Sunday Israel and signedThe UAEThe two countries signed a customs agreement in 2020, which is the last stage before the free trade agreement, the first of its kind between the two countries, enters into force.
“The customs agreement signed today will lead to the entry into force of the free trade agreement between Israel and the UAE,” Israeli Prime Minister Benjamin Netanyahu said, referring to the agreement concluded in May 2022, describing the agreement as “historic.”
Netanyahu, who attended the signing ceremony of the agreement between Israeli Foreign Minister Eli Cohen and the Emirati ambassador to Israel, Mohammed Al Khaja, indicated that the free trade agreement “will reduce customs duties, cost of living, and stimulate business between Israel and the UAE.”
In a statement to Agence France-Presse, Lior Hayat, a spokesman for the Israeli Ministry of Foreign Affairs, indicated that the customs agreement is the “last stage” before the free trade agreement “enters into force on April 1.”
And the Israeli Foreign Ministry statement stated: “As soon as the free trade agreement enters into force, about 96 percent of the goods will have their customs duties reduced or canceled,” noting that the step will allow “Israeli companies to participate in tenders launched by the UAE government.”
For its part, the UAE embassy in Israel announced the signing of a customs cooperation agreement that will activate the free trade agreement between the two countries. She indicated that the Gulf state expects “through this agreement to double intra-trade, improve the standard of living, and reduce commodity prices.”
In the year 2022, the value of commercial exchanges between the Hebrew state and the UAE exceeded $2.5 billion (about 2.3 billion euros), excluding information products and services, which places the Gulf state 16th in the list of Israel’s largest trading partners, according to the Israeli Foreign Ministry.
Israel and the UAE reached an agreement to normalize relations in 2020, as part of a series of agreements concluded with US mediation, called the “Abraham Accords”.
