RAMALLAH / PNN/
The Palestinian Ministry of National Economy, the European Union (EU), and the United Nations Office for Project Services (UNOPS) officially launched EU4Commerce, an €8.5 million strategic project designed to modernize trade infrastructure and improve the movement of goods.
The initiative focuses on practical, technical solutions to upgrade commercial crossings, streamline logistics, and lower cross-border transaction costs for local businesses. The primary goal of the project is to make trade faster, more predictable, and less expensive for Palestinian exporters and importers. Currently, high transaction costs and long delays at crossings create severe bottlenecks for local businesses.
To address these challenges, the project will implement a 36-month, two-phased approach. Phase 1 focuses on feasibility and frameworks, involving localized technical and economic assessments to design optimal, demand-driven operational frameworks. Following this, Phase 2 centers on infrastructure development, which includes the anticipated establishment of a modern Trade Logistics Center in Jericho.
By shifting customs procedures, inspections, container sealing, and cold-chain storage upstream to the anticipated logistical trade facility in Jericho, the project aims to transform the King Hussein Bridge from a bottleneck into an efficient transit gateway.
The project is expected to deliver significant benefits, including a 30% reduction in border clearance times and cross-border transaction costs against the 2026 baseline. Additionally, it aims to preserve goods through improved cold-chain storage infrastructure, directly benefiting agricultural sectors like olive oil, dates, and fresh herbs, while increasing market access to make Palestinian products more competitive in both regional and global markets.
“This project comes at a critical stage that requires strengthening the Palestinian economy's resilience and its ability to adapt to increasing challenges, foremost among them being those related to trade, transport, and logistics. Because trade is the artery of the national economy and a primary driver of growth, investment, and job creation, developing logistics infrastructure has become a national and strategic priority in order to facilitate the private sector trade movements,” said the Minister of National Economy Mohammad Al Amour.
He added, “the project serves as a vital tool for enhancing the capacity of Palestinian government institutions to manage and monitor trade and customs operations. This aligns with ongoing efforts to build modern, effective economic institutions and strengthen Palestinian economic sovereignty. The project may encompass facilities such as warehouses and storage units, cold storage, packaging centers, and inspection areas, as well as related administrative and service offices.”
On his part, the EU Ambassador Alexandre Stutzmann said, “the EU takes pride in being the principal donor for Palestine in the area of trade support. The launch of the EU4Commerce project is a leap toward revitalizing trade, driving sustainable economic growth, and creating much-needed jobs right here in Palestine.”
"This project is demand-driven, technically sound, and focused entirely on practical solutions," said Ms Karuna Herrmann, Director of the UNOPS Jerusalem Office. "Success means more efficient procedures, lower costs, and improved opportunities for businesses to grow, contributing step-by-step to a more resilient economy."
Funded by the European Union and implemented by UNOPS in close coordination with the Ministry of National Economy, this project establishes a transparent governance framework. This initial infrastructure serves as a scalab
