Economic relations between Israel and the territories were spelled out in the agreement. The major elements of the agreement were:
- the establishment by the Palestinian Authority of a monetary authority to regulate and supervise banks, foreign currency reserves and transactions.
- The Palestinians would levy income tax on individuals and corporation, property and municipal taxes.
- Israel and the Palestinians would have similar import policies.
- Palestinians would be able to import mutually agreed goods at customs rates different than those prevailing in Israel.
- The Israeli Shekel would remain legal tender in the areas until an agreement is reached on Palestinian currency.
- The Palestinian Authority would impose a value added tax similar to Israel’s (then 15-16%).
This agreement would initially prevail in Gaza and Jericho, and would be applied to other territories as they were evacuated by Israel.The agreement was signed in the French Foreign Ministry by Israeli Finance Minister Avraham Shochat and the PLO chief negotiator, Ahmad Korei (Abu Ala). It became Annex IV of the 4 May 1994 Gaza-Jericho Agreement.