Israel and the United Arab Emirates announced today (Friday) the conclusion of negotiations for a free trade agreement between the two countries, which includes issues related to trade in goods, including regulation and regulation, customs, trade in services, cooperation, government procurement, e-commerce and intellectual property rights. This is a full and first free trade agreement with an Arab state, which takes place so soon after the establishment of diplomatic relations.
The issue was discussed at a meeting between Prime Minister Naftali Bennett and heir apparent Sheikh Muhammad bin Zayed in Abu Dhabi last December, where it was agreed to speed up the signing talks, as well as at their meeting in Egypt last week.
Bennett at a reception in Abu Dhabi, Photo: Haim Tzach / GPO
95% of the products traded between the countries are included in the agreement and will be exempt from customs immediately or gradually: food products, agriculture, cosmetics, medical equipment, medicines and more.
The agreement is expected to enter into force after the signing of Minister Barbibai and its emirate equivalent and ratification process in both countries.
Prime Minister Naftali Bennett commented on the agreement: "This is an important moment in the relationship between the State of Israel and the Emirates. The good relations that have already been established between the countries are being strengthened today in the form of a free trade agreement. Good at lower prices. "
Economy and Industry Minister Orna Barbibai added: "The end of the negotiations is a significant and historic milestone in the relationship between the countries and we will continue to help the Israeli business community establish trade ties in the UAE through the Free Trade Agreement."
"Significant milestone in international relations": Minister Barbibai, Photo: Saria Diamant
The Foreign Minister of the Emirates, Dr. Thani al-Ziudi, welcomed the agreement, adding: "The new deal paves the way for our business communities to start a new era of cooperation in preferred sectors such as agricultural technologies, medicine, new energy solutions and more."
In September 2020, the Avraham Agreements were signed, which established diplomatic relations between the State of Israel and the United Arab Emirates.
About a year later, in November 2021, negotiations began on a free trade agreement between the parties which came to an end today.
Relations between Israel and the United Arab Emirates have great economic potential in a variety of areas, including the geographical and cultural proximity of the nations and the unique characteristics of the United Arab Emirates, which is the second largest economy in the Arab world (after Saudi Arabia). And advanced solutions in which Israel has a relative advantage.
Since the establishment of the Abrahamic Agreements, trade between the United Arab Emirates and Israel has increased significantly, reaching 20,000 dollars in 2021.
The potential for economic trade between the two economies is much greater and extends across many areas, including exporting solutions in the fields of energy, digital health and medical equipment, water, agricultural solutions, cyber solutions, technologies in the field of pin-tech and diamond exports.
Abu Dhabi, Photo: Getty Images
The agreement also promotes the field of trade in services between the countries, by ensuring regulatory certainty in areas such as e-commerce, professional and business services, distribution services (wholesale and retail), computing and more.
Now, at the end of the negotiations, the agreement will be legalized, then signed by the ministers and will go through a process of ratification in each of the countries. At the end, the agreement will enter into force, when it is expected to help increase trade The great economic nature of the ties between Israel and the United Arab Emirates.
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