UAE, Israel ink customs agreement to boost trade ties, activate CEPA

The UAE and Israel have signed a customs agreement in Jerusalem. The signing of the customs agreement will allow the UAE-Israel Comprehensive Economic Partnership Agreement (CEPA), signed in May 2022, to enter into force, reported the state news agency, WAM.

Mohamed Al Khaja, Ambassador of the United Arab Emirates to the State of Israel, and Eli Cohen, Minister of Foreign Affairs of Israel, signed the agreement in the presence of Israeli Prime Minister Benjamin Netanyahu at the Prime Minister’s office in Jerusalem.

Read: UAE, Israel sign comprehensive economic partnership agreement

Ambassador Al Khaja said, “The Comprehensive Economic Partnership Agreement between the UAE and Israel will serve as a major engine to strengthen economic and commercial ties between the UAE and Israel. We expect the agreement to produce significant mutual economic benefits.”

The customs agreement aims to enable mutual assistance in ensuring the proper application of customs laws, accurately assessing customs and other tax fees on exports and imports, adjusting customs data, and preventing and investigating customs violations, reported WAM.

UAE and Israel sign customs agreement to activate CEPA and strengthen economic cooperation.#WamNews https://t.co/V6Nkn2WwY2

— WAM English (@WAMNEWS_ENG) March 27, 2023

Benefits of the UAE-Israel CEPA

In 2022, the non-oil bilateral trade volume between the UAE and Israel reached over $2.5bn.

With the CEPA entering into force, the UAE and Israel expect the trade volume between them to increase significantly.

The UAE-Israel CEPA, the second bilateral trade agreement signed by the UAE, offers economic benefits to both countries by lowering or eliminating tariffs on more than 96 per cent of tariff lines and 99 per cent value of trade.

It also enhances market access for exporters, attracting new investment, and creating opportunities in key industries, including energy, environment, and digital trade.

Also read: UAE seeks $1 trillion in business with Israel over next decade

Related read: UAE announces $10bn investment fund with Israel

In addition to Israel, the UAE signed CEPAs with other countries such as India and Indonesia in 2022, with the aim to help grow the national economy by 2.6 per cent by 2030.

Read: UAE’s CEPA pacts to grow economy by 2.6% by 2030 – minister

In July last year, the UAE and Kenya started negotiations on a CEPA between the two countries.

Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Betty Maina, Cabinet Secretary, Ministry of Industrialisation, Trade and Enterprise Development of Kenya, signed a joint statement in Nairobi announcing the CEPA.

In March this year, Georgia and the UAE signed a comprehensive economic partnership agreement (CEPA) to build stronger and more integrated economic relations between the two nations.

Read: UAE, Georgia sign comprehensive economic partnership agreement

Also in March, UAE President Sheikh Mohamed bin Zayed Al Nahyan and Recep Tayyip Erdogan, President of the Republic of Türkiye, witnessed the signing of a CEPA between the UAE and Türkiye.

The CEPA, signed during a virtual summit, reflected the significant development witnessed in bilateral relations in recent years, as the total non-oil trade between the UAE and Türkiye reached $19bn in 2022, an increase of 40 per cent compared to 2021 and 112 per cent compared to 2020.