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The accord, which was signed in February in Brussels by Palestinian Authority leader Yasser Arafat, covers a five-year period and offers enhanced economic cooperation, including reduced tariffs for Palestinian exports to E.U. member-states.

Under the accord, the Palestinians are recognized as full partners of the European Union. Several Mediterranean countries, including Israel, have similar association accords with the 15-member European Union.

The European Union has been the leading financial supporter of the Palestinian Authority.