Israel-UAE free trade agreement set to take effect

(JNS) Israeli Foreign Minister Eli Cohen and United Arab Emirates Ambassador to Israel Mohamed Al Khaja signed a customs deal on Sunday that paves the way for the countries’ free trade agreement to enter into force.

“The taking effect of the free trade agreement is important news for the Israeli economy, for the strengthening of ties with the UAE and is further testament to the importance of the Abraham Accords,” said Cohen in reference to the Trump administration-brokered agreements that normalized Jerusalem’s relations with four Arab nations.

The May 2022 free trade agreement was the fastest-ever negotiated in Israel’s history, signed in Dubai some 18 months after the countries established diplomatic relations. The agreement removes tariffs on 96% of goods traded, ranging from food to jewelry to medical equipment. Other benefits include protection of intellectual property and, new to free-trade agreements, a promise to find ways for small and medium-sized businesses to profit from “commercial opportunities granted by the agreement.”

Last year, bilateral trade reached more than $2.5 billion (not including software and services), making the UAE Israel’s 16th largest trading partner.