The paper discussed Israel’s obligations toward Palestinian foreign trade under the PP, besides the Israeli restrictions imposed on Palestinian foreign trade, and the possibilities for Palestine to have membership of WTO as a separate customs territory by adopting the descriptive analytical approach methodology. It appears that the main obstacle is Israeli control over the borders and the restrictions imposed on the movement of goods and persons between Palestine and the third countries because of security excuses, besides the Israeli taxes collection policies that affect the PNA budget, violating the bilateral agreements and international treaties. However, this does not mean that Palestine does not have full autonomy in the conduct of its external commercial relations, such as the free trade agreements between Palestine and third countries, and Palestine set its tariffs according to Israeli minimum tariff barriers allowing Palestine to apply for the WTO’s membership.