How the Peace Process (Probably) Killed the Two-State Solution

An Israeli border policeman takes up position during clashes with Palestinian demonstrators at a protest against Trump's decision on Jerusalem, near Ramallah, in the occupied West Bank March 9, 2018. REUTERS/Mohamad Torokman

Trump’s approach to the Israeli-Palestinian conflict may have finally convinced Palestinian leaders that they have more to lose by remaining in an American-dominated peace process.

President Donald Trump’s decision last December to recognize Jerusalem as Israel’s capital, overturning seventy years of U.S. policy and international consensus, marked a turning point in the American-sponsored peace process between Israelis and Palestinians. As one of the thorniest issues of the conflict, as well as a powerful religious and political symbol for billions of people around the world, Jerusalem has long been seen as the key to a final peace settlement. Trump’s announcement was met with praise and jubilation on the Israeli side as well as anger and condemnation by Palestinian leaders, who have since declared that they would no longer participate in an American-sponsored peace process. In retaliation, the administration cut U.S. assistance to Palestinian refugees by nearly 80 percent while promising further aid cuts if the Palestinians do not agree to return to the peace process. The bulk of the international community meanwhile, including most European nations and Washington’s Arab allies, have lined up against Trump’s Jerusalem declaration. For its part, the administration has rejected accusations that the move was aimed at predetermining the status of the Holy City, insisting it was merely “recognizing reality.”

Trump’s Jerusalem declaration however was not a “new approach” to resolving the conflict, as the administration has claimed, but the culmination of the steady erosion of U.S. policy and declining effectiveness of American mediation during the last twenty-five years. The decision to recognize Jerusalem may be seen as an attempt to resolve the many underlying contradictions of the peace process, not by restoring the internationally-accepted norms on which it is based or working to level the playing field between the two sides, but by rewriting the rules of the diplomatic game. While the prospects of an American-brokered peace deal were already quite slim, Trump’s approach to the conflict may have finally convinced Palestinian leaders that they have more to lose by remaining in an American-dominated peace process than from walking away. The increasingly dim prospects for a two-state solution however are not without cost for the United States.

Power and Politics

For decades, the world has looked to the United States as the only actor capable of brokering an Israeli-Palestinian peace agreement. This was true despite the uniquely close bonds between the United States and Israel and the extraordinary influence of the pro-Israel lobby on American decisionmakers, particularly on Capitol Hill. As peace process veteran, Aaron David Miller, put it, “We, the United States, may not be an honest broker, but we can be an effective broker.” This proposition assumed, however, that ending the Israeli-Palestinian conflict was in fact a major priority for the United States, if not a “vital” national-security interest as various administrations have claimed, and more importantly that American presidents were willing to overcome the constraints of domestic politics and the “special relationship” on at least those issues and moments that mattered most. Both of these assumptions were already in doubt before Donald Trump’s election and since his arrival in the White House have all but been laid to rest.

Since the early 1990s, the American-led peace process has operated on two core assumptions: first, that a credible peace settlement could be achieved without addressing the vast imbalance in power between Israel and the Palestinians, and secondly, that it would be possible (if not desirable) to subordinate internal Palestinian politics to the perceived needs of the peace process. Israel was not merely a party to a conflict but an occupying power that ruled over millions of Palestinians with whom it was negotiating. Yet throughout the last quarter century, successive U.S. presidents have been increasingly reluctant to use their considerable leverage with Israel to advance the peace process while actively working to prevent such pressure from the United Nations and other forums. This was based on a belief was that Israeli leaders would be more willing to “take risks for peace” if they felt secure politically and militarily. Not every president agreed with this logic, but most have adhered to it, whether out of conviction or as the political path of least resistance.

Whereas Israel’s special relationship with the United States was largely immune from the ups and downs of the peace process, Washington’s engagement with Palestinian leaders remained heavily dependent on both Israel and the peace process. It wasn’t simply that American officials had a “tin ear” for Palestinian domestic politics, for many policymakers on both ends of Pennsylvania Avenue peace would also require transforming certain aspects of Palestinian politics to turn them into a suitable peace partner. Given the Palestinian Authority’s (PA) heavy reliance on foreign aid and Israeli goodwill for its survival, Palestinian leaders were subject to an array of conditions and restrictions, many of which were enacted into U.S. law, regarding their security performance, internal governance and diplomatic activities.

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