The increase in exports to Egypt and Jordan were responsible for most of the export growth this year. Israel has qualified industrial zone (QIZ) treaties with both countries
The Israel Export and International Cooperation Institute reported last week that Israel's industrial exports to Arab countries rose by 19% in the nine months period January-September 2006 to $206 million, compared to 26% increase in the corresponding period of 2005.
The CBS noted that the increase in exports to Egypt & Jordan were responsible for most of the export growth this year.
Industrial exports to Egypt consisted mainly of textiles, chemicals and refined oil products, rose 36% in January-September, compared with the parallel period, to $92 million. The Export Institute reported that in 2005, the number of Israeli exporters operating in Egypt grew by 100%, and currently stands at 257.
Industrial exports to Jordan, consisted mainly of wood and furniture, paper and printing and textiles inputs, rose 12.5% to $96 million. More than 1,300 Israeli exporters operate in Jordan nowadays, a 25% decrease in comparison to 2004.
Israel has qualified industrial zone (QIZ) treaties with both countries, under which jointly manufactured products are exported duty-free to the US. The QIZ is a tool to promote peace and stimulate the Jordanian & Egyptian economies.
The Qualified Industrial Zone is an area that has been specified as such by the US Government, and designated by local authorities as an enclave where merchandise may enter the US Market without payment of duty or excise taxes, and without the requirement of any reciprocal benefit.
The QIZ represents an unprecedented opportunity to gain duty-free and quota free access to the US Market, the world’s largest and most affluent consumer market.
Industrial exports to other Arab states are far more limited. Exports to Morocco fell by 16% to $8.4 million, and exports to Tunisia fell by 10% to $1.5 million.
