Brazil’s Foreign Ministry said the free trade agreement was “a concrete contribution to an economically viable Palestinian state, which can live peacefully and harmoniously with its neighbours”.

Palestine’s ambassador in Brasilia, Ibrahim Al Zeben, told Reuters that Brazil’s decision was “courageous, supportive and timely” and an “effective way to support peace in Palestine”.

Israel has blocked exports from the Gaza Strip since early September last year, while the Palestinian economy in the occupied West Bank has also suffered under intense Israeli restrictions.