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Establishing a Framework for an Economically Viable Palestinian State

This document outlines an economic policy programme aimed at facilitating the establishment of a viable Palestinian state through the regulation of external trade. Key components include the development and implementation of essential domestic legislation, reform efforts, and accession to the World Trade Organization (WTO). The programme highlights the significance of the Foreign Trade Act of Palestine, providing a crucial legal framework for international trade relations. It emphasizes non-discrimination, transparency, and coherence between national and international laws to foster stability, security, and optimal economic development.

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Establishing a Framework for an Economically Viable Palestinian State

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  1. ECONOMIC POLICY PROGRAMME TOWARDS AN ECONOMICALLY-VIABLE PALESTINIAN STATE: The Regulation of External Trade Monday May 23, 2005 Grand Park Hotel, Ramallah Economic Policy Programme

  2. Towards a Sovereign Trade Framework: Main Components Domestic Legislation, Reform and WTO Accession Professor Thomas Cottier Economic Policy Programme

  3. This document is an output from a project funded by the UK Department for International Development (DFID) for the benefit of developing countries. The views expressed are not necessarily those of DFID. Economic Policy Programme

  4. Essential Elements • Membership to WTO • Need to establish essential legislation for the conduct of international trade relations: • Foreign Trade Act, Border regime and transit, TBT and SPS issues including a Food Safety Act and Technical Normative Infrastructure Law, Competition and Procurement Laws Economic Policy Programme

  5. WTO Membership • WTO Accession for Palestine provides a crucial framework for stable trade relations • It opens avenues for dispute settlement, protecting Palestinian interests • It opens avenues for technical co-operation and training of personnel • It provides the basis and framework for domestic trade-related legislation Economic Policy Programme

  6. The Foreign Trade Act of Palestine Economic Policy Programme

  7. Why a Foreign Trade Act ? • Defines jurisdictions in field of trade regulation (Who decides what?) • Defines the complex relationship to other laws and agencies (tariffs, TBTs agriculture, SPS/GMOs, services, intellectual property, competition, finance, telecom, etc), all affecting foreign trade • Explicit cross-referencing not necessary • A single act on all trade is impossible and cannot be found in any country Economic Policy Programme

  8. Why a Foreign Trade Act? • Most of the substantive trade rules today are defined by multilateral (WTO) and bilateral agreements (e.g. PLO-EU) • Domestic law remains important to establish the legal foundations for action in this field • for unilateral action • for action taken within the bounds of international agreements Economic Policy Programme

  9. FTAP Main Legal Principles • Non-discrimination: MFN and NT (WTO) • Prohibition of QRs, subject to exceptions (WTO, FTAP) • Proportionality (FTAP) • Transparency (WTO, FTAP) • Trade remedies, safeguards (WTO, FTAP) • Legality and judicial review (WTO, FTAP) • Consistent interpretation of national and international law Economic Policy Programme

  10. Compatibility With Constitution • Constitution as main legal basis of the State supersedes all other national law • FTAP has status of primary legislation • FTAP must respect basic constitutional provisions (structures and principles) • Special procedures possible • Question of Influence of Shari’a on trade (economic freedom / contracts) Economic Policy Programme

  11. Powers and Organisation • Legislative Council: Long term policy and treaty approval • President and Cabinet: Operational goals and coherence • Cabinet: Enactment of regulations and administrative decisions, subject to delegations to Ministry and Agencies • Possibility of provisional application of treaties Economic Policy Programme

  12. Administrative and Judicial Review • All decisions subject to administrative review by Minister of Trade • Judicial review by new Trade Court / Commission: • Relation to other Courts (penal provisions) • Advisory opinions possible • International arbitration • Additional roles of Trade Court / Commission Economic Policy Programme

  13. Conclusions FTAP as the legal umbrella in foreign trade matters brings: • Coherence of laws: national & international • Transparency • Rule of Law: security, stability and confidence building • Essential to optimal development of the Palestinian economy and State Economic Policy Programme

  14. ECONOMIC POLICY PROGRAMME TOWARDS AN ECONOMICALLY-VIABLE PALESTINIAN STATE: The Regulation of External Trade Monday May 23, 2005 Grand Park Hotel, Ramallah Economic Policy Programme

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