PRIME MINISTER'S ADVISOR STRESSES IMPORTANCE OF

C O N F I D E N T I A L JERUSALEM 002272

SIPDIS

NEA FOR IPA AND SEMEP; STATE PASS USTR FOR FRANCESKI; NSC
FOR KUMAR

E.O. 12958: DECL: 12/15/2019
TAGS: PREL ECON ETRD KWBG IS
SUBJECT: PRIME MINISTER'S ADVISOR STRESSES IMPORTANCE OF
WCO TO PALESTINIAN STATEBUILDING EFFORTS

Classified By: CG Daniel Rubinstein, Reasons 1.4 (b) and (d)


1. (C) Summary: Hatem Yousef, former Palestinian Authority
(PA) Director General of Customs and VAT and newly-appointed
advisor on customs to Prime Minister Fayyad, stressed the
importance of World Customs Organization (WCO) observership
to Fayyad's institution-building efforts. He urged USG
support for PA observer status at the June 2010 WCO Council
Session, claiming that other countries, including Israel, had
already indicated their support. He emphasized that WCO
membership is part of Fayyad's two-year statebuilding plan
and would support institutional reform efforts. End Summary.

The WCO as a Tool for Institution Building
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2. (C) Hatem Yousef, Prime Minister Fayyad's newly-appointed
advisor on Customs, told EconOff on December 14 that the PA's
decision to seek observer status at the WCO is not a
"political" move. Rather, it would permit the PA to
participate in discussions and exchange information on
anti-money laundering, anti-smuggling, and capacity-building,
he said. He pointed out that membership in the WCO was
included in Fayyad's two-year plan to statehood. Yousef
added that WCO observership was not reserved for states --
universities, private companies, and Hong Kong/Macau all had
obtained observership. Unlike the WTO, WCO observership did
not mandate accession within a certain time period, he said.


3. (C) Yousef said he expected the WCO commissioner to bring
up observership for the Palestinian Territories at the June
2010 Council Session, and urged USG support for the PA's
candidacy. He claimed that Israeli DG of Customs Doron
Arbely had already expressed his support for the PA's bid for
observer status. EconOff stressed the importance of
consultation and coordination with the United States and
Israel before the June 2010 meeting. EconChief delivered the
same message to a senior advisor to Minister of National
Economy Hasan Abu-Libdeh on December 10.

Agreement on Prevention of Double Taxation
--------------


4. (C) Yousef said that the PA was also interested in
pursuing an agreement with the United States to prevent
double taxation, as a means of encouraging U.S. companies to
invest in the Palestinian Territories. He said that since
the United States already had signed such a treaty with
Israel, it could be extended to include the Palestinian
Territories, much as the U.S.-Israel FTA was extended to
cover the West Bank and Gaza. Yousef said that he was
prepared to send a formal letter expressing the PA's
interest, if that would help set the process in motion.

RUBINSTEIN