Israel Signs Historic Free Trade Agreement with UAE

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.

Israel and the UAE’s top diplomats visited the Holocaust Memorial in central Berlin on Tuesday, in a “historic” first meeting between the newly allied foreign ministers. https://t.co/8hLeZ5g1MI

— Breitbart News (@BreitbartNews) October 7, 2020

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.”

The Emirati minister of state for foreign trade stated:

Throughout the last 18 months, we have proven what can be achieved when disputes and differences are set aside. We are now ready to leverage these foundations and promote a new era of opportunities and entrepreneurship for our citizens, to establish a relationship of mutual respect, tolerance, open and honest discourse, and unity of thought and action. We have no doubt that this agreement will pave the way for a new era of a prosperous economy in our region.

Earlier this year, Israel’s cabinet greenlighted an R&D fund for joint Israel-UAE ventures in the tech space.

Israel has free trade agreements with the U.S., the European Union, Canada, and Mexico.