High-ranking Israeli and Palestinian officials met in Jerusalem today to discuss administrative issues, such as visas to the West Bank, medical treatment for Palestinians, and other export/import issues. The meeting between Palestinian Minister of National Economy Bassem Khoury and Israeli Vice Prime Minister and Minister for Regional Development Silvan Shalom marks the first direct high-level talks since the assumption of the new government lead by Prime Minister Binyamin Netanyahu. Shalom reportedly attempted to push the concept of “economic peace,” an issue on which Netanyahu campaigned and considers a prerequisite to political peace.
In support of the “economic peace” idea, Shalom said:
“Our objective is economic peace… That doesn’t prevent political dialogue, but rather, assists and gives it momentum.”
This meeting represents the Israeli government’s investment in the idea of an “economic peace” with the West Bank. Moreover, Palestinian participation in the summit indicates some agreement by Palestinian officials to negotiate with the Netanyahu government. While this meeting only marks the first step in a long process to reunite the two economies, it remains slightly significant for the resumption of dialogue between the two governments ahead of U.S.-brokered peace talks.
However, Khoury downplayed the meeting, stating:
“The meeting has no political significance and does not express a change in the authority’s stance, by which there will be no negotiations until Israel fulfills its obligations derived from the Road Map, which include a complete halt in all settlement activity, especially in Jerusalem”.
Prior to the outbreak of the intifadas, the Israeli and Palestinians economies were intertwined, with Israeli businesses employing Palestinians and a substantial amount of commerce crossing the border between the nations.
See my previous post on the recent development of the Palestinian economy and the “economic peace” here.
Photo taken from Ha’aretz.