Israel Export Institute: War will not influence exports to Arab countries

Mr. Yehiel Asia, Director General of the Israeli Export and International Cooperation Institute, said last week that despite the war in Lebanon, no change is expected in the level of exports to the Arab countries in 2006
 
In a detailed analysis about Israel's bilateral trade with the Arab world, Asia noted that Israel's exports to Jordan & Egypt, which rest mainly on the "Qualifying Industrial Zones" (QIZ) agreements, constitute the main components of Israel's exports to Arab countries.
 
Products produced in a QIZ can enter the United States duty free and quota free, provided that they meet certain minimal standards. In many cases this means that products produced in these zones can enter the U.S. at lower, more competitive prices than similar products from other countries. The granting of duty and quota free access through the QIZ is a unilateral act of the United States and does not require reciprocity or trade concessions from Jordan and or Egypt.
 
The QIZ agreements allow tariff-free exports from Egypt to the US on the condition that 11.7% of the raw materials of the end product are imported to Egypt from Israel.
 
Asia also noted that in the first half of 2006, Israel experienced a 28% increase in exports to Arab countries, in comparison to parallel period last year. Such an increase amounts to roughly US$ 138 millions. Of this figure 92% was to Jordan and Egypt.