The deal affects small volumes of trade. EU imports from Gaza and the West Bank were worth 6.1 million euros ($8.02 million) in 2009 and were mostly early potatoes, olive oil and seeds such as soya and sunflower seeds, according to EU data.
To protect EU farmers, fruit and vegetables, including tomatoes, lemons and grapes, will enter the EU at a minimum import price or face duties. The accord must be ratified by EU members, the European Parliament and Palestinian authorities.
"Further opening to the EU market is expected to support the development of the economy of the West Bank and the Gaza Strip through increased export performance," the EU's executive Commission, which negotiates trade on behalf of the bloc, said in a statement.
The deal aims to benefit only Palestinian products, the Commission said -- a reference to the thorny issue of farm goods from Jewish settlements in the disputed territories, which previously benefited from EU concessions to Palestine.
"We are aware that the true origin is a potential problem, so we shall be watching that closely," said Commission spokesman Roger Waite.
A report by Human Rights Watch published this month said Israeli settlements in the West Bank benefit from a wide array of Israeli government subsidies, tax breaks and preferential access to export channels.
Thes deal forms part also of EU plans to open up trade and investment with the Mediterranean rim along North Africa and the Middle East. (Reuters)
