On Sunday, Israel and the UAE signed a customs agreement, which is the final stage before the implementation of a free trade agreement between the two countries. This agreement, described by Israeli Prime Minister Benjamin Netanyahu as “historic,” was concluded in May 2022. Netanyahu stated that the free trade agreement “will reduce customs duties, cost of living, and stimulate business between Israel and the UAE.” According to a spokesman for the Israeli Ministry of Foreign Affairs, the free trade agreement is set to enter into force on April 1. Once the agreement takes effect, around 96% of goods will have their customs duties reduced or canceled, allowing Israeli companies to participate in tenders launched by the UAE government. Commercial exchanges between the two countries in 2022 exceeded $2.5 billion (regarding 2.3 billion euros), excluding information products and services. The UAE ranks 16th on Israel’s list of largest trading partners. The two countries reached an agreement to normalize relations in 2020 as part of the “Abraham Accords,” a series of agreements concluded with US mediation.
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, regarding 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 (regarding 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”.
France 24/AFP
The signing of the customs agreement between Israel and the UAE represents a significant step towards the implementation of the first free trade agreement between the two countries. The reduction or cancellation of customs duties will not only stimulate business and promote competition but will also improve the standard of living and reduce commodity prices. This historic agreement, concluded under the Abraham Accords, has the potential to double intra-trade and further strengthen the relationship between Israel and the UAE. The world watches in anticipation as to what further developments will arise from this historic agreement.
