Financial Crime World

UK Supports Palestinian Economic Development with New Agreement

Strengthening Trade Ties and Supporting Economic Growth

The United Kingdom has signed a new agreement with the Palestinian Authority (PA) aimed at supporting economic development in the region. The Political, Trade and Partnership Agreement will maintain preferential trade terms for Palestinian businesses and pave the way for continued cooperation between the UK and PA.

Key Benefits for Palestinian Businesses

  • Continued tariff-free access to the UK market
  • Simplified trade procedures allowing businesses to operate freely once the UK leaves the EU
  • Priority sectors such as fruit, nuts, and vegetable fats benefiting from preferential treatment

Infrastructure Development and Sector Reform

The World Bank (WB) has pledged funds for infrastructure development and sector reform. The WB will work with the PA to:

  • Identify key areas for investment
  • Implement reforms that promote private sector growth

The Office of the Quartet (OQ) has also received UK support, providing technical assistance in areas such as:

  • Clearance revenues
  • Electricity
  • Water
  • Movement and access issues

Trade Facilitation and Customs Programme

Cowatersogema International Inc. is implementing a new Trade Facilitation and Customs Programme aimed at increasing Palestinian exports by improving the movement of goods and increasing the capacity of trade-related institutions and private firms.

Palestinian Business Community

The Palestinian business community is highly entrepreneurial, with a strong desire for professionalism and product quality. Despite challenges, large enterprises have established global partnerships and a highly educated labour force has developed skills in technologies and practices needed to succeed globally.

Human Rights and Labour Laws

  • The PA’s Basic Law protects key rights related to work, including the right to form trade unions and strike
  • However, some provisions remain unimplemented, such as basic collective bargaining and dispute resolution mechanisms
  • The International Labour Organisation (ILO) is working with the PA to amend the Labour Law to raise the minimum age of work from 15 to 16 years

Bribery and Corruption

  • Bribery is illegal in Palestine, and efforts have been made by the PA to strengthen its legal framework against corruption
  • However, nepotism and “wasta” (connections) remain issues, and businesses are advised to exercise caution when dealing with government officials

Organised Crime

While there is limited evidence of serious organised crime in the West Bank, vehicle thefts and drug-related crimes do occur. Businesses are advised to take precautions against these risks.

Intellectual Property

  • The PA does not have a modern Intellectual Property Protection Law
  • Separate applications must be filed for each class of goods and services in each jurisdiction (West Bank and Gaza)
  • Businesses are advised to consult legal experts when dealing with intellectual property issues in Palestine

For more information on doing business in Palestine or seeking assistance from the British Consulate General, please visit our website at [insert website URL].