Gaza-Jericho Agreement

The executing agreement of Oslo I, signed in May 1994 by Palestine Liberation Organization (PLO) Chairman Yasser Arafat and Israeli Prime Minister Yitzhak Rabin and also called the Cairo Agreement. As part of the implementation of the 1993 Oslo Accords between the PLO and Israel, the Israeli military withdrew from Gaza and Jericho, while PLO Chairman Yasser Arafat and other officials returned from exile in Tunisia and formed the Palestinian Authority (PA). The Paris Protocol was part of the Cairo Agreement, establishing the basis for economic relations between the PA and Israel. The protocol remains in force today and essentially subordinates the Palestinian economy to Israel’s, preventing Palestinians from collecting VAT and import taxes or creating their own currency. The Gaza-Jericho Agreement was superseded in September 1995 by the Oslo II Agreement.