Financial Crime World

UK-Palestine Trade Agreement Boosts Economic Cooperation

In a significant move to strengthen economic ties, the United Kingdom and Palestine signed a landmark agreement on February 18, 2019. The Political, Trade and Partnership Agreement has officially taken effect since January 1, 2021, paving the way for increased trade cooperation between the two nations.

Key Provisions

  • Maintains duty-free access to EU markets for Palestinian industrial goods
  • Introduces additional provisions for trade in goods, services, competition, and intellectual property
  • Simplifies trade and enables businesses to operate more freely
  • Delivers significant savings for Palestinian producers, particularly those in priority sectors such as fruit, nuts, and vegetable fats

Trade Facilitation and Customs Programme

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

  • Designed to address unique challenges faced by Palestinian businesses
  • Supports growth of small and medium-sized enterprises (SMEs), which account for a significant proportion of the Palestinian economy

Human Rights and Labour Standards

The agreement highlights the importance of human rights and labour standards in the Palestinian territory. The PA’s Basic Law protects key worker rights, including:

  • Right to form trade unions and strike
  • Fair working conditions and social benefits

However, concerns remain regarding bribery and corruption, with the International Labour Organisation urging reforms to strengthen labour laws and protect workers’ rights.

Security Concerns

Traders and investors operating in the region should be aware of ongoing security risks, particularly in Gaza, where the UK government advises against all travel due to terrorist activity.

Organised Crime and Intellectual Property

  • Limited signs of serious organised crime in the West Bank
  • Drug-related issues persist, with cannabis-based drugs being a particular concern
  • PA lacks a modern intellectual property protection law, making it essential for businesses to register separate applications for each class of goods and/or services in each jurisdiction

Getting in Touch

The British Consulate General in Jerusalem is available to provide guidance on trade, investment, and commercial opportunities in the region.