Permanent status negotiations began on 5 May 1996. The DOP provides that Israel will retain responsibility during the transitional period for external security and for internal security and public order of settlements and Israelis.
Permanent status is to be determined through direct negotiations within five years.
The Persian Gulf crisis and its aftershocks also dealt blows to Gaza since August 1990. Worker remittances from the Gulf states have dropped, unemployment has increased, and exports have fallen. The withdrawal of Israel from the Gaza Strip in May 1994 has brought a new set of adjustment problems. The stringent border restrictions have held back economic growth in 1995 and 1996.