The future economic viability of the Palestinian economy depends on the creation of a
trade logistics system which permits the safe, reliable and competitively-priced movement of
people and cargo. This system is described at length in the Word Bank’s December 2004 report
to the AHLC, “Stagnation or Revival? Israeli Disengagement and Palestinian Economic
Prospects”1 (“the December report”), the conclusions of which were broadly endorsed by the
international community, the PA and GOI in Oslo in December. The creation of a functional
trade logistics system for the West Bank and Gaza will require addressing four inter-related
movement domains:

- Movement across the Gaza/West Bank-Israel borders, either to Israel or through
Israel to third countries via Israeli sea and air ports.
- Internal movement within Gaza and the West Bank.
- Movement between Gaza and the West Bank.
- Direct access to third countries, via land borders (to Egypt and Jordan), by sea and
by air.

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