ISTANBUL - Turkey and Palestine signed a free trade agreement on Tuesday.
The agreement was signed by Turkish State Minister Kursad Tuzmen and Palestinian National Economy Minister Maher Al-Masri.
In accordance with the agreement, industrial products will be exempt from customs duties and there will be no double taxation.
Speaking at the signing ceremony, Tuzmen said that he believed both Turkish and Palestinian businessmen would make mutual investments after the agreement which had been prepared with the aim to increase level of prosperity of both countries.
Noting the agreements envisaged cooperation in several sectors from agriculture to industry and from enhancement of infrastructure of quality to tourism, Tuzmen said the agreement also envisaged extension of technical assistance to Palestine if it was seen necessary.
Stressing that they wanted to strengthen both Turkey's and Palestine's ties with other countries, Tuzmen said that they wanted to open the Turkish market which had a 140 billion U.S. dollars of trade volume to Palestine and supply goods which Turkey needed from Palestine and send goods and services which were needed in Palestine.
Tuzmen said, ''under the arrangements between Palestine and Israel, there is the principle of free movement of goods between these two countries while considerable amount of Turkish products are sold to Palestinians through Israeli mediators. Our Palestinian friends told us that the amount is at least 120 million U.S. dollars. They say it would increase in 2004.''
Stressing that the agreement would consolidate friendship and cooperation between Turkey and Palestine, Tuzmen said that signing of the agreement which was an important part of the Barcelona process that aimed to formation of a free trade zone among the European and Mediterranean countries ahead of the Fourth Europe-Mediterranean (EUROMED) Trade Ministers Conference that would start on Wednesday was actually a message to the countries in the region.
Meanwhile, Palestinian National Economy Minister al-Masri said that the agreement would reinforce friendship between Turkey and Palestine and strengthen the bilateral economic relations.
Noting that also agreements with the Arab countries would contribute to economic development in the Middle East, Masri said they aimed to provide economic integration in the Middle East by making use of Turkey's experiences, adding that Turkey's European Union membership would improve relations between the Middle East and the EU and be in favor of the region.
Syrian Economy and Foreign Trade Minister Ghassan al-Rifai was also in attendance at the signing ceremony.
(MS-AÖ) 20.07.2004