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Coverage · Levant

Key event

The Palestinian Authority is created, with the Paris Protocol's clearance-revenue system

29 Apr – 4 May 1994 Essential

What happened

The Gaza–Jericho Agreement, signed in Cairo on 4 May 1994, establishes the Palestinian Authority. It incorporates the Protocol on Economic Relations signed in Paris on 29 April, under which Israel collects customs and VAT on goods bound for the Palestinian territories and transfers the proceeds — "clearance revenue" — to the PA, less fees and deductions.

The Paris Protocol is the root of the PA's present fiscal dependence: clearance revenue has historically been the largest part of its income, so Israeli withholding and deductions translate directly into PA salary cuts. Israel's suspension of transfers in 2025 and the June 2026 deduction law operate on this 1994 mechanism.

Confidence: High

When29 Apr – 4 May 1994
KindPolitical · Economic
ArenaWest Bank & Jerusalem
Confidence: High Sources: Treaty and agreement texts — Israel, Palestine, Lebanon and neighbours↗ · World Bank — West Bank and Gaza and Lebanon economic monitoring and damage assessments↗ · Established historical record Methodology Corrections

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Connected records

2 records that this event names, or that name it — every one an explicit reference in a published record, nothing inferred from subject matter.

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Actor records this event names.

Where this fits

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