This study aims at examining how the Euro-Mediterranean partnership would affect the strategies of the Government of Jordan and the Palestine National Authority towards developing their agricultural sectors. Two analytical tools -the Policy Analysis Matrix (PAM) and EU Market Analysis - are employed. A key message is that the export-windows and the maximum amount of allowed export quota to the EU markets stated in the EU-Med agreements should be renegotiated. Key issues investigated include the identification of the main horticultural crops that could be produced and exported from Jordan and the Palestinian Authority Territories to the EU countries without competing with EU production seasons and whether these crops efficiently utilize the limited water resources of Jordan and Palestine. The authors also look into the major economic and social implications of exporting the expected volumes of the selected crops in terms of national income (GDP), investment, employment and water.