Israel’s exports to Egypt have fallen 18 per cent in the first seven
months of the year, totalling US$78 million, the Israel Export and
International Cooperation Institute said on Monday…Imports from Egypt for the seven-month period reported stood at $137 million, a drop-off of 16 per cent”
As a result, the Israeli government has begun allowing state insurance
agency Ashra to issue policies to cover short-term trade with Egypt
against political and business risk, according to the Israeli business
newspaper The Marker .
The move came after the private insurance companies began restricting their policies .
According to an Egyptian newspaper report, the closure of the Ouja
border crossing and trading point between Egypt and Israel in Central
Sinai has led to the halt of Israeli imports to Egyptian factories
operating within the Qualified Industrial Zones (QIZ) Protocol signed
between the two countries .
QIZs are designated geographic areas within Egypt, that enjoy a duty
free status with the United States. Companies located within such zones
are granted duty free access to the US markets, provided that they
satisfy the agreed upon Israeli component, as per the pre-defined rules
of origin .
There are currently 15 such industrial zones, with nearly 700 qualified
companies, reportedly amounting to more than $1 billion in annual
revenues. The majority are textile and fabric producers .