For the trade statistics of the Palestinian EFTA Authority, see the EFTA trade statistics tool In order to continue to contribute to economic integration among Arab countries by liberalizing trade in goods and services, Arab countries are currently engaged in negotiations on the liberalization of services and investment. This free trade area is only the first step towards a customs union by 2015 on the path to a common market by 2020. The agreement was signed in 1997, entered into force in 1998 with the goal of achieving zero tariffs on 31.12.2007, and then amended to be 31.12.2004. Note that Palestine is considered a less developed country and began implementing tariff reductions of 16% from 2005 and 20% in 2011. The free trade agreement applies to all agricultural and animal products in Chapters 1 to 24, whether raw or processed. During the liberalisation process, Member States were able to exclude certain agricultural products from tariff reductions, depending on the production season, and were also able to plan, in accordance with the agreement, products for immediate liberalisation during the implementation process. One of the objectives of the agreement (Article 1) is to promote the harmonious development of economic relations between the parties through the extension of reciprocal trade. On 1 July 1999, virtually all tariffs on trade in industrial products were abolished. The agreement contains provisions relating to the elimination of tariffs and other trade barriers, as well as other trade-related disciplines, such as competition rules, intellectual property protection, public procurement, state monopolies, state aid, payments and transfers. The agreement provides for the establishment of a joint committee to monitor the agreement. It should be noted that this agreement is in line with Article XXIV of the General Agreement on Tariffs and Trade (GATT 1994) and the decision on more favourable differentiation and treatment, reciprocity and wider participation of developing countries (1979). Russia and Palestine mutually expand the status of the most favoured nation in terms of trade. Imports and exports between the two parties are exempt from tariffs for the following products: the agreement applies to trade in all fish and other seafood (Article 2 and Appendix II).
EFTA states grant duty-free access to imports of all fish products after the agreement comes into force. The Palestinian Authority sets a duty-free import quota for certain fishing products originating in EFTA states, which is increased during a transitional period until it is abolished with tariffs on these products on 1 January 2004. However, Palestine has signed separate bilateral agreements with EFTA countries on processed agricultural products, as the four EFTA countries do not pursue the same agricultural policy. These agreements are seen as an integral part of the instruments needed to create a free trade area. Within the GAFTA, Palestine is considered the least developed country and began implementing tariff reductions of 16% from 2005 and 20% last year. Recently, Palestinian Customs began to reimburse the value of customs duties paid by Palestinian importers for duty-free goods under this agreement, as a obligation for Palestine to join the Arab Free Trade Area. As a result, Palestinian traders enjoy duty-free access to all products from all GAFTA Arab countries.