EU and the Palestinian territories: course of relations

1. An interim Association Agreement entered into force in 1997.
The Association Agreement covers the following areas:

  • Building an appropriate environment for a Euro-Palestinian dialogue
  • Liberalization of the trade sector
  • Strengthening economic relations
  • Contributing to the economic and social development of the West Bank and the Gaza Strip
  • Encouraging regional cooperation
     

Interim Association Agreement

2. An Action Plan, within the framework of the European Neighborhood Policy, was presented and agreed on in 2004. It stipulates, among other issues, the following measures:

  • Intensifying efforts in order to resolve the Israeli-Palestinian conflict
  • Consolidating dialogue and cooperation
  • Establishing an efficient judicial system
  • Reinforcing institutions
  • Implementing an efficient public finance system
  • Developing commercial relations
  • Improving the cooperation in the field of transport
  • Reinforcing democracy and the state of law
  • Supporting the educational system


Action Plan

3. EU funding (European Commission) promised and paid in:

  • 2000 to 2005: € 280 million as an average per year
  • 2006: € 340 million
     

4. The EU + the EU state members funding:
2006: € 696 million
 

5. The European Investment Bank loans:

  • € 204 million (1996-2003)
  • € 55 million (2004-2009)

 
6. EU fields of action in the Palestinian Territories:

  • Humanitarian aid
  • Consolidation of peace
  • Justice
  • Environment
  • Agriculture
  • Health
  • Civil society
  • Culture
  • Private sector
  • Refugees
  • Education


List of Projects

7. Beneficiaries: public institutions, private sector, education sector, cultivators, Ministry of Justice, municipalities, NGOs…
 

8. Export to the EU (27 countries)*

Year 2003 2007
Amount ($ million) 7.41 19.28
Export to the EU/Total export 3% 4%

*Approximate statistics (due to the uncertain political status)
 

9. Import from the EU (27 countries)

Year 2003 2007
Amount ($Million) 32.78 63.93
Import from the EU/Total import 2% 2%

*Approximate statistics (due to the uncertain political status)

10. European direct investments *: € 85 million euros for the period 2003-2008, which constitutes approximately 14% of the foreign direct investments in the Palestinian Territories. 

* From the following countries: Germany, Austria, Belgium, Denmark, Spain, Finland, France, Greece, Italy, The Netherlands, UK and Sweden. (Source: ANIMA-MIPO)