In 1991, Ghousha was elected a member of the PLO's Executive Committee, where he represented the party. The PPSF broke apart when talks between Israel and Palestinians began in Madrid in 1991, with Ghawshah heading the more moderate faction and returning to the favor of Arafat. Ghawshah's PPSF accepted the Oslo Agreement and he served as Minister of Labor in the resulting Palestinian National Authority (PNA) from 1994, but resigned in 1998 in protest of "corruption and the lack of a joint Palestinian strategy." He published his resignation in a letter, complaining of irregularities in the PNA's system of governance, and of apparent examples of corruption He continued to serve as Minister without Portfolio, but from 1999 had no ministerial post. He was present at the Camp David negotiations of 2000 as an adviser to Arafat, and briefly returned as Minister for Jerusalem, formally known as the Orient House Director, in the PNA between late October 2002 and April 2003.