CAIRO, Dec 14: In a partnership hailed as a major boost to often chilly ties, Egypt and Israel on Tuesday signed a first joint trade accord with the United States since their historic peace treaty 25 years ago.

The deal is an "important step towards consolidating our economic relations," said Egyptian Industry and Foreign Trade Minister Mohammed Rashid. It would "contribute positively to regional prosperity and in achieving a just and comprehensive peace in the Middle East", he added.

Under the deal goods will be exported to the United States duty free from joint industrial zones in Egypt. Rashid signed the accord with Israeli Deputy Prime Minister Ehud Olmert in the presence of Egyptian Prime Minister Ahmed Nazif and US Trade Representative Robert Zoellick. -AFP