The European Union and Israel have had a long-standing trade relationship dating back to 1975. Recently, the two parties announced the conclusion of negotiations on a new Free Trade Agreement (FTA), which is expected to significantly deepen ties between them.

The new FTA aims to remove trade barriers in a wide range of sectors and promote trade in goods and services between the EU and Israel. It covers various products, including agricultural goods, processed foods, textiles, and machinery. Additionally, the agreement also includes provisions on intellectual property rights, public procurement, and sustainable development.

The FTA is expected to promote economic growth and job creation in both the EU and Israel. According to the European Commission, the agreement will eliminate customs duties on 70% of EU exports to Israel and 80% of Israeli exports to the EU. This will lead to an increase in trade between the two sides and boost the economy.

The agreement will also provide certainty and predictability for businesses as it offers a level playing field in terms of standards, regulations, and investment protection. This will lead to increased investment, particularly in the service sector, which will benefit both the EU and Israel.

The FTA is also significant in terms of political and strategic relations between the EU and Israel. It highlights the EU`s commitment to Israel`s security and stability in the region. The agreement will also enhance the EU`s role in the Middle East peace process and support the two-state solution.

The FTA negotiations were concluded in December 2020 and are expected to enter into force in 2021. However, it is important to note that the agreement is still subject to the approval of the European Parliament and the Council.

In conclusion, the new EU-Israel Free Trade Agreement is a significant development in the trade relationship between the two sides. It will promote economic growth, job creation, and investment while providing certainty and predictability for businesses. Additionally, it is a clear indication of the EU`s commitment to Israel`s security and stability in the region, reinforcing the importance of political and strategic relations between the two parties.