Trading Peace in Egypt and Israel

By Oren Kessler

This year marks the tenth anniversary of an Egyptian-Israeli economic partnership that has quietly pumped billions into Cairo’s vulnerable economy. The free-trade framework known as Qualifying Industrial Zones, or QIZs, is one of the few points of economic normalization to have grown out of Israel’s 1979 peace agreement with Egypt and subsequent deal with Jordan. Given the flagging Arab economies and regional instability, the success of QIZs has implications far beyond the bottom line.

Essentially, QIZs are industrial parks through which participating countries—specifically Egypt and Jordan—can export goods under the flag of the U.S.-Israeli free-trade agreement. Egypt is now home to 15 QIZs and Jordan to 13, which together account for some $1 billion in exports a year. QIZs differ from other free-trade zones in that they are not the purview of a single country. Rather, they are jointly operated by Israel and either Egypt or Jordan, with oversight from Washington. Moreover, their products all have a single destination: the United States.

Source- Foreign Affairs

 

 

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