Israel and the Palestinian Authority signed an agreement on economic cooperation in Jerusalem Wednesday in the presence of US ambassador Martin Indyk, a spokesman for Israeli Finance Minister Avraham Shohat said.
Under the agreement, signed by Shohat and one of the top Palestinian peace negotiators, Saeb Erekat, the two sides will act closely together to combat car theft.
The Palestinian Authority undertakes to arrest car thieves and break up about 20 operations selling stolen spare parts, operating illegally in the Palestinian-run territories.
The second point of the agreement stipulates that the Palestinian Authority will settle the numerous debts incurred by Palestinians at various Israeli institutions, in particular hospitals.
Thirdly, it greatly expands the list of items which the Palestinians are allowed to import from Egypt and Jordan without restriction.
Finally, Israel undertakes to pay duty to the Palestinian Authority for articles manufactured and purchased in the autonomous Palestinian territories in order to encourage trade in both directions.
"This agreement has many practical implications, and many others will follow," Shohat told journalists -- OCCUPIED JERUSALEM (AFP)
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