The CA administers work permits for Palestinians and liaises with the Palestinian Authority on key issues including security, and infrastructure.
It also has authority over construction by Palestinians and Israelis in Area C of the West Bank.
It comes amid spiralling tensions in the region, with a spate of recent attacks marking one of the West Bank's worst spates of unrest since 2015.
Mr Smotrich, a far-right figure, has previously attracted fierce criticism from Naftali Bennett in 2016 after tweeting his support for the separation of Arab and Jewish women in maternity facilities.
Last year he garnered backlash for claiming “Ben Gurion should have finished the job” by removing all Israeli Arabs from Israel during the founding of the state, and he has supported the reform of Israel’s judicial system to make it more religious.