Israel has set up five inter-ministerial teams for economic coordination for the disengagement plan. The teams will answer to the office of Vice Premier Shimon Peres. The teams will coordinate economic issues with the Palestinians, and handle inter-ministerial staff work in Israel, which until now had been handled by the National Security Council and the IDF.
The economic development team deals with issues and ventures intended to improve the economic circumstances in Gaza after Israel's withdrawal. In contrast to the past, Israel now believes that the Palestinians will carry out projects and ventures, with the involvement of the international community. Israel will only provide assistance in infrastructure and common interfaces, such as desalination facilities, sewage systems, another power station in Gaza, construction of hospitals, and employment solutions.
Since the government has decided that no Palestinians will be granted work permits in Israel after 2008, Israel wants to tighten trade links as an alternative to jobs in Israel, and to help Palestinians develop additional markets.
A second team deal with issues related to the planned Gaza port. At the recent Sharm el-Sheikh summit, Prime Minister Ariel Sharon promised that Israel would support the establishment of the port.
The third team will coordinate issues related to transit points, in view of the need to upgrade them to meet the needs for expanding trade between Israel and the Palestinians. The transit points are a bottleneck in the movement of goods, and the goal is to improve service.
The fourth team deals future trade arrangements following Israel's withdrawal. The 1994 Paris Protocols for arranging Israeli-Palestinian economic relations under the Oslo Accords, will continue to be the basis for Israeli-Palestinian economic relations.
The fifth team deals with the transfer of Israelis' assets in the settlements to the Palestinian Authority. Although the cabinet decided to demolish the houses, there is an initiative for Palestinians to buy businesses from settlers as going concerns, mediated by international organizations.
Published by Globes [online], Israel business news - www.globes.co.il - on April 26, 2005