Israel signs historic trade deal with Gulf nation UAE

Trade deal free Israel – UAE was signed to reduce or eliminate tariffs and aims to increase the annual bilateral trade value to more than 10 billion USD over time.

The treaty was signed in Dubai between Israel’s Minister of Economy and Industry Orna Barbivai and UAE Economy Minister Abdulla bin Touq Al Marri after months of negotiations.

Tariffs will be lifted on 96% of goods, of which the UAE predicts that the Regional Comprehensive Economic Partnership will boost bilateral trade to more than $10 billion a year over the next five years.

UAE Trade Minister Thani Al Zeyoudi said the trade deal wrote “a new chapter in the history of the Middle East.”

“Our agreement will spur growth, create jobs and lead to a new era of peace, stability and prosperity in the region,” he wrote on Twitter.

The agreement was signed amid escalating violence between Israel and Palestine.

Flags of UAE and Israel, September 2020, when the two countries signed an agreement to normalize relations. (Photo: Reuters)

The UAE-Israel Business Council President Dorian Barak confirmed that the trade agreement, which defines tax rates, imports and intellectual property, will encourage more Israeli companies to set up offices in the UAE, especially in the UAE. in Dubai.

The council predicts there will be nearly 1,000 Israeli companies working in or through the UAE by the end of the year to do business with South Asia, the Far East and the Middle East.

Israel-UAE trade will reach $1.2 billion by 2021, according to official Israeli data.

Before signing, Israel’s Ministry of Economy said that the agreement would eliminate tariffs on food, agricultural products, cosmetics, medical equipment and drugs.

For the oil-rich UAE, the deal with Israel is the second bilateral free trade deal after it signed a similar deal with India in February. The UAE is currently in bilateral trade talks, but with several other countries, including Indonesia and South Korea.

Israel and the UAE established diplomatic relations in September 2020 in an agreement brokered by the US.

Bahrain and Morocco also established official diplomatic relations with Israel in the same year.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!