After five months of negotiations, Israel and the United Arab Emirates finalized a free trade deal which is regarded as a “significant and historic milestone.” As per a statement released by the ministry, customs duties will be abolished on 96 % of products such as agriculture, food, cosmetics, medicine, and medical equipment. Many products will get immediate custom duty exemption while others gradually. Israel’s Economic Ministry said that the free trade agreement to be signed between both countries on Tuesday would help boost trade and foster economic relations between both countries.
Free trade talks started in November 2021. In December, Israeli Prime Minister Naftali Bennett visited Abu Dhabi and discussed the free trade talks with the then Crown Prince Sheikh Mohammed bin Zayed Al Nahyan (MBZ), the current president of UAE. The two leaders decided to be quick with further discussions. The trade deal makes it Israel’s first with an Arab country.
Israeli PM Bennett said in a statement that the good relations that have already been created between UAE and Israel are being strengthened in the form of a free trade deal, which will significantly improve the economic cooperation for the good of the citizens of both countries.