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UK and Palestine Agree on Trade Deal to Boost Economic Development

The United Kingdom and the Palestinian Authority have signed a landmark trade agreement, aimed at increasing bilateral trade and economic development in the region. The Political, Trade and Partnership Agreement came into effect on January 1st, 2021, replacing the EU-Palestine Interim Association Agreement on Trade and Cooperation.

Key Features of the Agreement

  • Provides duty-free access to UK markets for Palestinian industrial goods
  • Phases out tariffs on UK exports to Palestine over a five-year period
  • Simplifies trade and allows businesses to operate freely in both countries
  • Significant savings for Palestinian producers in priority sectors such as fruit, nuts, and vegetable fats

Palestinian Business Community

The Palestinian business community is known for its entrepreneurial spirit, professionalism, and product quality. With a highly educated and multilingual labor force, the country is well-positioned to capitalize on global market opportunities.

Supporting Investment and Trade

  • Donor-funded credit guarantee facilities
  • Political risk insurance schemes to mitigate risks and support investment in key sectors

Scope of the Agreement

The agreement covers:

  • Trade in goods
  • Limited areas of services
  • Competition
  • Intellectual property
  • Wider cooperation between the two countries

Human Rights

  • The Palestinian Basic Law protects key rights in the sphere of work, including the right to form trade unions and strike, as well as the right to work and organize work in a way that ensures justice and welfare for workers.
  • Ongoing efforts to amend the Labor Law to raise the minimum age of work from 15 to 16 years.
  • The International Labour Organisation has called for strengthening labor laws to improve working conditions and protect workers’ rights.

Bribery and Corruption

  • Corruption is illegal in Palestine, but efforts have been made to strengthen the legal and institutional framework against corruption.
  • Nepotism or “wasta” in public appointments remains a challenge.
  • The British government has provided guidance on bribery and corruption, as well as advice on how businesses can establish effective procedures to prevent corruption.

Terrorism and Security

  • Travel advisories are in place due to security risks, particularly in Gaza.
  • The UK Foreign, Commonwealth & Development Office advises against all travel to Gaza and recommends caution when traveling to the West Bank.
  • There is also a risk of organized crime, including drug-related offenses.

Intellectual Property

  • The Palestinian Authority does not have a modern Intellectual Property Protection Law.
  • Separate jurisdictions govern intellectual property in the West Bank and Gaza Strip.
  • Businesses are advised to file separate applications for each class of goods and/or services in each jurisdiction to obtain full protection across the OPTs.

Contact Information

For more information on doing business in Palestine, please contact: