Israel signs free trade agreement with UAE_ first with an Arab country

Israel has signed a free trade agreement with the United Arab Emirates (UAE)_ its first with an Arab nation and one which eliminates most tariffs and aims to lift their annual bilateral trade to more than 10 billion US Dollar.

After months of negotiations_ the deal was signed on Tuesday in Dubai by UAE minister of economy Abdulla bin Touq Al Marri and his counterpart Orna Barbivai.

Tariffs will be removed or reduced on 96% of goods traded between the two countries. The UAE predicted the Comprehensive Economic Partnership Agreement would boost annual bilateral trade to more than $10bn within five years.

Emirati-Israeli bilateral trade stood at $1.2bn in 2021_ Israeli data showed.

Tariffs will be reduced on imports of food_ medicine_ diamonds_ jewellery_ fertilizers and other chemical items.

Most duties are to be eliminated immediately_ while others will be removed within 5 years. Some products will still be subject to tariffs but the rate will be significantly lower.

The deal had written a new chapter in the history of the Middle East_ Emirati trade minister Thani Al Zeyoudi said.

The expected strengthening in trade_ removal of barriers and promotion of new business opportunities and partnerships would form a solid foundation for the joint path shared by Israel and the UAE_ Orna Barbivai said in a statement.