Israel and Palestinian Authority reach agreement to end trade dispute

(Patria) – Israel and the Palestinian Authority have reached an agreement to end a five-month trade dispute, official sources reported.

The dispute began in September when the Palestinian side announced a boycott of Israeli veal, opening another dimension of the long and complex conflict between the two sides.

In response to the boycott, Israeli Defense Minister Naftali Bennett announced in January that the import of agricultural products from Palestinian territories would be completely halted, which in turn led the Palestinian side to do the same regarding Israeli agricultural products.

Reuters writes that Palestinians from the West Bank export about two-thirds of their agricultural products to Israel.

The Israeli Ministry of Agriculture claims that the veal boycott has harmed about 400 Israeli breeders, and the material damage since October alone amounts to about 70 million dollars.

The peak of the dispute was the Israeli ban on Palestinian exports through Jordan, which has been in effect since February 8, which likely prompted the parties to decide to resolve the dispute.

A statement from the Israeli Ministry of Defense states that "the boycott of veal has been lifted and trade with the Palestinian Authority will resume".

Trade relations between the two sides have generally been strong and functional since the interim peace agreement in the 1990s, despite numerous political crises and exchanges of fire after the collapse of the ceasefire in 2014.

Reuters writes that relations have been further strained since the announcement of Trump's Middle East peace plan, which the Palestinians rejected because they believe it favors Israel.