Israeli, Palestinian ministers meet for economic development

Israel's Vice Prime Minister Silvan Shalom on Wednesday held talks with Palestinian Economy Minister Bassem Khoury on economic issues, the highest level of bilateral meeting since the current Israeli government took office in April.

During the closed-door session in Jerusalem, the two men discussed a series of economic proposals, including easing restrictions on the entry of Palestinian businesspeople to Israel, boosting meat exports from Israel to the West Bank and dairy imports from the West Bank to Israel and allowing more Palestinians to seek medical care in Israel, local daily Ha'aretz quoted Israeli officials as saying.

Possible construction of joint industrial parks, a proposal that was aborted in the past due to violence between the two neighbors, was also among Wednesday's topics, added the report.

"Our objective is economic peace," Shalom was quoted as saying. "That doesn't prevent political dialogue, but rather, assists and gives it momentum."

For his part, Khoury said he looked forward to the meeting and that the objective was to improve the conditions of the Palestinians.

Economic peace is a basic tenet in Prime Minister Benjamin Netanyahu's diplomatic playbook, which he argued could help reduce violence and pave the way for more substantive talks to end the decades-old conflict. Yet critics say that such an approach might overshadow the political process.

Amid calls from the international community, the Netanyahu administration has carried out a number of moves to improve the life of Palestinians in the West Bank, including removing checkpoints and roadblocks and relaxing traffic restrictions on Palestinians.