Israel signed a “groundbreaking” free trade agreement with the United Arab Emirates (UAE) on Tuesday, its first with an Arab country.
The deal comes as trade between the two countries has reached a staggering $2.5 billion in only twenty months since the Trump administration brokered the so-called Abraham Accords normalizing ties between Israel and several Arab states.
“Businesses in both countries will benefit from faster access to markets and lower tariffs as our nations work together to increase trade, create jobs, promote new skills and deepen cooperation,” Emirati envoy to Israel, Mohamed Al Khaja, tweeted.
Israeli Minister of Economy and Industry Orna Barbivai, who was in Dubai Tuesday to sign the agreement with his Emirati counterpart, Abdulla bin Touq Al-Marri, said it was a deal of “historic importance.”
“Together we will remove barriers and promote comprehensive trade and new technologies, which will form a solid base for our joint path, will benefit citizens, and make it easier to do business. This is a free, full, first trade agreement with an Arab state, which is taking place so soon after the establishment of diplomatic relations,” Barbivai said.
The deal nixes customs taxes on 96 percent of trade, including food products, agriculture, and medication, and is hoped to generate over a $1 trillion of trade between the two countries over the next decade.
Al-Marri, the Emirati minister of economy, said the deal “will create a new paradigm in the region” and “can prove to nations and governments around the world that collaboration and dialogue are the best ways to turn challenges into opportunities.”
