| 2 (2007) | |||||||||||||
Abstract | |||||||||||||
| This paper considers the policy options of the West Bank and Gaza (WBG) with respect to trade and the exports of labor services. It concludes that i) a non-discriminatory trade policy (NDTP) is unambiguously superior to an FTA with Israel; ii) the WBG should pursue a NDTP with all its neighbors, but only under the condition that the trade policy be open, transparent, and enforced by a credible lock-in mechanism; otherwise, a CU with Israel may be preferable; iii) the PA should establish a system of fee-based permits for Palestinian labor working in Israel, and iv) the PA should consider allowing access by Jordanian workers to the WBG labor market. * Thanks are due to Sebastien Dessus for the information provided and the useful discussions during the writing of the paper, to Elizabeth Ruppert Bulmer for her advice and detailed suggestions, and to Claus Astrup for his comments. The views expressed in | |||||||||||||
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