Israel says joint manufacturing with Egypt on track

March 5, 2011 16:52

Egyptian factories that use products from Israel under a US-sponsored trade deal have resumed work, overcoming disruptions caused by the power struggle in Cairo, an Israeli official said on Saturday.

Officials in Jerusalem worried that the fall of Egyptian President Hosni Mubarak could erode the countries' landmark 1979 peace accord, which Washington shored up by waiving American import duties on textiles manufactured in Egypt with help from Israel.

Gabby Bar, head of the Middle East department at the Industry and Trade Ministry, said supplies to Egyptian factories had been halted during the February upheaval in Cairo, which saw widespread curfews, worker strikes, and bank and port closures.

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