Trade Policy and Labor Services: Final Status Options for the West Bank and Gaza

39 Pages Posted: 13 Apr 2004

See all articles by Maurice Schiff

Maurice Schiff

Fellow, Institute for the Study of Labor (IZA)

Date Written: February 2004

Abstract

This paper considers the policy options of the West Bank and Gaza (WBG) with respect to trade and the exports of labor services. It concludes that i) a non-discriminatory trade policy (NDTP) is unambiguously superior to an FTA with Israel; ii) the WBG should pursue a NDTP with all its neighbors, but only under the condition that the trade policy be open, transparent, and enforced by a credible lock-in mechanism; otherwise, a CU with Israel may be preferable; iii) the PA should establish a system of fee-based permits for Palestinian labor working in Israel, and iv) the PA should consider allowing access by Jordanian workers to the WBG labor market.

Keywords: West Bank and Gaza, labor services, free trade agreement, customs union, unilateral liberalization

JEL Classification: F10, F15, F16, J30, J61

Suggested Citation

Schiff, Maurice W., Trade Policy and Labor Services: Final Status Options for the West Bank and Gaza (February 2004). Available at SSRN: https://ssrn.com/abstract=515923 or http://dx.doi.org/10.2139/ssrn.515923

Maurice W. Schiff (Contact Author)

Fellow, Institute for the Study of Labor (IZA) ( email )

Bonn
Germany

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