The UAE-Israel Comprehensive Economic Partnership Agreement, which promises to push bilateral trade between the UAE and Israel beyond $10 billion within five years, will come into effect on April 1, 2023.
This means that tariffs will be removed or reduced on more than 96% of product lines, which covers 99% of the current value of traded goods between the UAE and Israel.
The UAE-Israel CEPA, which was signed on May 31, 2022, is now the second of the UAE’s new foreign-trade deals to be ratified following the successful roll out of the UAE-India CEPA in May 2022.
In addition to the new tariff structures, the agreement with Israel removes unnecessary barriers to trade, improves market access for services suppliers, opens opportunities in government procurement, provides a platform for SMEs to expand internationally, establishes parameters for digital trade, protects intellectual property, and creates transparent trade remedy mechanisms.
In 2022, bilateral non-oil trade reached $2.49 billion, a 90% increase on 2021’s total, with re-exports from Israel growing 71.2% and non-oil exports to Israel climbing 48.6%.-- TradeArabia News Service