Revolution Hasen't Destroyed Egypt-Israel Economic Ties Yet


Egyptian factories using Israeli goods to save on US tariffs back at work, says Israeli Official.


By: DANIELLE KUBES  
Published: March 6th 2011
in Economics » Israel

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Don’t worry -the popular uprising in Egypt hasn’t destroyed economic ties between Israel and Egypt. Some Egyptian Factories that use Israeli goods are back hard at work yesterday after a rocky February with strikes, curfews, bank closures and general instability.

 

The U.S doesn’t charge duty on textiles made in certain Egyptian factories that use Israeli products in order to support cooperation between the neighbouring countries under a 2005 deal known as Qualifying Industrial Zones, reports Reuters.

 

"Indeed, we are seeing today a desire by Egyptian firms which are very interested in continuing to operate in this manner, as it allows them to stand competitively in the American market, because they are selling with a full customs waiver," Gabby Bar, a top official at Israel's Industry and Trade Ministry, is quoted saying to Israel Radio by Haaretz.

 

Since former Prime Minister Hosni Mubarak fell last month, Israel has worried about the safety of its 1979 peace deal, especially since anti-Israel sentiment is strong in Egypt. For now at least, it seems like its business as usual.



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