Institutional Arrangements between Egypt and Israel

Abstract

This chapter deals with the institutional framework within which economic relations between Egypt and Israel may develop. Here distinction is made between the short and long run. There is little doubt that at least in the near future these relations are going to be dominated by political considerations. Both parties are, of course, fully aware of the fact that peace between them is only the first, albeit supremely important, step towards a comprehensive settlement of the Arab-Israeli conflict. For the time being, therefore, as long as the prospects of a comprehensive settlement remain unclear, they are likely to refrain from taking steps implying long-term commitments, especially if these might create one-way dependence. They will also seek to preserve their existing relations with the rest of the world. This last point is especially relevant for Egypt, anxious as she is not to disrupt further her political and economic relations with the other Arab countries.