RAMALLAH, January 11, 2012 (WAFA) – The European Union gave the Palestinian Authority 11 million euros to support the private sector and for capacity building, according to an agreement the two sides had signed in Ramallah on Wednesday.

Prime Minister Salam Fayyad and acting EU representative to the Palestinian Territory, John Gatt-Rutter, signed the agreement at Fayyad’s office.

The money would go for supporting the private sector in the West Bank, mainly helping farmers in Area C, which is under full Israeli control, overcome difficulties caused by Israeli measures., said Gatt-Rutter following the signing ceremony.

It would also go for revitalizing the private sector in the Gaza Strip and for strengthening the capacity of the Ministry of Economy, he added.

“For the last couple of years supporting the Palestinian private-sector and facilitating Palestinian trade has been a key policy objective for the EU,” said Gatt-Rutter.

“We have stood by Palestinian businessmen in the West Bank but also in Gaza and we intend to continue through the activities put in place by today's agreement,” he said.

Gatt-Rutter added, “Over the course of the next three and a half years we will build on the important work the PA and the EU have initiated to strengthen Palestinian private enterprises to become more competitive and to widen their market opportunities. This will be backed by strengthening the capacity of the Ministry of National Economy and other relevant institutions in supporting the private sector and formulating trade policies.”

By reinforcing the capacity of the Ministry of Economy and related institutions, the EU will help integrate the Palestinian economy into the multilateral trading system, such as the World Trade Organization, and provide technical assistance to develop internal expertise and capacities to help formulate policies, said a press release by the EU office in Jerusalem.

The agreement is part of a package of support to the Palestinians initially announced by the European Commission in August 2010.

The PA’s Private-Sector Reconstruction Program in Gaza – a first large scale initiative supporting the business community in Gaza launched in 2009 - has been one of EU's key projects supported with €22 million.

A €3 million program targeting trade diversification has also started in December 2011.The EU has taken concrete actions to open its markets to Palestinian exports under the duty free, quota free agreement (agricultural, fish and fishery products) which became effective on January 1 of this year.

F.R.