Jordan and Israel announced Friday that they will jointly participate in a European-Mediterranean trade system that will allow the both countries to boost duty-free exports to Europe.

Israeli Deputy Prime Minister Ehud Olmert told reporters that joint participation would expand the two countries’ trade links with Europe.

The announcement was made on the sidelines of the World Economic Forum meeting in the Jordanian Dead Sea resort.
Asked if Israel would work for a similar agreement with the Palestinians, Olmert said: "This is a very crucial turning point that the (Gaza) disengagement has to lead to a new beginning between us and the Palestinians.

Jordan and Israel share five Industrial Zones, which produce goods that target many Western and Arab markets. The products are also exempt from U.S. tariffs and quotas.