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Palestinian Authority - Trade and Diplomatic Relations with the EU

Individual State Level

France

Between all the EU members, France has the strongest political relationship with the PA. The relationship between the two started to strengthen in the early 1970s after France started to distance itself from Israel . French relations with the PA moved up a gear after the Oslo I peace agreement with Israel . Since then Paris has been one of the main champions of the Palestinian cause in the EU. Numerous French politicians have since called for the removal of all Israeli settlements from the West Bank and Gaza in order to create the possibility for the creation of a viable Palestinian state. France has also strongly condemned Israeli military action in Palestinian areas and continued expansion of settlements. President Arafat's choice of Paris for medical treatment is a testament of the trust held by the PA in the French government. Since his election President Abbas has received Paris 's backing for the implementation of the Sharm Al Sheikh peace agreement. Relations between France and PA are expected to remain strong due to France 's close relations with the Arab world, presence of a large local muslim population supplemented by Paris 's efforts to counter America 's political influence in the Middle East . It is expected that the PA will ensure the continuing strength of its relations with Paris as means of improving its economic and political position in the EU.

Entity Level

The EU has been providing financial backing to the Palestinian cause since 1971, when the first contribution was made to the regular budget of the United Nations Relief and Works Agency for Palestine Refugees in the Near East . In 1980 the EU put forward the Venice Declaration, which expressed support for Palestinian self-determination. Funding then commenced for a variety of NGO projects , in sectors such as health, agriculture, and education. Financial assistance provided by the EU continued after the establishment of the PA in 1993. These have taken shape through establishment and hosting of a number of Donor conferences as well as financial assistance packages. Other financial assistance provided by the EU to the PA include :

•  The EU committed €250 million in grants for the period 1994-1998, in addition to long term loans from the European Investment Bank. By 1998, the Community had far exceeded this initial pledge with commitments of more than €400 million in grants.

•  At the 1998 Washington ministerial donor conference to support Middle East Peace and Development, the EU pledged a further €400 million for the period 1999 to 2003. Largely because of the current emergency needs, this amount has been exceeded.

•  From 1994 to the end of 2002, the European Union had committed approx. €1 billion in grants and loans, and a further €500 million in contributions to UNRWA. On top of that, bilateral EU Member State assistance is estimated to amount to €2.5 billion over the same period.

Furthermore since 1995 the PA has been a signatory of the Barcelona Declaration and thus a full member of the Euro Mediterranean Partnership. As a result of its membership the PA   benefits also from the programme's main financial instrument, MEDA . The MEDA programme offers technical and financial support measures to accompany the reform of economic and social structures, necessary for the implementation of the Interim Association Agreement on Trade and Cooperation between the EC and the PA.

Political Relations

The EU has provided backing to the Palestinian cause since the 1960s. The EU provided its backing of the 1993 Oslo I and 1996 Oslo II agreements and has been one of the main backers of the 2003 Road Map agreement between Israel and the PA. Other political assistance includes dispatch of numerous EU foreign ministers and envoys to Israel as means of exerting pressure on the Israeli government to meet EU and PA security demands regarding lifting of closures. The EU has backed the PA's demands for the removal of all Israeli settlements outside the Green line. PA's demands for the establishment of a Palestinian state in territories captured by Israel after 1967 with Jerusalem as its capital have received the backing of the EU on numerous occasions. Furthermore the PA has asked for a larger involvement of the EU in the peace negotiations with Israel , as means of countering America 's support for Israel.

By: Meir Javedanfar- www.meepas.com

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