The deal will help improve the Palestinian tax system and will also help in the efforts by both Israel and the Palestinian Authority to reduce illegal trade and tax evasion. It has been well-received by Israel and the international community.

George Deek, advisor to Israel’s embassy in Oslo said, Friday, “The agreement also emphasises the parties' opportunities for collaboration.”

Israeli Finance Minister Yuval Steinetz also declared, “This is an important step in strengthening economic ties between Israel and the Palestinian Authority. I am pleased that our consultations have been completed successfully.”

Calling the agreement “an important follow-up of recommendations from the donor meeting in Brussels in March” AHLC (Ad Hoc Liaison Committe) head, Norwegian Foreign Minister Jonas Gahr Støre, stressed its economic importance.

“It’s now essential that both parties work towards implementing the agreement,” he said in a press statement, adding that the move was an important step towards achieving a sustainable Palestinian economy.

According to Mr Deek, “Israel shares Foreign Minister Støre’s desire to see an end to the conflict, and hopes that the agreement will lead to the resumption of direct negotiations between Israel and the Palestinian Authority. Negotiations are the only viable way to reach agreement on any unresolved issues.”

The agreement will come into force on 1st January 2013, and will be monitored by a team of representatives from both parties.

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