A comprehensive free trade agreement has been signed by UAE and Israel to promote economic trading between the two nations. The agreement is aimed at encouraging more non-oil trade between UAE and Israel as it produced over $2 billion this year.
This new agreement would take off tariffs on almost all goods that are traded between them. Last year also the non-oil trade produced a high amount of profit. In 2020, both Bahrain and UAE signed the “Abraham Accords” with Israel with America acting as a mediator for the normalizing agreements.
This Agreement Will reduce tariffs on 96% of goods traded between the nations
The middle-east nations have their concerns about Iran and its allies. Israel also shared the same concern and this led to the signing of the “Abraham Accords”. The accord was signed as part of negotiations done by the Trump administration to establish a cooperative and productive relationship between two historically opposing cultures.
This has led to mixed responses from different quarters of the world as the tension between Israel and Palestine exists as a major political and human rights issue.
According to the accords, two-way trade was established between UAE and Israel. As part of the trade efforts around nine hundred million dollars worth of trade happened in 2021 and UAE has become the first gulf nation to have an economic relationship with Israel.
Among the Arab nations, UAE stands third in cooperating with Israel with Egypt and Jordan being the other two countries before UAE. The accord has created a furor among the Palestinian supporting groups as they have not made a proclamation to not support any sort of normalizing agreement that happens between any Arab nations and Israel.
The US promotes the Abraham Accord as a first step towards solving problems with two sides as this accord would enable healthy economic and cultural transactions between communities and nations that have been at loggerheads for a long time.
The US proclaims that this will also help establish peace, security, and prosperity among the signed nations and also in the world. Economic agreements are one of the main aspects of the accord as this will lead to mutual benefits for the countries involved at a post-covid phase when world economies are trying to recover from the covid-19 economic blockade.
Mutual cooperation and development will happen in areas relating to Health, Tourism, Finance, Energy, Agriculture, Water, and a wide spectrum of other economic and social branches.
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The Accord also stated that any sort of dispute that may arise with regard to the implementation of this accord shall be solved through negotiations. Morocco has also joined the Abraham accords becoming the fifth Arab country to partner with Israel.
The critics of the Abraham Accords said that the process of normalizing the relationship between Israel and Arab nations was never the intention of the Abraham Accord as tensions are escalating in Palestine with Israel increasing their aggression towards the Arab nation.
They claim that the Accords was a merely brokered deal between Israel and America that opened up a whole new economic prospect for Israel from Arab nations like UAE who had boycotted Israel for the past decade. This sort of falsely brokered deal could end up creating more hostilities in the relationship between the middle-east and west as Pro-Palestinian groups have expressed huge discontent over Arab nations signing the accord.
Even after two years have passed since the signing of the accord, Israel continues its border expansion policies through violence and military might against the people of Palestine. This has led to the question of the purpose of the Abraham Accords as a harbinger of peace or if was it just a business deal signed for economic benefits alone.