Israel and UAE Free Trade Deal :Abraham Accord 

News Highlights 

Israel signed a free trade deal with the United Arab Emirates and its first with an Arab country, building on their U.S.­ brokered normalization of diplomatic relations in 2020 Abraham Accord.

Key Focus Areas

• As the deal was signed  scraps customs duties on 96% of all products traded
• The deal will benefit from faster access to markets and lower tariffs as our nations work together to increase trade, create jobs, promote new skills and deepen cooperation
• The 2020 deal was part of the U.S.­ brokered Abraham Accords that also saw Israel establish diplomatic ties with Bahrain and Morocco.

Abraham Accord 

• Takeaways of  Agreement
  • The UAE and Bahrain will establish positive steps with Israel like
    • Embassies and ambassadorial exchanges.
    • Cooperating with Israel in a variety of fields, including tourism, trade, healthcare, and security.
  • Related Positive Development
    • The Abraham Accords also allow Muslims from all over the world to visit Israel’s ancient monuments and quietly pray at Al-Aqsa Mosque in Jerusalem, Islam’s third holiest site.

Why Are Israel and Arab Countries Moving Closer by Signing Abraham Accord ?

• The meeting of Israel, the United Arab Emirates, and Bahrain demonstrates their common worry about Iran’s growing regional influence and ballistic missile development.

Why is the Abraham Accord Significant in the Region?

• Palestine Question – The accord demonstrates how Arab nations are rapidly distancing themselves from the Palestinian issue.
• Peace in the Region – Israel, the United Arab Emirates, and Bahrain will establish full diplomatic relations, which will have a good impact on the entire region.
•  Good face for UAE – When the UAE signed the agreement the country got into goodwill of the USA in between the countries face allegations they were involved in Yemen Civil War.
• Other Positive Side – The same year the accords were signed, Sudan and Morocco normalized relations with Israel. More countries are anticipated to follow suit, although given the volatile nature of Middle Eastern politics, this is unlikely in the near future.

Interest of India in the Region

• Because of its proximity to the continents and countries of South Asia, China, Central Asia, Europe, and Africa, West Asia is strategically important in international affairs.
• The establishment of complete diplomatic relations between Israel, the United Arab Emirates, and Bahrain will have a positive impact on the entire region.
• The region is strategically vital due to its large energy resources and trade route linkages to various parts of the world.
• Indian expats have made up a significant percentage of the labour market in the region.

India’s Possibilities

• By implementing India’s goodwill in the region India can make influence in the west Asian region that can help India to check many security threats. 
• India can ensure energy security by maintaining good relations with Arab nations and technological support from Israel.
• India can ensure its economic presence in the region.
• India can enhance military cooperation with both parties at same time

Way Forward

• Abraham Accord till now played a vital role to ensure regional stability upto a level and minimize Arab – Israel conflict. In Indian viewpoint it helps to maintain India a cordial relation with both parties.

Pic Courtesy : Deccan Herald

Content Source : The Hindu