So they created the "Jerusalem Arbitration Center," which is sponsored by chamber of commerce associations on both sides and slated to begin its work by the end of 2013. The goal is to give merchants and investors peace of mind, eliminating disincentives to expanding the trade relationship that totals $4 billion a year – Palestinians’ largest such relationship, by far. The court will consist of two Israelis, two Palestinians, and five international legal or arbitration experts. The Israeli and Palestinian governments have agreed to enforce the court's rulings.
"The trade community became a cash-based community, because there was no recourse if a check bounced," says Sam Bahour, a Palestinian businessman. "If [the arbitration court] gets traction, it could be something interesting."
As part of the revived push for a peace agreement, Israel, the US, and the Palestinians are devoting substantial time and attention to efforts to boost the Palestinian economy, believing economic growth would improve the environment for negotiations.
Many of the steps, such as ceding Israeli control over some parts of the West Bank so the land can be devoted to Palestinian economic projects and relaxation of restrictions on Palestinian movement, are likely to face opposition from hardliners in Israeli Prime Minister Benjamin Netanyahu’s cabinet. The US is also expected to transfer more aid for infrastructure projects