Israel and the United Arab Emirates on Friday announced the conclusion of negotiations on a historic, comprehensive bilateral free-trade agreement.
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The agreement, negotiated by Economy and Industry Minister Orna Barbivay and UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi, is the first full free-trade agreement between Israel and an Arab country, according to the Economy and Industry Ministry.
Jerusalem and Abu Dhabi formally established relations in 2020 as part of the US-brokered Abraham Accords that also included Bahrain and Morocco.
The agreement is "comprehensive and significant" and includes issues such as "trade in goods such as regulation and standards, customs, trade in services, cooperation, government procurement, electronic trade and maintaining trademarks," the Prime Minister's Office said in a statement.
The deal stipulates that "95% of the goods traded between the two countries will be exempt from customs either immediately or gradually. This includes foods, agriculture, cosmetics, medical equipment, drugs, and more. The agreement is expected to take effect following the signing by Economy and Industry Minister Orna Barbivay and her Emirati counterpart and the ratification process in the two countries."
A separate UAE statement said the agreement would substantially reduce or remove tariffs on a wide range of goods, enhance market access for services and promote investment flows.
"This is an important moment in relations between the State of Israel and the UAE," Prime Minister Naftali Bennett said. "Today, the good relations that have already been forged between the two countries are being strengthened in the form of a free trade agreement that will significantly upgrade economic cooperation for the benefit of the citizens of both countries.
"There will be more trade, more jobs and good products at lower prices. At my last meeting with the Crown Prince, Sheikh Mohammed bin Zayed, in Sharm El-Sheikh, we agreed to accelerate the process and bring it to conclusion within days, and so it was."
Foreign Minister Yair Lapid welcomed the agreement, which he said was inked in the spirit of the Negev Summit, that called for continuous cooperation, continuity in contacts and has led to tangible achievements that will improve the lives of the citizens of the State of Israel and of the peoples of the region.
Barbivay said, "Since the establishment of the Abraham Accords, the Economy and Industry Ministry has been working to expand economic relations between Israel and the UAE and to fully utilize their economic potential. The conclusion of the negotiations is a significant and historic milestone in bilateral relations. We will continue to assist the Israeli business community to establish commercial ties in the UAE via the free trade agreement, the ministry's economic attaches and additional assistance tools that the ministry will put at their disposal."
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