Palestine: Trade Profile

Foreign Trade in Figures

Palestine is open to foreign trade, but its relative share in the economy has declined since the early 2000s as the country gradually lost access to international markets. Palestine mainly exports furniture; bedding, mattresses, etc. (13.0%), articles of stone, plaster, cement, asbestos, mica or similar materials (12.2%), iron and steel (11.9%), plastics and articles thereof (9.0%), salt; sulphur; earths and stone; plastering materials, lime and cement (4.9%), aluminium and articles thereof (4.1%). On the other hand, imports are led by mineral fuels (24.4%), residues and waste from the food industries (5.7%), electrical machinery and equipment and parts thereof (4.5%), vehicles (4.5%), machinery and mechanical appliances (3.9%), iron and steel (3.8%), plastics and articles thereof (3.6% - data ITC 2022).

Israel is by far the largest trading partner of Palestine, both for imports (52.3% of the total in 2022) and exports (85.2%). In 2022, Jordan (6.5%), the UAE (1.8%), and the U.S. (1.2%) were the other main export destinations; whereas imports came chiefly from Turkey (10%), China (7.4%), and Jordan (3.7% - data ITC). The government's economic and trade policies focus on exports, which are restrained by Israeli blockades, particularly for those from Gaza. Customs tariffs are comparatively low. A license is required to import goods into the West Bank and Gaza. However, no license is required for export companies, with the exception of foodstuffs, chemicals, and agricultural products. The Palestinian economy is engaged in a regional and international integration process. Palestine has signed free trade agreements and business association agreements with the European Union, the United States, Egypt, Russia, Turkey, and GAFTA, among other countries. In recent years, Palestine has sought to diversify its trade relations and reduce its dependence on Israel. It has signed trade agreements with several countries in the region, including Saudi Arabia, Qatar, and the United Arab Emirates, and has sought to develop new trade routes through the Mediterranean Sea and through Jordan. The Palestinian Investment Promotion Agency (PIPA) included several sectors in its National Export Strategy: stone and marble; tourism; agriculture, including olive oil, fresh fruits, vegetables, and herbs; food and beverage, including agro-processed meat; textiles and garments; manufacturing, including furniture and pharmaceuticals; information and communication technology (ICT); and renewable energy. The outbreak of the Israeli-Palestinian conflict is expected to have a severe impact on the territories’ foreign trade, as they are dependent on Israel as it controls all international passages.

The political situation, the restrictions on the movement of goods and the blockade imposed on Gaza are among the key barriers to trade. Palestine has a structural trade deficit: according to figures from the Palestinian Central Bureau of Statistics, in 2023 the country exported USD 1.56 billion worth of goods, while imports totaled USD 7.7 billion (-1.4% and -5.5% year-on-year, respectively) resulting in a trade deficit of USD 6.18 billion. Israel accounted for 86% of total exports and 57.3% of imports.

Main Partner Countries

Source: Comtrade, Latest Available Data

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To go further, check out our service Import-Export Flows

Main Services

Source: United Nations Statistics Division, Latest Available Data

List of tariffs and local taxes that apply to your product on our service Customs Duties

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Latest Update: May 2024