goods at customs rates differing from those prevailing in Israel. It will also be permitted to import goods from Arab countries in agreed limited quantities.

• Local Markets and Tourism: There will be free movement of goods manufactured in the autonomous areas. Agricultural produce from the autonomous areas will enter Israel freely with the exception of tomatoes, cucumbers, potatoes, eggs, and broilers ( chickens ) for which there will be import quotas. Tourists will move freely between Israel and the autonomous areas.
  
  
• Monetary Policy: The Palestinian Authority will establish a monetary authority whose main functions will be the regulation and supervision of the banks operating in the area.
  
  
• Taxation: The Palestinian Tax Administration will conduct its own direct tax policies. Israel will transfer to the Palestinian Authority 75 percent of the revenues from income tax collected from Palestinians employed in Israel. A value added tax ( VAT ) will be operated by the Palestinian Authority with rates around 15 - 16 percent.
  
  
• Labor: The guiding principle in this sphere is to enable mutual movement of labor. The rights of Palestinian workers employed in Israel will be preserved while a social security system is established by the Palestinian Authority.
  

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