Trade Policy and Labor Services: Final Status Options for the West Bank and Gaza
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.
|Date of creation:||Feb 2004|
|Date of revision:|
|Publication status:||published in: Journal of Economic Integration, 2003, 18 (1), 60 - 104|
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5084, National Bureau of Economic Research, Inc.
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