British Mandate: A Survey of Palestine: Volume I - Page 443

CHAPTER XIll.

further provides that Palestine shall pay to the Trans-Jordan Government, in respect of duties collected in Palestine on goods subsequently exported to and consumed in Trans-Jordan, a sum approximating to the duty collected in Palestine less the duty collected in Trans-Jordan on goods entering directly into that territory and subsequently exported to and consumed in Palestine. But tobacco, intoxicating liquors and alcohol are excluded from this arrangement and import duty is collected on importation of these commodities into either country. Foreign goods imported by Trans-Jordan through Palestine are allowed to pass in transit into Trans-Jordan and the duty thereon is collected in Trans-Jordan under the customs tariff of that country.

4. Palestine has also an Agreement with Egypt (concluded in 1936*) with a view to encouraging the Bow between them of such commodities as are a speciality of the one country and are not produced in the other. The search for such specialities was excluded from the scope of the negotiations which were undertaken by a trade delegation which visited Egypt in May, 1935. Provision was made in the Agreement, however, for periodical meetings to discuss the facilities that might be granted by either country for the importation into the other country of such specialities. In the meantime it was found possible to provide for seasonal reductions of customs tariff so that Palestine produce could be exported to Egypt at a low rate of duty when the Egyptian produce of the like commodity was no longer largely on the market, and vice versa. As a result of negotiations, Egypt also agreed to lower the import duty on household soap and seasonally on oranges, grapefruit and water-melons, and to afford in respect of soap certain facilities including the protection of local trade-marks. Ou the other hand, Palestine agreed to a seasonal lowering of the duty on water-melons and has lifted the embargo which had been placed under the Plant Protection Ordinance on the importation of mangoes and tomatoes.

5. An Agreement was concluded in 1937 with Iraq for the purpose of increasing transit trade through Haifa port by establishing a free zone, and the developing of the direct trans-desert route between Iraq and Palestine; this Agreement was allowed to lapse in 1941 by mutual consent of the contracting parties since in practice it was found that little if any value accrued to Palestine.

6. Particulars of trade between Palestine and Middle East countries will be found in section 3 of this chapter.
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* Vide pages 1210 et seq of Vol. III of 1936 legislation.

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