For many years, the international community has attempted to improve trade between the Palestinian Territories and its trading partners. The argument behind these efforts is that trade will spur economic growth and that the ensuing prosperity is expected to prove more fertile ground for any peace endeavours. It is also considered to be a force of good because it would raise the quality of life of Palestinian economic operators. As a result, numerous studies, sponsored by various donors, have been carried out to map the obstacles for the Palestinian businessman and the predicament and possibilities of the Palestinian trade regime. The first purpose of this overview article is to disseminate the main results of these studies. A second objective is to explore three additional yet understudied avenues for improving Palestinian trade flows: (1) opening the Rafah crossing between Gaza and Egypt for exports; (2) introducing diagonal cumulation of origin; and (3) improving trade in services.
Journal of World Trade