Proposal for a Council Decision on the position to be adopted by the European Community within the Joint Committee established by the Interim Association Agreement on trade and cooperation with regard to the adoption of a Recommendation on the implementation of the EU-Palestinian Authority Action Plan
Date: 2004-12-09
Institutions: European Commission
Subjects: EU relations, Palestine, action programme, aid policy, common foreign and security policy, cooperation policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.12.2004 
COM(2004) 789 final 

Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the European Community  
within the Joint Committee established by the Interim Association Agreement on trade 
and cooperation with regard to the adoption of a Recommendation on the 
implementation of the EU-Palestinian Authority Action Plan 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

The  2002  Copenhagen  European  Council,  closing  accession  negotiations  with  ten  applicant 
States,  recognised  that  enlargement  presented  an  important  opportunity  to  take  forward 
relations  with  neighbouring  countries  based  on  shared  values,  and  stated  that  the  Union 
remained  determined  to  avoid  new  dividing  lines  in  Europe  and  to  promote  stability  and 
prosperity within and beyond the new borders of the Union. 

The  Commission  Communication  “Wider  Europe  -  Neighbourhood:  A  New  Framework  for 
Relations  with  our  Eastern  and  Southern  Neighbours”  of  March  20031  proposed  the 
establishment of Action Plans with partner countries. On 16 June 2003, the Council welcomed 
this Communication and invited the Commission, with the contribution, where appropriate, of 
the High Representative, to present proposals for Action Plans for all countries concerned as 
appropriate, commencing with Ukraine, Moldova, and Southern Mediterranean partners with 
Association Agreements. 

On  14  June  2004,  the  Council  welcomed  the  Commission  Communication  “European 
Neighbourhood  Policy  –  Strategy  Paper”2.  The  Council  also  welcomed  the  Commission 
proposal  to  pursue  the  European  Neighbourhood  Policy  (ENP)  through  Action  Plans  to  be 
agreed  jointly  with  the  neighbouring  countries  concerned  and  invited  the  Commission  to 
propose such Action Plans. Action Plans should have a minimum duration of three years and 
be subject to renewal by mutual consent. They should be based on common principles but be 
differentiated,  as  appropriate,  taking  into  account  the  specificities  of  each  neighbour,  its 
national  reform  processes  and  its  relations  with  the  EU.  Action  Plans  should  be 
comprehensive  but  at  the  same  time  identify  clearly  a  limited  number  of  key  priorities  and 
offer  real  incentives  for  reform.  Action  Plans  should  also  contribute,  where  possible,  to 
regional cooperation. The Council also defined how to advance and monitor implementation 
of action plans.  

The  Commission,  in  close  cooperation  with  the  Presidency  and  the  High  Representative  on 
issues  related  to  political  cooperation  and  the  CFSP,  has  held  exploratory  talks  with  the 
Palestinian  Authority  which  have  resulted  in  agreement  on  a  draft  Action  Plan.  It  covers  a 
timeframe  of  three  to  five  years.  Its  implementation  will  help  fulfil  the  provisions  in  the 
Interim Association Agreement and will contribute to an increasingly close relationship with 
the  Palestinian  Authority,  involving  a  significant  degree  of  economic  integration  and  a 
deepening  of  political  co-operation.  Implementation  of  the  Action  Plan  will  significantly 
advance  the  approximation  of  the  Palestinian  Authority  legislation,  norms  and  standards  to 
those of the European Union. 

In accordance with the Council Conclusions of 14 June 2004, stipulating that the Action Plans 
will be approved by the Council and subsequently endorsed by the respective Association or 
Co-operation Councils, the Commission attaches the text of a proposal for a Council Decision 
on  the  position  to  be  taken  by  the  Community  within  the  EU-Palestinian  Authority  Joint 
Committee  with  regard  to  the  adoption  of  a  Recommendation  on  the  implementation  of  the 
Action Plan in annex.  

1 
2 

COM(2003)104 
COM(2004)373 

2 

 
 
  
 
                                                 
The Commission therefore requests the Council to adopt the attached proposal for a Council 
Decision. 

3 

 
 
  
 
Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the European Community  
within the Joint Committee established by the Interim Association Agreement on trade 
and cooperation with regard to the adoption of a Recommendation on the 
implementation of the EU-Palestinian Authority Action Plan 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to Article 3 (2), of Council Decision 97/430/EC of 2 June 1997 concerning the 
conclusion of the Euro-Mediterranean Interim Association Agreement; 

Having regard to the Treaty on European Union, in particular Article 15 thereof; 

Having regard to the proposal from the Commission3; 

Whereas: 

(1) 

(2) 

The  Interim  Association  Agreement  on  trade  and  cooperation  was  signed  on  24 
February 1997 and entered into force on 1 July 1997. 

The Parties intend to agree on an EU- Palestinian Authority Action Plan, which will 
support  the  implementation  of  the  Interim  Association  Agreement  through  the 
elaboration and agreement of concrete steps towards attainment of its objectives. 

HAS DECIDED AS FOLLOWS: 

Sole Article 

The  position  to  be  adopted  by  the  European  Community  within  the  Joint  Committee 
established by the Interim Association Agreement on trade and cooperation with regard to the 
implementation  of  the  EU-Palestinian  Authority  Action  Plan  shall  be  based  on  the  draft 
Recommendation of the Joint Committee annexed to this Decision.  

Done at Brussels,  

3 

OJ C , , p. 

For the Council 
The President 

4 

 
 
  
 
 
 
 
 
                                                 
ANNEX  

draft 

RECOMMENDATION 

on the implementation of the EU-Palestinian Authority Action Plan  

The EU/ Palestinian Authority Joint Committee, 

Having  regard  to  the  Interim  Association  Agreement  on  trade  and  cooperation  and  in 
particular Article 63, paragraph 2 thereof,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

Article  63  paragraph  2  of  the  Interim  Association  Agreement  gives  the  Joint 
Committee  the  power  to  make  appropriate  recommendations,  for  the  purposes  of 
attaining the objectives of the Agreement.  

In terms of Article 70 of the Interim Association Agreement, the Parties shall take any 
general  or  specific  measures  required  to fulfil  their  obligations  under  the  Agreement 
and shall see to it that the objectives set out in the Agreement are attained. 

 The Parties to the Interim Association Agreement have agreed on the text of the EU- 
Palestinian Authority Action Plan. 

The  EU-Palestinian  Authority  Action  Plan  will  support  the  implementation  of  the 
Interim  Association  Agreement  through  the  elaboration  and  agreement  between  the 
Parties  of  concrete  steps  which  will  provide  practical  guidance  for  such 
implementation. 

HAS ADOPTED THE FOLLOWING RECOMMENDATION: 

Sole Article 

The Joint Committee recommends that the Parties implement the EU-Palestinian Authority 
Action Plan in annex, insofar as such implementation is directed towards attainment of the 
objectives of the Interim Association Agreement.  

Done at [...] 

For the Joint Committee 

The President 

5 

 
 
  
 
 
ANNEX 

EU/ PALESTINIAN AUTHORITY ACTION PLAN 

1. Introduction  

The enlargement of the European Union on 1 May 2004 has brought a historical shift for the 
Union in political, geographic and economic terms. The EU and the Palestinian Authority, as 
close  neighbours,  will  reinforce  their  political  and  economic  interdependence.  Enlargement 
offers  the  opportunity  for  the  EU  and  the  Palestinian  Authority  to  create  the  conditions  for 
developing  an  increasingly  close  relationship  in  preparation  for  a  future  Palestinian  State, 
going  beyond  co-operation,  to  involve  a  significant  measure  of  economic  integration  and 
deepening of political cooperation.  

The European Neighbourhood Policy of the European Union sets ambitious objectives based 
on commitments to shared values and effective implementation of political, economic, social 
and institutional reforms.  

Achieving Palestinian statehood requires full implementation of the Quartet Roadmap and an 
end to violence in order to reach a fair and lasting peace in the Middle East, on the basis of the 
relevant  UN  Security  Council  Resolutions,  and  allowing  for  the  establishment  of  an 
independent,  viable,  sovereign and contiguous Palestinian state,  living  side by side with the 
state of Israel in peace and security. 

The  Palestinian  Authority  welcomes  the  EU  initiative  to  enter  into  intensified  political, 
security, economic and cultural relations, and shared responsibility in conflict prevention and 
conflict resolution. The European Union and the Palestinian Authority are determined to make 
use  of  this  occasion  to  enhance  their  relations  and  to  promote  stability,  security  and  well-
being, and to support the Palestinians in their efforts to build their own future. The approach 
is founded on partnership, joint ownership and differentiation. 

Palestinian participation in the European Neighbourhood Policy takes place in the context of 
the  overall  political  situation  in  the  region  which  affects  the  scope  of  actions  that  can  be 
feasibly  undertaken.  There  are  a  number  of  constraints  and  limitations  resulting  from  the 
ongoing  Israeli-Palestinian  conflict  and  the  continuing  occupation,  including  settlement 
activity, restrictions to movement as a result of the closure policy and the separation barrier. 
The limitations on the Palestinian Authority pending the creation of a Palestinian state must 
also  be  taken  into  account.  Joint  action  will  be  required  both  to  bring  about  the 
implementation of the Roadmap and to continue the preparations for statehood.  

The level of ambition of the EU-PA relationship will depend on the degree of commitment to 
common  values  as  well  as  the  capacity  to  implement  jointly  agreed  priorities.  The  pace  of 
progress of the relationship will acknowledge fully the efforts and concrete achievements in 
meeting those commitments. 

The  European  Neighbourhood  Policy  is  part  of  the  European  Union’s  response  to  the 
Palestinian  Authority’s  political  and  economic  reform  agenda.  This  Reform  has  been 
developed  to  consolidate  democracy,  accountability,  transparency  and  justice  in  the  West 
Bank and Gaza. 

This Action Plan is a first step in this process. It covers a timeframe of three to five years. Its 
implementation  will  help  fulfil  the  provisions  in  the  Interim  Agreement  (IA)  and  will 

6 

 
 
  
 
 
encourage  and  support  the  Palestinian  Authority’s  national  reform  objectives  and  further 
integration into European economic and social structures. Implementation of the Action Plan 
will significantly advance the approximation of Palestinian legislation, norms and standards to 
those  of  the  European  Union.  It  will  also  build  solid  foundations  for  further  economic 
integration based on the adoption and implementation of economic and trade-related rules and 
regulations  with  the  potential  to  enhance  trade,  investment  and  growth.  It  will  furthermore 
help  to  devise  and  implement  policies  and  measures  to  promote  economic  growth 
employment and social cohesion, to reduce poverty and to protect the environment, thereby 
contributing to the long-term objective of sustainable development. The Palestinian Authority 
and the EU will cooperate closely in implementing this Action Plan.  

New Partnership Perspectives 

The European Neighbourhood Policy opens new partnership perspectives:  

•  The  perspective  of  moving  beyond  cooperation  to  a  significant  degree  of  integration, 
including  through  a  stake  in  the  EU’s  Internal  Market,  and  the  possibility  for  the 
Palestinian  Authority  to  participate  progressively  in  key  aspects  of  EU  policies  and 
programmes. 

•  An upgrade in the scope and intensity of political cooperation; 

•  The  opportunity  for  convergence  of  economic  legislation,  the  opening  of  economies  to 
each other, and the continued reduction of trade barriers which will stimulate investment 
and growth; 

•  More targeted financial support: EU financial assistance for the Palestinian Authority will 
be  better  targeted  to  support  the  actions  identified  in  the  present  document.  The 
Commission  is  furthermore  proposing  a  new  European  Neighbourhood  and  Partnership 
Instrument  (ENPI),  for  this  purpose,  also  covering  the  very  important  aspect  of 
transnational cooperation. There may also be infrastructure investment support through the 
European Investment Bank;  

•  Possibilities  of  gradual  opening  of  or  reinforced  participation  in  relevant  Community 
programmes,  promoting,  inter  alia,  cultural,  educational,  environmental,  technical  and 
scientific links; 

•  Support including technical assistance and twinning to meet EU norms and standards, and 
targeted  advice  and  support  for  legislative  approximation  through  a  mechanism  such  as 
Technical Assistance Information Exchange (TAIEX);  

•  Deepening trade and economic relations, extending them progressively to cover agriculture 
and the service sector, and to provide the conditions for increasing investment and exports  

For  the  near  future  the  Interim  Association  Agreement  remains  a  valid  basis  for  EU- 
Palestinian  cooperation  and  will  permit  the  implementation  of  the  priorities  of  the  Action 
Plan.  In  the  light  of  the  fulfilment  of  the  objectives  of  this  Action  Plan  and  of  the  overall 
evolution  of  the  EU-PA  relations,  consideration  will  be  given  to  the  possibility  of  a  new 
contractual  relationship.  The  Commission  has  suggested  that  this  could  take  the  form  of  a 
European Neighbourhood Agreement. Upon the establishment of an independent Palestinian 
State, this would include the features of a full Association Agreement. 

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Priorities for action 

The Action Plan sets out agreed priority objectives to be achieved, which have been jointly 
agreed  by  the  both  the  EU  and  the  PA.  Many  of  these  priorities  are  based  on  the  ongoing 
Palestinian  reform  programme  which  was  launched  in  June  2002.  Given  the  prevailing 
political situation in the West Bank and Gaza Strip, it is not possible to distinguish between 
short  and  medium  term  actions.  In  this  context  the  EU  and  the  Palestinian  Authority  attach 
particular importance to: 

–  Facilitating  efforts  to  resolve  the  Middle  East  conflict,  and  to  alleviate  the  humanitarian 

situation 

–  Enhancing  political  dialogue  and  cooperation,  based  on  shared  values,  including  issues 
such as strengthening the fight against terrorism and incitement to violence, promoting the 
protection  of  human  rights  and  the  rights  of  minorities,  improving  the  dialogue  between 
cultures  and  religions,  co-operating  in  the  fight  against  racism  and  xenophobia,  in 
particular anti-Semitism and Islamophobia.  

–  Progress  on  establishing  a  functioning  judiciary  and  effective  enforcement  of  legislation; 

strengthening the rule of law and respect for human rights 

–  Strengthening institutions and further reinforcing administrative capacity 

–  Organisation of elections in the West Bank and Gaza Strip in accordance with international 

standards 

–  Building on progress made in establishing an accountable system of public finances 

–  Developing trade relations with the Palestinian Authority and progress with economic and 

regulatory reform plans; fully implement the Interim Association Agreement 

–  Enhance  cooperation  on  transport  and  energy  issues  with  the  objective  of  strengthening 

Palestinian participation in Trans Euro-Mediterranean networks 

Progress  in  meeting  these  priorities  will  be  monitored  in  structures  under  the  Interim 
Association  Agreement.  On  this  basis,  the  EU,  together  with  the  Palestinian  Authority,  will 
review the content of the Action Plan and decide on its adaptation and renewal. Within three 
years,  decisions  may  be  taken  on  the  next  step  in  the  development  of  bilateral  relations, 
including the possibility of new contractual links.  

8 

 
 
  
 
2. Actions 

2.1 Political dialogue and reform – building the institutions of an independent, 
democratic and viable Palestinian State  

Development of enhanced political dialogue and cooperation 

(1) 

Strengthen political dialogue and cooperation including on foreign and security policy 
issues 

Regular  EU-PA  political  dialogue  is  provided  for  in  the  context  of  the  Interim  Association 
Agreement  on  Trade  and  Cooperation.  Political  dialogue  and  cooperation  should  be 
strengthened and extended to include the following regional and international issues.  

–  Developments in the  region and  prospects for  cooperation to resolve the  Middle 
East conflict, including intensified efforts to facilitate the peace process and bring 
about  the  implementation  of  the  Quartet  Roadmap  to  a  permanent  two-state 
solution to the Israeli-Palestinian conflict 

–  Measures to facilitate improving the overall humanitarian situation  

–  Ensuring respect for international law, in particular international humanitarian law 

–  Dialogue between cultures and religions 

–  Measures in the fight against racism and xenophobia, including anti-Semitism and 

Islamophobia 

–  Fight against terrorism 

–  Strengthen EU-PA cooperation on the Palestinian reform programme 

(2) 

Intensify  co-operation  in  the  areas  of  combating  terrorism,  non-proliferation  of 
weapons of mass destruction and illegal arms trade 

–  Strengthen  EU-Palestinian  Authority  co-operation  on  the  fight  against  and 
prevention of terrorism, including the prevention of illicit funding and supply of 
arms; 

–  Co-operate  to  reinforce  the  role  of  the  UN  in  the  multilateral  fight  against 
terrorism,  including  through  full  implementation  of  UNSC  Resolutions  1373/01 
and 1267/99, through implementation and enforcement of the UN Convention for 
the Suppression of the Financing of Terrorism; 

–  Ensure respect of human rights in the fight against terrorism. 

–  Co-operation on non-proliferation of weapons of mass destruction, their means of 
delivery and ballistic missiles, including through implementing UNSC resolution 
1540/04,  ensuring  full  compliance  with  and  national  implementation  of  existing 
international  obligations  and  promoting  the  accession  to  and  compliance  with 
other relevant international instruments and export control regimes 

9 

 
 
  
 
–  Further  develop  co-operation  in  the  prevention  of  and  fight  against  the  illicit 

trafficking of WMD-related materials 

–  Co-operation  on  establishing  effective  systems  of  national  export  control, 
controlling  export  and  transit  of  WMD-related  goods,  including  WMD  end-use 
control  on  dual  use  technologies,  and  effective  sanctions  for  breaches  of  export 
controls 

–  Apply  the  risk-based  customs  control  ensuring  safety  and  security  of  goods 
imported, exported or in transit, and explore possible definitions of standards for 
certification  of  operators  (exporters  and  transporters)  intervening  in  commercial 
exchanges 

–  Improve overall co-ordination in the non-proliferation area ,and examine specific 
threats related to WMD which undermine regional security and the scope for co-
operation in addressing them 

–  Promote  the  relevant  provisions  of  the  political  and  security  partnership  of  the 
Barcelona  Declaration  with  the  objective  of  pursuing  a  mutually  and  effectively 
verifiable Middle East zone free of weapons of mass destruction. 

Democracy and rule of law 

(3) 

Establishment of an independent, impartial and fully functioning judiciary in line with 
international standards and strengthen the separation of powers. 

–  Adopt a coherent strategy for judicial reform  

–  Ensure progress on unification of the legal codes of the West Bank and Gaza Strip 

–  Ensure  effective  implementation  of  the  Basic  Law,  in  particular  those  articles 
relating  to  Citizen’s  Rights  and  Civil  Liberties,  and  to  the  respect  of  provisions 
regarding the Military Courts 

–  Progressively improve the courts infrastructure 

–  Ensure full implementation of the “Law on the Judicial Authority”, including the 
complete  and  transparent  division  of  responsibilities  between  the  Supreme 
Judicial  Council  and  the  Ministry  of  Justice  and  strengthen  the  administrative 
capacity 

–  Improve  conditions  for  training  in  relevant  areas  (including  human  rights)  and 

examine possibilities for establishing a Judicial Training Institute 

–  Implement reform of the PA security services 

(4) 

Organisation  of  transparent  general  and  local  elections  according  to  international 
standards 

–  Revise  the  legal  framework  to  ensure  compatibility  with  international  standards 

and best practice 

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–  Update  the  Voter  Register  for  the  West  Bank,  Gaza  Strip  and  East  Jerusalem 

(subject to freedom of movement within the Palestinian Territory).  

–  Start preparations for polling, counting, observation and party registration 

–  Adopt a legal framework for the registration and activities of political parties 

–  Ensure the independence of the elections commissions and a fair and free election 

process covering both general and local elections.  

–  Guarantee  conditions  for  media  coverage  preceding  and  during  the  election 

campaign 

(5) 

Acceleration of constitutional and legislative reform 

–  Finalise work on the drafting of a democratic Constitution and consultation with 

wider public. 

(6) 

Public administration and civil service reform  

–  Continue  implementation  of  the  civil  service  and  public  administration  reform 
programme, in particular making the non-ministerial public institutions operating 
outside the jurisdiction of the Council of Ministries and the Palestinian Legislation 
Council  (PLC)  accountable,  and  continuing  the  restructuring  efforts  in  various 
Ministries,  including  the  development  of  mandate,  mission  statements,  and 
development programmes 

–  Strengthen  the  capacity  of  institutions  responsible  for  implementing  the  reform 

programme 

Human rights and fundamental freedoms 

(7) 

Strengthen legal guarantees for freedom of speech, freedom of  the  press,  freedom  of 
assembly and association in accordance with international standards  

–  Ensure effective freedom of the media, including journalists’ rights and allow for 

unhindered functioning of a pluralistic media system 

–  Review the legal framework in view of providing for full freedom of the press in 
for 

international  best  practices 

(including  possibilities 

accordance  with 
establishing an independent media commission)  

–  Ensure  full  implementation  of  the  2000  NGO  Law  according  to  the  by-laws 

adopted in November 2003 and the Basic Law 

(8) 

Ensure  the  respect  of  human  rights  and  basic  civil  liberties  in  accordance  with  the 
principles  of  international  law,  and  foster  a  culture  of  non-violence,  tolerance  and 
mutual understanding. 

–  Adopt  and  implement  an  Action  Plan  on  fostering  a  culture  of  non-violence, 
tolerance  and  mutual  understanding,  covering,  inter  alia,  public  institutions  the 
education system and the media, including effective measures against incitement. 

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–  Strengthen  possibilities  for  legal  redress  against  violations  of  human  rights  and 

civil liberties and access to information on citizens’ rights 

–  Promote women’s rights and ensure equal treatment and opportunities for women 

–  Strengthen and ensure effective enforcement of legal provisions against torture 

–  Provide training for the relevant Palestinian authorities on human rights issues and 

civil liberties 

Financial Accountability and Sound Management of Public Finances 

(9) 

Continue efforts to establish a modern and well-functioning system of financial control 
in line with international best practices  

–  Strengthen  internal  audit  within  the  Finance  Ministry  and  all  PA  spending 

agencies 

–  Provide  training  in  modern  methods  of  financial  control  (internal  and  external 

audit) 

–  Pursue  adoption  and  implementation  of  the  new  law  on  external  audit  that 
provides  for  a  modern  and  efficient  Supreme  Audit  Institution,  headed  by  an 
independent  Auditor  General,  empowered  to  conduct  audits  on  the  public  sector 
on a regular basis and accountable to the legislature. 

–  Submit  annual  reports  of  the  General  Control  Institute  to  the  Palestinian 

Legislative Council, in accordance with legal requirements 

–  Continue  cooperation  on  exchange  of  information  between  the  Palestinian 
Authority’s law enforcement authorities and other relevant authorities (including 
specialised bodies at European level) 

–  Continue cooperation with relevant EU institutions and bodies in the case of on-
the-spot  checks  and  inspections  related  to  the  management  and  control  of  EU 
funds. 

(10)  Continue  work  to  improve  transparency  of  the  PA  finances  and  to  take  concerted 
action to tackle corruption within public institutions and to fight against fraud. 

–  Complete the implementation of the Palestinian Reform programme on budgetary 

and fiscal transparency  

–  Provide training for public institutions on anti-corruption measures 

–  Develop sufficient administrative capacity to prevent and fight against fraud and 
other  irregularities  affecting  national  and  international  funds,  including  the 
establishment  of  well-functioning  co-operation  structures  involving  all  relevant 
national entities. 

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(11)  Ensure transparency of public procurement operations.  

–  Develop  conditions  for  open,  fair  and  competitive  award  of  public  contracts  in 

accordance with international best practices.  

–  Enforce the General Procurement Law 

(12)  Put in place a modern and financially sustainable pension system. 

–  Adopt an action plan for the reform of the pension system 

–  Establish a legal framework for a new pensions system, including the PA security 
services and restructuring and unifying the existing civil service pension schemes  

2.2 Economic reform and development 

(13) 

Improve the conditions for the establishment and functioning of a market economy  

–  Carry out necessary legislative reform and ensure adoption and implementation of 
a basic regulatory framework (including: Capital Market Authority Law, amended 
Income Tax Law, Companies Law, Competition Law) 

–  Strengthen  the  administrative  capacity  of  the  Palestinian  Authority  and  other 

relevant agencies in the area of economic reform. 

–  Strengthen the capacity of the Land Authority 

2.3 Trade-related issues, market and regulatory reform 

(14)  Develop  trade  relations  between  the  European  Community  and  the  Palestinian 

Authority 

–  Proceed  with  gradual  liberalisation  of  trade  in  agricultural  and  fishery  products 
and develop the necessary tools for trade control and management, including the 
gathering and analysis of data  

–  Implement 

the  Palermo  Action  Plan  approved  at 

the  July  2003  Euro-

Mediterranean Conference of Trade Ministers 

–  Examine priorities for veterinary and phytosanitary standards in order to improve 

access to the EU market 

(15) 

Strengthen regional cooperation with neighbouring countries 

–  Reinforce  co-operation  among  the  EC,  the  Palestinian  Authority  and  Israel  to 
facilitate  implementation  of  trade-related  aspects  of  the  Interim  Association 
Agreement 

–  Develop competencies, required knowledge and skills for trade negotiations 

–  Enable  Palestinian  participation  in  the  Pan-Euro-Mediterranean  cumulation  of 

origin. 

13 

 
 
  
 
(16)  Develop the regulatory framework for a modern taxation system and institutions based 

on international best practices.  

–  Revise  the  Income  tax  law  in  line  with  international  best  practices,  and 

encompassing a single tax code for the West Bank and Gaza Strip.  

–  Continue efforts to unify the taxation administration in the West Bank and Gaza 

Strip, and to improve the overall effectiveness of revenue collection 

–  Improve  coordination  between  the  West  Bank  and  Gaza  treasuries  and  tax 

administrations 

–  Strengthen administrative capacity of the treasuries and tax administrations 

(17)  Revitalise the private sector 

–  Provide support for sustainable private sector development, including institution-

building 

–  Strengthen relations between the Palestinian private sector and its institutions and 

EU counterparts  

–  Strengthen EU-PA cooperation on enterprise policy, including implementation of 

the EuroMed charter for enterprises 

–  Simplify administrative procedures for business  

(18)  Further develop the statistics system based on international best practices  

–  Reinforce the administrative capacity of the statistics bureau and improve overall 

coordination on collection of data. 

–  Ensure  the  appropriate  legal  framework  for  a  modern  statistics  system  based  on 

impartiality, reliability, transparency and confidentiality of data 

2.4 Energy, Environment, Transport and Science and Technology 

(19)  Take  steps  to  promote  good  environmental  governance,  to  aim  for  prevention  of 
deterioration  of  the  environment,  and  to  enhance  co-operation  on  environmental 
issues 

–  Review  the  PA  environment  policy  and  prioritise  activities  included  in  the 

Palestinian Environmental Law 

–  Strengthen  administrative  capacity  and  clarify  responsibilities  between  different 

authorities 

–  Work  towards  improvements  in  the  overall  water  and  sanitation  management 

system 

–  Promote enhanced regional cooperation with neighbouring countries, including on 

the sharing and management of water resources 

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–  Pursue efforts to improve water supply and quality, especially in rural areas, with 

a view to meeting WHO standards 

–  Assess  possibilities  for  participation  in  selected  European  Environment  Agency 

activities 

–  Explore  scope  for  strengthening  capabilities  for  the  safe  disposal  of  hazardous 

waste 

(20)  Enhance cooperation on energy and transport issues 

–  Strengthen institutional capacity in the field of energy 

–  Develop  regional  cooperation  on,  inter  alia,  electricity  and  gas;  energy  and 
renewable energy sources and networks (in particular Euro-Mediterranean, and on 
the basis of relevant agreements, e.g. EC-Israel-Palestinian Authority) 

–  Strengthen  cooperation  on  transport  and  promote  Palestinian  participation  in 

Trans Euro-Mediterranean networks, and on other regional issues 

–  Promote  participation  of  the  PA  in  regional  transport  programmes,  including 

satellite navigation 

(21) 

Science and technology, research and development 

–  Evaluate  the  current  situation  with  regard  to  research  and  development 

(infrastructure, human resources, institutional capacity) 

–  Promote  improved  Palestinian  participation  in  the  EU  Sixth  Framework 
Programme  on  Research  and  Development  (including  the  establishment  of 
national contact points) 

2.5 People-to-people contacts, education, and public health 

Education, training, and youth 

(22)  Develop  a  modern  education  system  based  on  peace,  tolerance  and  mutual 

understanding 

–  Ensure  continued  progress  on  the  new  Palestinian  Authority  School  Curriculum 

for all grades 

–  Upgrade the higher education system 

–  Enhance regional cooperation in the field of education and youth;  

–  Promote  intercultural  dialogue,  and  youth  exchanges  including  cooperation 

through youth and other relevant cultural cooperation programmes  

–  Examine possibilities for developing sporting activities 

–  Reinforce  participation 

in 

the  EC  TEMPUS  programme  and  encourage 

participation in the Erasmus Mundus programme 

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–  Examine ways to implement recommendations on bridging the knowledge gap as 

identified in the UNDP Arab Human Development Reports. 

–  Implement  the  national  strategy  for  technical  and  vocational  education  and 

training through capacity building and human resource development 

Public health 

–  Upgrade  the  Palestinian  Public  health  system,  and  examine  ways  to  improve 

sustainability beyond the conflict 

–  Strengthen the administrative capacity of the Ministry of Health 

–  Strengthen  coordination  with  relevant  international  organisations  and  health 

service providers, including NGOs 

2.6 European Community-Palestinian Authority Cooperation 

(23)  Take  concrete  measures  to  implement  the  Interim  Association  Agreement  on  Trade 
and  Cooperation  between  the  EC  and  the  PLO  (for  the  benefit  of  the  Palestinian 
Authority) 

–  Examine possibilities of greater use of the institutional framework of the Interim 
Association Agreement (e.g. Joint Committee meetings, working groups etc.) 

–  Examine prospects of negotiation of a full Association Agreement 

(24) 

Support the implementation of PA reform programme, focused on the priorities set out 
in the Action Plan. 

–  Participate  in  the  Quartet  Task  Force  on  Palestinian  Reform  and  the  Ad  Hoc 

Liaison Committee on Assistance to Palestinians 

–  Provide targeted financial assistance and institution building support, focused on 
the  priorities  of  the  Action  Plan  and  the  overall  objective  of  building  the 
institutions of a Palestinian state living in peace and security with Israel 

3. Monitoring 

The Action Plans will be submitted for formal adoption to the Joint Committees between the 
EU and the Palestinian Authority. The Action Plans will guide the work between the EU and 
the  Palestinian  Authority.  Should  the  need  arise,  on  the  EU  side,  for  specific  measures 
necessitating  legally  binding  decisions,  the  Commission  will  recommend  to  the  Council  the 
adoption of the necessary negotiating directives.  

The  joint  bodies  established  under  the  Interim  Association  Agreement  will  advance  and 
monitor  the  implementation  of  the  Action  Plan  on  the  basis  of  regular  reports  on  its 
implementation.  

A first review of the implementation of the Action Plan will be taken within two years of its 
adoption. 

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The  Action  Plans  can  be  regularly  amended,  on  a  joint  basis,  and/or  updated  to  reflect 
progress in addressing the priorities. 

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