar

24. Malanczuk, P., ‘Jerasalem’, 12 Encyclopedia ofPublic International Law (1990) p. 184 at p. 193.Google Scholar

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28. Bergmann, supra n. 27, p. 47.

29. Mansour, supra n. 27, pp. 71–72.

30. Bergmann, supra n. 27, p. 47; cf., also Abu-Amr, Z., ‘The Gaza Economy: 1948–1984’, in Abed, G.T., ed., The Palestinian Economy (London, Routledge 1988) p. 106.Google Scholar

31. Cf., Bergmann, supra n. 27, pp. 46–48; cf., also Roy, , supra n. 27, pp. 264–265.Google Scholar

32. Mansour, supra n. 27; Bergmann, , supra n. 27, pp. 57–58.Google Scholar

33. Mansour, supra n. 27.

34. Roy, , supra n. 27, pp. 262–263;Google ScholarAbu-Amr, Z., ‘The Gaza Economy: 1948–1984’, in Abed, G.T., ed., The Palestinian Economy (London, Routledge 1988) pp. 101–120.Google Scholar

35. Abu-Amr, ibid., pp. 101–102.

36. Roy, , supra n. 27, p. 265.Google Scholar

37. Abu-Amr, , supra n. 34, pp. 105–107.Google Scholar

38. This figure is taken from the World Bank Report, vol. 4: Agriculture, p. 6.

39. Abu-Amr, , supra n. 34, pp. 104, 109.Google Scholar

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41. Abu-Amr, , supra n. 34, p. 110.Google Scholar

42. Abu-Amr, ibid.

43. Abu-Amr, ibid.

44. Abu-Amr, ibid., p. 113.

45. Abu-Amr, ibid., p. 113; Bergmann, , supra n. 27, p. 77;Google ScholarRoy, , supra n. 27, p. 263.Google Scholar

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49. Abu-Amr, , supra n. 34, p. 116.Google Scholar

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51. Cf., Awartani, H., ‘Palestinian-Israeli Economic Relations: Is Cooperation Possible?’ in Fischer, S., Rodrik, D., Tuma, E., eds., The Economics of Middle East Peace: Views from the Region (Cambridge, MA, MIT 1993) p. 281 at p. 282;Google ScholarElizur, Y., Economic Warfare: The Hundred-Year Economic Confrontation between Jews and Arabs (Israel, Kinneret 1997) pp. 171–173 (in Hebrew).Google Scholar

52. Elizur, , supra n. 51, pp. 165–167.Google Scholar

53. Elizur, ibid., pp. 168–170.

54. Statistical Abstract of Israel 1987, p. 724, Table XXVII/23.

55. Zakai, D., The Economic Development in Yehudah, Samaria and the Gaza Strip 1985–1986, (Jerusalem, Bank Israel – The Research Department 198) p. 14.Google Scholar

56. World Bank Report, vol. 4: Agriculture, p. 1; Bergmann, , supra n. 27, pp. 48–57;Google ScholarRoy, , supra n. 27, pp. 264–269.Google Scholar

57. World Bank Report, vol. 4: Agriculture, p. 8.

58. World Bank Report, ibid.

59. Elizur, , supra n. 51, p. 186.Google Scholar

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62. Zakai, ibid.

63. National Accounts of Judea, Samaria and the Gaza Area 1968–1986 (Central Bureau of Statistics – Special Series No. 818), p. 60.

64. Zakai, , supra n. 55, pp. 26–31; World Bank Report, vol. 2: The Economy, pp. 10–11.Google Scholar

65. World Bank Report, ibid.; cf., Hass, , supra n. 19, pp. 166–168.Google Scholar

66. Statistical Abstract of Israel 1995, No. 46, Table 27.1; cf., also World Bank Report, vol. 2: The Economy, p. 11.

67. World Bank Report, vol. 1: Overview, p. 5.

68. Statistical Abstract of Israel 1995, No. 46, Table 27.1.

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70. Zakai, ibid.; cf., also World Bank Report, vol. 2: The Economy, p. 11.

71. World Bank Report, ibid.

72. Roy, , supra n. 27, pp. 269–272.Google Scholar

73. Roy, , supra n. 27, p. 274.Google Scholar

74. Cf., Awartani, , supra n. 27, p. 411.Google Scholar

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80. Cf., World Bank Report, vol. 2: The Economy, p. 33.

81. World Bank Report, ibid.; Dror, Y., Infrastructure in the West Bank and Gaza, (Tel-Aviv, The Armand Hammer Fund for Economic Cooperation in the Middle East/Tel-Aviv University, 11 1992) (in Hebrew).Google Scholar

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83. Elizur, , supra n. 51, pp. 175–189;Google ScholarCassesse, A., ‘Powers and Duties of an Occupant in Relation to Land and Natural Resources’, in International Law and the Administration of Occupied Territories, supra n. 27, pp. 419–442;Google Scholar for the Palestinian point of view cf., I. Matar, ‘Exploitation of Land and Water Resources for Jewish Colonies in the Occupied Territories, ibid., pp. 443–457.

84. Cf., World Bank Report, vol. 2: The Economy, p. 27; Arnon, A., Gottlieb, D., ‘An Analysis of the Palestinian Economy: The West Bank and the Gaza Strip, 1968–1991’, 69 Bank of Israel Economic Review (1996) p. 44.Google Scholar

85. Elizur, , supra n. 51, p. 186–188.Google Scholar

86. Cf., Statistical Abstract of Israel 1995, pp. 750 (Hebrew), 120 (English) regarding Judea, Samaria and the Gaza Area.

87. World Bank Report, vol. 2: The Economy, pp. 11–14, 93.

88. World Bank Report, ibid., p. 36.

89. World Bank Report, ibid., pp. 2, 94; cf., Roy, S., ‘The Political Economy of Despair: Changing Political and Economic Realities in the Gaza Strip’, 20(3) Journal of Palestine Studies p. 58 at pp. 59–60 (Spring 1991), regarding the widespread support for Saddam Hussein.CrossRefGoogle Scholar

90. Statistical Abstract of Israel 1993, Table 5.1; World Bank Report, vol. 2: The Economy, pp. 94–95.

91. Statistical Abstract of Israel 1995, Table 27.25.

92. Statistical Abstract of Israel 1995, Table 27.25.

93. Elizur, , supra n. 51, pp. 191–195;Google Scholar cf., also Roy, S.M., ‘Gaza: New Dynamics of Civic Disintegration’, 22(4) Journal of Palestine Studies (Summer 1993) p. 20.CrossRefGoogle Scholar

94. UNSCO Report, p. 1; Statistical Abstract of Israel 1995, Table 27.25.

95. Cf., Roy, , ‘Gaza: New Dynamics of Civic Disintegration’, supra n. 93, p. 22;Google ScholarRoy, , ‘Separation or Integration: Closure and the Economic Future of the Gaza Strip Revisited’, 48(1) Middle East Journal (Winter 1994) pp. 11, 15.Google Scholar

96. World Bank Report, vol. 1: Overview, p. 5.

97. UNSCO Report, pp. 56–57.

98. UNSCO Report, p. 53.

99. Elizur, , supra n. 51, p. 196.Google Scholar

100. Cf., Litvak, M., Berkhess, E., ‘Palestinian Affairs’, 18 Middle East Contemporary Survey (1994) p. 132 at pp. 135–138.Google Scholar

101. Elizur, , supra n. 51, pp. 199–202.Google Scholar

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103. Binder, U., ‘It Feels as if We Live on the North Border’, Ma'ariv 3 April 1994;Google ScholarFishman, A., ‘The Ripped Seam’, Yedi'ot Aharonot 15 December 1995;Google ScholarElush, H., Dotan, N., ‘Thefts: a Real Threat to the Existence of Agriculture on the Border-Line’, Moledet January 1996 pp. 98–99;Google ScholarBrener, D., ‘The Members Are Required to Pursue the Thieves’, Ma'ariv 20 March 1997.Google Scholar

104. Bhatia, S., ‘Hot Cars Bring Cool Cash from Gaza Palestinians’, Observer (London) 24 12 1994.Google Scholar It has been reported that stolen cars are used by the Palestinian police: Barak, B., ‘A Senior Intelligence Officer of the Israeli Police Confirms: the Palestinian Security Forces Drive Stolen Israeli Vehicles’, Yedi'ot Aharonot 16 September 1994;Google ScholarBohadna, E., ‘The Palestinians: We Shall Return Stolen Cars in Exchange for Refund of Taxes Collected by Israel’, Ma'ariv 2 October 1994;Google ScholarLevin, E., ‘The Palestinian Authority Has Offered to Pay Ransom to Legitimate Stolen Vehicles’, Globes 15 April 1997.Google Scholar According to the article the PA has offered to pay the Association of the Israeli Insurance Companies a lump sum for 15,000 vehicles, provided that no more complaints will be made regarding stolen cars. The offer has been rejected, according to the report, for fear that such a settlement may encourage future thefts; Markus, Y., ‘When Chich Calls Tibi’, Ha'aretz 6 June 1997.Google Scholar According to this report, S. Lahat (‘Chich’), the former Mayor of Tel-Aviv, upon discovering that his car had been stolen, turned to Dr. Tibi, Arafat's adviser, and recovered his car in less than two hours. The article raises doubts whether car thefts from Israel to the Territories has become so well organised that it takes Arafat's adviser to return a car; Baron, G., ‘A Jump in Number of Car Thefts in Israel this Year‘, Yedi'ot Aharonot 5 November 1997.Google Scholar

105. UNSCO Report, p. 56; The issue of building a new port in Gaza, to alleviate the problems created by closures, is outside the scope of this article. The port would facilitate direct import and export to the Gaza Strip, yet pose serious security problems for Israel (control of the direct import of armaments). The port would also aggravate the problems caused by the competition between Israel and the PA over the revenues from imports. The World Bank Report raised doubts regarding the economic viability of such a new port, and suggested that the issue be assessed in the regional context. Cf., World Bank Report, vol. 5: Infrastructure, p. 76.

106. Cf., Levine, M., ‘Palestinian Economic Progress Under the Oslo Agreements’, 19 Fordham International Law Journal (1996) p. 1393 at p. 1405; UNSCO Report, pp. 1–2, 6.Google Scholar

107. Cf., MAS (The Palestine Economic Research Institute) Policy Notes: Standards of Living in the West Bank and Gaza Strip, Issue No. 4, September 1996; Roy, S., ‘“The Seed of Chaos, and of Night”: The Gaza Strip after the Agreement’, 23(3) Journal of Palestine Studies (Spring 1994) p. 85.CrossRefGoogle Scholar

108. Elizur, , supra n. 51, p. 198.Google Scholar

109. Sa'ar, R., ‘A Ministers’ Committee approved recommendations to restrict foreign workers to 17,500’, Ha'aretz 16 April 1997. The Committee has also decided to increase the number of work permits issued to Palestinians to 70,000 by the end of 1997, 30,000 of whom will also be licensed to work during border closures.Google Scholar

110. Shaked, R., ‘Arafat Revoked the Legal Rules Introduced by Israel in the Autonomy; Singer: He is in Breach of the Agreement’, Yedi'ot Aharonot 25 May 1994;Google ScholarShehadeh, R., ‘Questions of Jurisdiction: A Legal Analysis of the Gaza-Jericho Agreement’, 23(4) Journal of Palestine Studies (Summer 1994) p. 18 at p. 23.CrossRefGoogle Scholar The scope and content of some of the legal rules applied by Israel to the Territories is discussed by Benvenisti, E., Legal Dualism: The Absorption of the Occupied Territories into Israel (Boulder, Westview 1990).Google Scholar The military orders introduced, inter alia, changes motivated by welfare considerations, e.g., the institution of public health services; the changes introduced by Israel in the tax system are detailed by Sharon, E., “The Tax System in Judea, Samaria and Gaza Prior to the Establishment of the Autonomy’, in State Revenue Administration Annual Report 1994No. 44, pp. 275–283Google Scholar (in Hebrew); cf., also Rabah, J., Fairweather, N., Israeli Military Orders in the Occupied Palestinian West Bank 1967–1992 (Jerusalem, Jerusalem Media & Communication Centre 1993); World Bank Report, vol. 5: Infrastructure, p. 18.Google Scholar

111. Cf., Weiner, J.R., ‘Hard Facts Meet Soft Law – The Israel-PLO Declaration of Principles and the Prospects for Peace: A Response to Katherine W. Meighan’, 35 Virginia Journal of International Law (1995) p. 931 at p. 950.Google Scholar

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113. Koren, O., ‘The Chambers of Commerce: it Appears that as a Rule Businessmen in the Territories Fail to make Payments to Israeli Businessmen‘, Globes 11 December 1995. According to the article, this problem has also affected trade relations maintained regularly over a prolonged period; A. Avneri, ‘Concern over the Fate of the Cooperation Agreements and Collection of Debts’, Yedi'ot Aharonot 3 September 1996; World Bank Report, vol. 3: Private Sector Development, p. 4.Google Scholar

114. Inbar, A., ‘The bill will be presented to Israel’, Globes 28 January 1994.Google Scholar The electricity, water and telecommunications services have been given to the local municipalities, who in turn provided them to the population. However, the municipalities have not paid the bills.

115. World Bank Report, vol. 1: Overview.p. 13; vol. 2: The Economy, p. 56; vol. 3: Private Sector Development, p. 3; cf., Levine, supra n. 106, p. 1400.

116. World Bank Report, vol. 1: Overview, p. 13.

117. IMF Report, p. 8.

118. IMF Report, p. 23; cf. also UNSCO Report, p. 28.

119. Haetzni, N., ‘Gaza on the Brink of Bankruptcy’, Ma'ariv 5 May 1995;Google Scholar Bergman, Ratner, supra n. 16; Moshavi, S., ‘You call this a Free Market?’, Business Week 7 April 1997;Google ScholarHirst, D., ‘Shameless in Gaza’, Guardian Weekly 27 April 1997.Google Scholar According to the article out of the $74 for which a ton of cement is sold in Gaza, $17 goes to the PA, and $17 into Mr. Arafat's own account in a Tel-Aviv bank; Turki, Fawaz, ‘Arafat's Awful Reign’, Washington Post 21 May 1997;Google Scholar G. Dachs, supra n. 16.

120. Cf., Roy, S., ‘Economic Deterioration in the Gaza Strip, Middle East Report (July- September 1996) pp. 36, 38.Google Scholar

121. Peace Watch Report 3/97 – Corruption as a System of Governance, p. 3. The report points out that the closures are necessary for the monopolies to prosper. The report also relates that, whereas the Israeli Civil Administration eventually licensed the establishment of a cement plant in Hebron, and a group of entrepreneurs from Hebron and Shekhem have organised to invest in it, the PA, shortly after coming into office, revoked the licence and instead established monopolies to import cement from the Israeli monopoly and from a plant in Jordan.

122. IMF Report, p. 17.

123. IMF Report, p. 19.

124. N. Kanafani, Professor of Economics at the Royal Veterinary and Agricultural University in Copenhagen, Palestinian – Israeli Trade Relations (1): Free Trade Area or Customs Union? MAS (The Palestine Economic Policy Research Institute) Policy Notes, Issue No. 1, August 1996; Samir Huleileh, PA Assistant Deputy Minister of Trade, views this a political rather than economic reason for establishing an FTA, since it would allow the Palestinians to define their relationship with third countries and the international market independently – Palestinian – Israeli Trade Relations (2): Trade Policy Options for the West Bank and Gaza Strip, MAS (The Palestine Economic Policy Research Institute) Policy Notes, (September 1996) Issue No. 2.

125. World Bank Report, vol. 1: Overview, p. 14.

126. N. Kanafani, supra n. 124; cf., also the comments of S. Huleileh, supra n. 124.

127. S. Huleileh, ibid.

128. Cf., Art. 9(2) EC Treaty.

129. World Bank Report, vol. 1: Overview, p. 14.

130. Cf., Einhorn, T., The Role of the Free Trade between Israel and the EEC: the Legal Framework for Trading with Israel between Theory and Practice (Baden-Baden, Nomos 1994) pp. 15–20.Google Scholar

131. Cf., E. Sadan, ‘Durable Employment for the Refugee-populated Region of Gaza‘, paper presented at the Middle East Multilateral Conference at the Centre for International Relations, University of California, Los Angeles, June 5–8 1993, published in Practical Peace-Making in the Middle East: the Environment, Water, Refugees and Economic Cooperation and Development (New York, Garald 1995).Google Scholar

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133. Cf., E.Sadan, ‘Sourcing Alliances and Open Market Transactions: TradeinGoodsbetween Israel. Jordan and the Palestinian Economy’, in Roy, S., Pfeifer, K. eds., The Economic Ramifications of Peace in the Middle East: Research in Middle East Economics, vol. 3 (forthcoming) (Cambridge, MA, Harvard 1997);Google Scholar E. Sadan, ‘Durable Employment for the Refugee-populated Region of Gaza‘, supra n. 131; Awartani, , ‘Palestinian-Israeli Economic Relations: Is Cooperation Possible?’, supra n. 51, pp. 288–289.Google Scholar

134. Cf., Sadan, ‘Sourcing Alliances and Open Market Transactions: Trade in Goods between Israel, Jordan and the Palestinian Economy’, supra n. 133.

135. See Toward Free Trade in the Middle East, supra, n. 132, p. 15.

136. Cf., Halevi, N., ‘Economic Implications of Peace: The Israeli Perspective’, in Fisher, S., Rodrik, D., Tuma, E., eds., The Economies of Middle EastPeace: Viewsfrom the Region (Cambridge, MIT 1993) p. 87 at p. 107;Google ScholarKanovsky, E., ‘Assessing the Mideast Peace Economic Dividend’, BESA (Begin-Sadat) Centre for Strategic Studies, Bar-Ilan University, Mideast Security Studies No. 15 1994 (in Hebrew);Google Scholar cf., also H. Awartani, S. Awad, Palestinian - Israeli Joint Ventures: Constraints and Prospects (Nablus, Department of Economics, Centre for Palestine Research and Studies) (April 1994) (in Arabic with an English summary).

137. Cf., World Bank Report, vol. 1: Overview, p. 13.

138. Cf., Belous, R. S., Lemco, J., “The Nafta Development Model of Combining High- and Low-Wage Areas‘, in Belous, R.S., Lemco, J., eds., NAFTA as a Model of Development (New York, State University of New York 1995) p. 6;Google Scholar I. Diwan, Regional Coordinator for the Economic Development Institute at the World Bank, ‘Three Questions, Three Options’, in Palestinian – Israeli Trade Relations (2): Trade Policy Options for the West Bank and Gaza Strip, supra n. 124.

139. Cf., Authorization of the President to make the proclamation, 104th Congress of the USA, 2nd session, 3 January 1996; The White House Office of the Press Secretary, Press Release 14 November 1996; 16(7) Middle East Business Intelligence, 5 April 1997.

140. OJ C 1997 128/1 (24 April 1997).

141. European Commission Memorandum on Trade and Economic Relations between Israel and the EC dated 24 July 1997, p. 3.

142. World Bank Report, vol. 1: Overview, p. 14.

143. Kliot, N., Water Resources and Conflict in the Middle East (London, Routledge 1994);Google ScholarSofer, A., Rivers of Fire: The Conflict of Water in the Middle Easf (Tel-Aviv, Am Oved/Haifa University 1992) (in Hebrew);Google ScholarStarr, J. R., Stoll, D. C., eds., The Politics of Scarcity: Water in the Middle East (London, Westview 1988);Google Scholar E. Kally, Options for Solving the Palestinian Water Problem in the Context of Regional Peace, Israeli-Palestinian Peace Research Project Working Paper Series No. 19, (The Harry Truman Research Institute for the Advancement of Peace, The Hebrew University of Jerusalem 1991–1992); Abdel-Rahman Tamimi, Water: A Factor for Conflict or Peace in the Middle East, Israeli-Palestinian Peace Research Project Working Paper Series No. 20, Arab Studies Society, Jerusalem Winter 1991/92; Fisher, F.M., An Economic Framework for Water Negotiation and Management (Cambridge, Harvard University, J.F. Kennedy School of Government 1 04 1994).Google Scholar

144. For an analysis of the injury caused to the rule of law by such regulated competition cf., E.-J. Mestmäcker, ‘Zwischen freiem und verwaltetem Wettbewerb – Möglichkeiten und Grenzen der Wettbewerbspolitik’, in Mestmacker, E.-J., Recht in der offenen Gesellschaft (Baden-Baden, Nomos 1993) pp. 667–672.Google Scholar

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146. Cf., Perla, D., Abdul-Hamid, R., Haller, M., Kalman, D., Intellectual Property Reform in the Palestinian Territories (Jerusalem, Israel/Palestine Centre for Research and Information (hereinafter: IPCRI) 1997);Google ScholarBahu, R., Melloul, E., Walsh, W., Banking Law Reform in the Palestinian Territories, (Jerusalem, IPCRI 1995).Google Scholar

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149. Molkner, supra n. 148, p. 31.

150. Kalman, D., Hamid, R. Abdul, Dahleh, M., Qayyum, A., Rasmussen, T. Nybo, Commercial Contract Enforcement in the Palestinian Territories (Jerusalem, IPCRI 1997).Google Scholar

151. Cf., The Israeli Information Center for Human Rights in the Occupied Territories (hereinafter: B'tselem), Annual Report of Violations of Human Rights in the Territories 1989 (Jerusalem, B'tselem 1989);Google ScholarB'Tselem, , Violations of Human Rights in the Territories 1990/91 (Jerusalem, B'tselem 1992);Google ScholarB'Tselem, , Violations of Human Rights in the Territories 1992/93 (Jerusalem, B'tselem 1994).Google Scholar

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153. Human Rights Watch World Report 1996, pp. 290–293; Amnesty International: Palestinian Authority Bulletin, 22 May 1997. According to the bulletin, broadcasts of sessions of the Palestinian Legislative Council are frequently jammed by the PA, as they often contain severe criticisms of the PA; B'tselem, , Punishment without trial, illegal arrest and torture of Palestinians residents of the West Bank by the Palestinian Security Services: Summary, (August 1995);Google ScholarShaked, R., ‘The investigation chambers of the Palestinian General Security Services’, Yedi'ot Aharonot 9 September 1994;Google ScholarShlain, H., ‘A ‘B’tselem investigator has been released yesterday from arrest in Ramalla’, Ma'ariv 4 January 1996.Google Scholar

154. Amnesty International: Palestinian Authority Bulletin 22 May 1997.

155. S. Ghazali, ‘Torture, Murder and Lies’, Associated Press 27 May 1997; The Palestinian Human Rights Monitor, ‘Deaths in Custody: 1st Quarter 1997’ (March- April 1997) Issue 2.

156. The Preamble to the Interim Agreement.