After formally establishing ties in 2020, Israel’s Economy Ministry and the UAE’s Foreign Trade Minister announced on Friday that they had reached an agreement on a free trade pact.
According to UAE Economy Minister Abdulla Bin Touq Al Marri, bilateral trade between the UAE and Israel is worth between $600 million and $700 million.
The United Arab Emirates and Israel formally established ties in 2020 as part of the Abraham Accords, which were negotiated by the United States and included Bahrain and Morocco.
According to the Israeli Economy Ministry, the current deal covered 95 percent of traded products, which would be customs-free either immediately or gradually, including food, agriculture, and cosmetic products, as well as medical equipment and medicine.
The deal covered regulation, customs, services, government procurement, and electronic trade, and it would take effect after the countries’ economy ministers signed and ratified it, according to the statement, but no timeline was given.
The agreement, according to a separate UAE statement, will significantly lower or eliminate tariffs on a wide range of goods, improve market access for services, and stimulate investment flows.
It would also develop channels for the expansion of small and medium-sized businesses.
On Twitter, United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi remarked, ‘This landmark accord will build on the historic Abraham Accords and consolidate one of the world’s most important and promising rising commercial relationships.’