The Economic Dimensions of a Two-State Agreement Between Israel and Palestine Vol. I

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In November 2007, the Aix Group published the outcomes of its third stage of research entitled "Economic Dimensions of a Two State Agreement between Israel and Palestine". Building on its experience and findings, the Group identified four
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  The Aix Group was formed in 2002 under the auspices of the Université Paul Cézanne-Aix-Marseille III in France, and in coordination with the Peres Center for Peace in Israel and DATA Center for Studies and Research in Palestine. In 2005 the Aix Group, headed by its five Steering Committee members, began its third stage of research after identifying the following four issues of major economic importance with respect to final status negotiations: (1) Economic cooperation in Jerusalem under different scenarios; (2) The economic aspects of resolving the question of the Palestinian refugees; (3) Cooperation on infrastructure issues; and (4) "Fast Track" issues (examination of topics of contemporary importance) including Palestinian labor in Israel, transitional trade arrangements and the development of the Jordan Valley. The Aix Group held dozens of meetings, three conferences, and ongoing consultations which included the participation of Israeli, Palestinian and international experts, academics, members of economic organizations, and officials from international institutions. The Aix Group is publishing its extensive analysis with the hope of providing key decision-makers within the region and internationally with a solid basis from which to make future decisions regarding final status issues. The chapters presented in this book take into account Palestinian, Israeli, and international perspectives, ensuring that the research and analysis are as impartial as possible. Secrétariat of the Aix Group Centre d’Economie Régionale, de l’Emploi et des Firmes Internationales (CEREFI) Université Paul Cézanne - Aix-Marseille III, FranceTel. : + 33 4 42 21 60 11 Fax: + 33 4 42 23 08 94E-mail: aix-group.cerefi@univ-cezanne.frCoordination and Administration of the Aix Group - IsraelThe Peres Center for Peace, 2 Hashalom Road, Tel Aviv 67892, IsraelTel: + 972 3 56 80 680 Fax: + 972 3 56 10 680E-mail: r.levkovich@peres-center.org Coordination and Administration of the Aix Group - Palestine DATA, Manger Street, Bethlehem, Palestine Tel: +970 2 27 43 343 Fax: +970 2 27 43 369E-mail: databethlehem@data-ps.org inside Fast TrackJerusalemRefugeesCooperation in Infrastructure Economic Dimensions of a Two-State Agreement Between Israel and  Palestine November 2007 > Palestinian-Israeli Trade Relations > Palestinian Labor > The Jordan Valley The Aix Group's previous publications include the "Economic Road Map" (2004), as well as “Israel and Palestine: Between Disengagement and the Economic Road Map” (2005). www.aixgroup.org A i  x  G r  o u p: E  c  on omi   c D i  m e n s i   on s  of   a T  w o- S  t   a  t   e A  gr  e  e m e n t  B  e  t  w e  e n I   s r  a e l    a n d  P  al   e  s  t  i  n e  Editors: Arie Arnon Saeb Bamya 1035227896599 ISBN 978-965-91035-2-2  Economic Dimensions of a Two-State Agreement BetweenIsrael and Palestine  Aix Group Arie Arnon and Saeb Bamya (Eds.) November 2007  3   Foreword  The Aix Group The Aix Group is a unique working group that researches, produces and disseminates position papers which seek to identify economic scenarios and suggest economic recommendations in order to promote win-win outcomes for Palestinians and Israelis. The group includes Palestinian, Israeli and international economists, academics, experts, and policy-makers, as well as officials who are participating as observers. Formed five years ago under the auspices of the Université Paul Cézanne-  Aix- Marseille III in France, and in coordination with the Peres Center for Peace in Israel and DATA Center for Studies and Research in Palestine, the  Aix Group has been chaired by Prof. Gilbert Benhayoun from Université Paul Cézanne. The Group is headed on the Israeli side by Prof. Arie Arnon of Ben-Gurion University of the Negev, and on the Palestinian side by Mr. Saeb Bamya, an economic adviser to the Palestinian Federation of Industries, and former Deputy Minister of National Economy. First Stage of Research: The Economic Road Map (2004) In the belief that a sound economic context is essential to building sustainable peace between Palestinians and Israelis, the Aix Group published its first  joint Palestinian-Israeli-International position paper in January 2004, entitled the “Economic Road Map”. The joint research paper examines optional models for long-term Palestinian-Israeli economic relations, and is written with Stage III (permanent status arrangements) of the Quartet’s political Road Map in mind. The research assesses future policy options in the trade, labor, fiscal, monetary and investment policy areas.  4 Economic Dimensions - Israel and Palestine Second Stage of Research: Israel and Palestine: Between Disengagement and the Economic Road Map (2005) In May 2005, the Aix Group published its second joint position paper, entitled, “Israel and Palestine: Between Disengagement and the Economic Road Map”. In this research paper, the Aix Group analyzes the risks and benefits of the unilateral Disengagement Plan from Gaza and the northern West Bank implemented by Israel in summer 2005. The potential outcomes resulting from the disengagement are examined, as is the potential effect of the disengagement on the revival of the Palestinian economy.  Additionally, there is an assessment of the conditions that must exist in order to link the Disengagement Plan with the optimal solution for long term economic relations between the two countries, as presented in the “Economic Road Map”.  Third Stage of Research: Economic Dimensions of a Two State  Agreement between Israel and Palestine (2006-2007) In November 2005, the Aix Group began its third stage of research. Building on its experience and findings, the Group identified the four issues of major economic importance that are included in this book: (1) Economic cooperation in Jerusalem under different scenarios; (2) The economic aspects of resolving the question of the Palestinian refugees; (3) Cooperation in infrastructure issues; and (4) “Fast Track” issues (examination of topics of contemporary importance) including Palestinian labor in Israel, transitional trade arrangements and the development of the Jordan Valley. The findings of the Aix Group’s research emphasizes the importance of considering economic issues in this conflict and in its solution, and further serves to provide key decision-makers within the region and internationally  with a solid basis from which to make decisions regarding final status issues. Importantly, the information presented in this book takes into account Palestinian, Israeli, and international perspectives, ensuring that the research and analysis is as impartial as possible. For more information on the Aix Group and to download previous publications, please visit the Aix Group’s website:  www.aixgroup.org .
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