Israel's Trade Alliances Strategy: Enjoying the Best of All Worlds

Abstract

This article revisits Israel's trade and political alliance with the European Union – its major trade partner. The article examines the position calling to water down Israel-EU trade relations, considering EU's insistence on linking economic benefits with political advancement in the region, insights gained by the COVID-19 pandemic and substantial recent regional developments: Israel's trade diversification policy, the conclusion of Abraham Accords and the discovery of gas in the Eastern Mediterranean basin. Concluding that such a strategy may not serve the parties' interests best, the article explores ways to leverage these developments to further enhance EU-Israel partnership.