Finance
A free trade agreement (FTA) between Israel and the United Arab Emirates (UAE) has gone into effect, marking the Jewish state’s first such economic agreement with an Arab country.
Officials from both countries signed a customs agreement on Sunday, paving the way for the free trade agreement signed in May 2022 to take effect, according to an official statement.
The customs agreement was signed in the presence of Netanyahu by Israeli Foreign Minister Eli Cohen and UAE Ambassador to Israel Mohamed Al Khaja, according to Xinhua.
The free trade agreement is expected to reduce customs duties and lower the cost of living while increasing business between the two countries, according to the statement.
Additionally, Israeli firms will have access to UAE government tenders, according to the statement.
“The taking effect of the free trade agreement is important news for the Israeli economy, for the strengthening of ties with the UAE and is further testament to the importance of the Abraham Accords,” Cohen said.
The Abraham Accords are a series of deals struck by Israel in 2020 with the UAE, Bahrain, and Morocco to establish diplomatic relations.
According to the Israeli Foreign Ministry, the UAE is Israel’s sixteenth largest trading partner, with bilateral trade volume expected to exceed $2.5 billion by 2022.
Israel is currently negotiating a free trade agreement with Bahrain.
Source:IANS
