The Need for a Rule-Oriented Israeli-Palestinian Customs Union: The Role of International Trade Law and Domestic Law

Netherlands International Law Review, Vol. 44, pp. 315-345, 1997

16 Pages Posted: 12 Sep 2011

See all articles by Talia Einhorn

Talia Einhorn

Tel Aviv University - Faculty of Management; Ariel University

Date Written: 1997

Abstract

The agreements entered into between Israel and the PLO reflect "their determination to put an end to decades of confrontation and to live in peaceful coexistence, mutual dignity and security". The Economic Protocol was a step in the right direction on the road to peace. The deterioration of the state of security after the signing of the Agreement mandated restriction of the free movement of persons. The establishment of a customs union was the best option available to the negotiating parties. It offered administrative simplicity while allowing the Palestinians access to the largest market in the region, a factor vital for their economic growth. A new economic order should have been established, enabling each party to make the most of its comparative advantage.

The conditions for a viable customs union are: (1) It must be rule-oriented. A mode of sharing the import revenues has to be determined rather than have Israel and the Palestinians compete for them. Import monopolies must be dismantled, anticompetitive behavior forbidden and State intervention in the economy minimized. (2) A legal environment must be created in the Territories controlled by the Palestinian Authority to support a private sector operating in an undistorted market. There is a need for legal rules that govern commercial transactions and the settlement of disputes. These rules should be transparent, ascertainable and enforceable in a fair and efficient manner.

This paper examines the Israeli-PLO Protocol on Economic Relations and the troublesome features of the customs union(1) in their the historical context(2). It analyzes the various international trade law sets of rules that the parties could have chosen, concluding that the customs union was the preferable one(3), the required domestic law rules(4), the critical role of individual rights(5), as well as the conditions for a customs union that will promote peace through trade(6).

Keywords: customs unions, international economic law, human rights, competition law, Israel-Arab conflict

Suggested Citation

Einhorn, Talia, The Need for a Rule-Oriented Israeli-Palestinian Customs Union: The Role of International Trade Law and Domestic Law (1997). Netherlands International Law Review, Vol. 44, pp. 315-345, 1997, Available at SSRN: https://ssrn.com/abstract=1925486

Talia Einhorn (Contact Author)

Tel Aviv University - Faculty of Management ( email )

P.O. Box 39010
Ramat Aviv, Tel Aviv, 6139001
Israel
+972548181540 (Phone)

HOME PAGE: http://taliaeinhorn.com

Ariel University ( email )

Ariel
Israel
+972-54-8181540 (Phone)

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