Israel and Egypt sign deal to boost textile exports

A deal is signed between Egypt and Israel to lower the threshold of Israeli components required in Egyptian products for them to be exported to the United States duty-free. The deal is aimed at boosting exports from so-called Qualifying Industrial Zones (QIZ).

Egyptian Trade Minister Rashid Mohammed Rashid signed the deal during a visit to Cairo by his Israeli counterpart Eli Yishai. The two sides also signed and sent a letter to US authorities requesting the designation of eight new QIZ areas in Upper Egypt, the south of the country.

Goods from a QIZ, several of which exist in Egypt and Jordan since the US Congress authorized them in 1996, can enter the United States duty-free provided they contain Israeli components.

Egypt and Jordan are the only two Arab states to have signed a peace deal with Israel. Egyptian textile exports from QIZs were worth US $306 million from January to May of this year, up from US $223 million during the same period in 2006.