World Big News: Israel, UAE sign 'historic' free trade agreement

Israel Minister of Economic Affairs and Industry and the UAE Minister of Foreign Trade have said that negotiations for a free trade agreemen...

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Israel Minister of Economic Affairs and Industry and the UAE Minister of Foreign Trade have said that negotiations for a free trade agreement between Israel and the UAE have been completed.

 

A round of talks took place in Egypt last month between Israeli Prime Minister Naftali Bennett and Crown Prince Mohammed bin Zayed Al Nahyan of Abu Dhabi, a powerful leader of the United Arab Emirates.

According to the Qatari news agency Al Jazeera, UAE Minister of Economic Affairs Abdullah bin Touk Al Murri had said in September that the volume of bilateral trade between the UAE and Israel is between  600 million and  700 million.

The UAE and Israel formally established relations in 2020 under the US-brokered Abraham Agreement, which also includes Bahrain and Morocco.

 

Also read: Israeli PM first visit to UAE, meeting with Crown Prince

The Israeli Ministry of Economic Affairs said in a statement that the latest agreement covers 95% of the products traded, which will be immediately or gradually exempted from customs duties. Agricultural and cosmetic products as well as medical devices and medicines.

The agreement covers regulation, customs, services, government procurement and trade in electronic goods and will take effect once the countries' economic ministers have signed and ratified it, the statement said. However, no timetable was given for the implementation of the agreement.

Negotiations for a free trade agreement between Israel and the UAE have been going on since November last year.

The four rounds of talks between the two countries have come to an end, one of the four rounds of talks last month between Israeli Prime Minister Naftali Bennett in Egypt and Crown Prince Mohammed bin Zayed Al Nahyan of Abu Dhabi.

Also read: Israeli PM first visit to Egypt in a decade, meeting with President Abdel Fattah al-Sisi

Israeli Prime Minister Naftali Bennett said that the good relations established between the two countries today have been strengthened by this free trade agreement, which will significantly improve economic cooperation for the benefit of the citizens of both countries.

The UAE said in a separate statement that the agreement would significantly reduce or eliminate a wide range of goods taxes, increase access to markets for services and increase investment opportunities. And the agreement will also create a mechanism for the expansion of small and medium-sized enterprises. 

 

 

The UAE Minister of State for Foreign Trade Thani Al-Zayudi said in a statement on Twitter that the landmark agreement would be based on the historic Ibrahim Agreement and would strengthen the world's most important and promising trade relationship.

On the other hand, Palestinian officials have accused the countries involved in the Israeli occupation of trying to normalize relations with Israel last year.

Israel hosted a summit of top diplomats from the United States and three Arab states, the United Arab Emirates, Bahrain and Morocco, this week, with which Israel has normalized relations since 2020.

Sudan has also agreed to normalize relations with Israel, but has not yet finalized an agreement.