The Gaza-Jericho Agreement, signed in Cairo on May 4, 1994, was the first accord to move governing authority from the Israeli military to a newly created Palestinian Authority, covering the Gaza Strip and a defined enclave around Jericho in the West Bank. Yasser Arafat and Yitzhak Rabin signed it, with the United States, Russia, and Egypt as formal witnesses.1UN Peacemaker. Agreement on the Gaza Strip and the Jericho Area (Cairo Agreement) It followed the 1993 Oslo I Accord and opened a five-year interim period intended to build toward a permanent settlement.2The Knesset. Agreement on the Gaza Strip and the Jericho Area The document set the rules for governance, policing, borders, jurisdiction, and the economy across two geographically separated territories.
Where the Agreement Applied
Two areas came under the accord: the entire Gaza Strip and a zone of roughly 65 square kilometers around Jericho. Israeli forces had to begin withdrawing on signing and finish within 21 days.3Institute for National Security Studies. Agreement on the Gaza Strip and the Jericho Area
The withdrawal was not total. Two categories of territory stayed under full Israeli authority, marked by blue lines on the agreement’s maps. The first was the Settlement Areas, which included the Gush Katif and Erez blocs and other individual settlements inside Gaza. The second was the Military Installation Area, a strip along the Egyptian border that also included the village of Dahaniya pending a general amnesty for its residents.2The Knesset. Agreement on the Gaza Strip and the Jericho Area Israeli forces also kept the right to use specified roads to move between settlements and Israel.
The Palestinian Authority and Its Powers
The agreement created the Palestinian Authority as a 24-member body holding legislative, executive, and judicial powers within the transferred territories.2The Knesset. Agreement on the Gaza Strip and the Jericho Area It functioned as a cabinet with departments for civilian governance, could appoint officials, and could issue binding regulations across Gaza and Jericho.
Legislative power came with an Israeli veto lane. Any law the Authority passed had to be sent to a Legislation Subcommittee. Israel had 30 days to challenge a law as exceeding the Authority’s jurisdiction or conflicting with the agreement. If the Subcommittee could not resolve the objection within 30 days, the dispute moved to the Joint Israeli-Palestinian Liaison Committee, which had another 30 days to settle it.2The Knesset. Agreement on the Gaza Strip and the Jericho Area
Jurisdiction over people, not places, defined criminal and civil authority. The Palestinian Authority held judicial power over Palestinians in Gaza and Jericho. Israel kept jurisdiction over Israeli citizens and over settlements even when Israelis were physically inside Palestinian-controlled areas, exercised through its military government, which retained the legislative, judicial, and executive powers necessary for that purpose.1UN Peacemaker. Agreement on the Gaza Strip and the Jericho Area (Cairo Agreement) An Israeli who committed a crime in Gaza faced an Israeli court.
Police and Security
Internal security fell to a new Palestinian Police Force capped at 9,000 personnel across all branches.4United Nations. Agreement on the Gaza Strip and the Jericho Area The agreement fixed what the police could hold: 7,000 light personal weapons, up to 120 machine guns of .30 or .50 caliber, and up to 45 wheeled armored vehicles of an agreed type, with 22 of those armored vehicles designated to protect Authority installations. Heavy artillery and any weapons beyond this list were prohibited. New arms, ammunition, or equipment from any source had to be cleared through the Joint Security Coordination and Cooperation Committee.5Ministry of Foreign Affairs. Gaza-Jericho Agreement Annex I
The armored vehicles carried geographic restrictions. Using them near settlements, along lateral roads, or within the security perimeter required approval through the relevant District Coordination Office, and even driving them along Gaza’s central north-south road required advance notification.5Ministry of Foreign Affairs. Gaza-Jericho Agreement Annex I
Coordination was constant. The Joint Security Coordination and Cooperation Committee handled security friction, and a parallel Joint Civil Affairs Coordination and Cooperation Committee handled administrative matters.4United Nations. Agreement on the Gaza Strip and the Jericho Area Joint Israeli-Palestinian patrols operated along shared roadways and near settlement boundaries.
What Israel Kept: Sea, Air, and External Defense
Beyond the settlements and border strip, Israel retained control of the surrounding environment. The agreement divided the waters off Gaza, out to 20 nautical miles, into three zones. Zone K along the northern boundary (1.5 nautical miles wide) and Zone M near the Egyptian maritime border (1 nautical mile wide) were closed areas reserved for the Israeli Navy. Zone L, the central band, was open for Palestinian fishing and recreation, though fishing boats could not leave Zone L for open sea and recreational craft were limited to 3 nautical miles from shore.5Ministry of Foreign Affairs. Gaza-Jericho Agreement Annex I
Airspace worked the same way. Israel expressly retained responsibility for defense against external threats from the sea and the air, along with all powers necessary to carry out that responsibility, which meant full control of Gaza’s airspace for military and aviation purposes.2The Knesset. Agreement on the Gaza Strip and the Jericho Area
Border Crossings and Movement Between the Two Areas
External crossings at the Rafah terminal on the Egyptian border and the Allenby Bridge toward Jordan were split into a Palestinian wing and an Israeli wing. Palestinian residents and visitors used the Palestinian wing; Israelis and others used the Israeli wing. Both sides could inspect luggage, and Israeli and Palestinian officers jointly staffed magnetic gates and document control.5Ministry of Foreign Affairs. Gaza-Jericho Agreement Annex I A joint Liaison Bureau at each crossing handled disputes.
Gaza and Jericho were separated by Israeli territory, so movement between them required a safe passage arrangement. Detailed procedures were finalized later in the 1998 Wye River Memorandum, which set crossing points at Erez for people and vehicles, Karni for goods, Tarkumya for all three, and an additional point near Mevo Horon.6UN Peacemaker. Protocol Concerning Safe Passage between the West Bank and the Gaza Strip
Palestinians needed a safe passage card, valid for one year and good for multiple round trips. Applications went through the Palestinian side first and then to Israel, which had two working days to respond. Children under 16 traveling with a parent did not need their own card. The passage ran during daylight hours for a minimum of ten hours per day and was closed on Yom Kippur, Israel’s Memorial Day, and Independence Day. Using the passage granted no right to be present in Israel beyond the designated route, and Israel could suspend or modify passage for security reasons.6UN Peacemaker. Protocol Concerning Safe Passage between the West Bank and the Gaza Strip
The Economic Relationship
Economic ties were governed by the Protocol on Economic Relations, signed in Paris on April 29, 1994, and folded into the Cairo Agreement as Annex IV. Often called a customs union, the arrangement was more precisely a framework in which Israeli import policy, customs rates, and standards served as the floor. The Palestinian Authority could set higher rates but not lower ones on most goods, and both sides had to maintain the same import policies, classifications, and procedures for the majority of traded items.7UNCTAD. Protocol on Economic Relations between Israel and the PLO
Because most Palestinian imports moved through Israeli ports and checkpoints, Israel collected duties and taxes on the Authority’s behalf and cleared them through a fiscal transfer system. Import tax revenue followed the final destination principle: if goods ended up in Gaza or Jericho, the revenue went to the Palestinian Authority even when an Israeli importer handled the shipment. Transfers were to occur within six working days of collection.8Peace Agreements Database. Gaza-Jericho Agreement Annex IV – Protocol on Economic Relations
Income tax from Palestinian workers was split by workplace. Israel transferred 75 percent of income taxes collected from Gaza and Jericho residents working inside Israel, while the full amount of income taxes from those working in the settlements went to the Palestinian Authority. VAT revenues were cleared monthly against exchanged invoices, with net balances settled within six days of each meeting.8Peace Agreements Database. Gaza-Jericho Agreement Annex IV – Protocol on Economic Relations The Israeli shekel remained the primary currency for trade, alongside the Jordanian dinar and the U.S. dollar as accepted means of payment. The protocol also authorized a Palestinian Monetary Authority to regulate banks, manage reserves, and settle foreign currency transactions, though it could not issue a Palestinian currency.
How the Agreement Ended
The Cairo Agreement was built to be temporary, and it was expressly replaced by the Israeli-Palestinian Interim Agreement of September 28, 1995, commonly known as Oslo II. Article XXXI of the Interim Agreement stated that the Gaza-Jericho Agreement, the Preparatory Transfer Agreement, and the Further Transfer Protocol would all be superseded.9United Nations. Israeli-Palestinian Interim Agreement on the West Bank and the Gaza Strip The Palestinian Authority continued its functions until a new Palestinian Council was inaugurated, at which point the Council took over its obligations. The police force created in 1994 was folded into the broader Palestinian Police, and several of the Cairo Agreement’s maps covering Gaza, police deployment, and maritime zones were carried directly into the Interim Agreement.