Israel, UAE sign historic free trade deal

Israel signed a free trade agreement with the United Arab Emirates on Tuesday, its first with an Arab state and one which eliminates most tariffs and aims to lift their annual bilateral trade to more than $10 billion. It was signed in Dubai by Minister of Economy and Industry Orna Barbivai and her counterpart, UAE Minister of Economy Abdulla bin Touq Al-Marri, after months of negotiations. According to Emirati Trade Minister Thani al Zeyoudi, the free trade deal will push the value of non-oil bilateral trade between Israel and the UAE beyond $10 billion (€9.3 billion) within five years.

Today we signed a Comprehensive Economic Partnership Agreement with #Israel that builds on the strong foundations laid by the Abraham Accords. It will push the value of our non-oil bilateral trade beyond $10 billion within five years. pic.twitter.com/j5g1Q30eI4

— د. ثاني الزيودي (@ThaniAlZeyoudi) May 31, 2022

Israel has described as "historic" the deal abolishing customs duties on "96% of the products" exchanged between the two sides.Two-way trade last year totalled some $900 million (€837 million), according to Israeli figures.Tariffs will be reduced on goods including food, medicine, diamonds, jewelry, fertilisers, and other chemicals. Most duties are to be eliminated immediately, while others will be removed over 3-5 years. Some products will still be subject to customs tariffs but at a lower rate.For oil-rich UAE, the deal with Israel is its second bilateral free trade agreement after signing a similar accord with India in February.