The protocol stipulates that the Israeli currency, the New Shekel of Israel (NEI), is used in the Palestinian territories as a circulating currency, which is legally used as a means of payment for all purposes and is accepted by the Palestinian Authority and all its institutions, local authorities and banks. Palestinians are not allowed to adopt their own Palestinian currency independently of each other.  Imports from third countries and exports to third countries, including quantitative restrictions, are subject to Israeli scrutiny and the protocol has given Israel exclusive control over external borders and the collection of import taxes and VAT. The agreement provides that Palestinian trade with other countries would continue to pass through Israeli sea and air ports or through border crossings between the Palestinian Authority and Jordan and Egypt, also controlled by Israel.  From 2016, the Rafah crossing will be controlled by Egypt, but Egypt supports the blockade of the Gaza Strip. Chart 11 shows the intense impact of the conflict and the changing political situation on Israeli-Palestinian trade. The Palestinian share of all Israeli merchandise imports fell by about 60% after the outbreak of the First Intifada, reaching about 1%. Then, after some recovery, it fell to less than 1 percent for nearly a decade after the second intifada. The new trend of rapid growth in Palestinian exports to Israel in recent years has resulted in an increase of up to 1.5% between 2015 and 2016. The Paris Protocol (PP) is a trade agreement reached on 9 April 1994 in Paris between the Palestine Liberation Organization (PLO) and the Government of the State of Israel, which establishes the basic principles of free trade between the two parties. Russia and Palestine mutually expand the status of the most favoured nation in terms of trade. Imports and exports between the two parties are exempt from tariffs for the following goods: the resumption of trade between Israel and the Palestinian Authority requires the lifting or easing of restrictions on the Palestinian economy.
Priority measures include improving dual use and access to land, developing water and energy infrastructure, and modernizing Annex V of the 1995 Interim Agreement (also known as the Paris Protocol), which governs economic and trade relations between Israel and the Palestinian Authority, to meet the current needs of the Palestinian economy. In addition, the projects should aim to facilitate the growth of Palestinian exports to and through Israel, as well as in Arab and other markets; there should be more cooperation in areas such as tourism and information technology.