ABSTRACT
Negotiations on the establishment of trade, economic and financial relations between the two countries were also initiated before the opening of the embassies. Israel attached great importance to these fields — more out of political than economic considerations. It was clear that, for objective: reasons, Egypt would never become a major commercial partner for Israel. Israeli experts in foreign trade estimated, that within three to five years, the volume of trade with Egypt (not including oil) would reach annually around $150-200 million, representing less than one per cent of Israel's global trade (today, less than 0.5 per cent). They believed that, with time, there might arise additional opportunities for joint ventures with the Egyptian public and private sectors. They also hoped that Egypt would become a transit point for indirect trade with Arab and Muslim countries which did not maintain diplomatic relations with Israel and implemented the Arab commercial boy cot i.
