Free trade agreements of Israel

The economy of Israel is one of the growing and developed economies in the world. Israel is a member of the OECD, and member of the World Trade Organization. The place which Israel is taken in the global market reflect Israel as a Middle and Regional power, which improves the Foreign relations of Israel. The first Free trade agreement was signed in 1985 with the USA. Israel has signed 14 Free trade agreements with 46 countries, many of these countries are part of economic blocks, as such, the European Union, European Free Trade Association and Mercosur.

Free trade agreements of Israel
  Israel
  Agreement in force
  Agreement signed but waiting for approval
  Agreement in negotiations
  Agreement in discussions or proposed
  QIZ Agreement only
  Agreement suspended
  Custom union with the Palestinian Authority (Area A and B)

Operating agreements

List of free trade agreements between Israel and other countries or organizations, from the first to the last.

United States of America

Israel and the USA signed a free trade agreement which was Israel's first and the first by the United States with a country outside of North America. The FTA came into force on September the first, 1985.[1] The goods are organized in groups: A. Goods without any restrictions. B. Goods with limited restrictions on amount without duty fees. C. Goods with duty fees which would reduce by the years.

The goods need to be a product of Israel or the US and if not, the goods must have had a significant portion produced in Israel or USA.

Israel and the US signed a second FTA in 2004, which extended the trade on agriculture,[2][3][4][5][6][7] as well as on telecommunication equipment.[8]

In 2017 Israel and the US signed an FTA on Rules of Origin.[9]

As well as Israeli-American bilateral agreements, in 2004 USA, Israel and Egypt signed the QIZ (Qualified Industrial Zone) agreement.[10][11][12] The agreement is to promote co-production between Israel and Egypt.

EFTA

Israel and ETFA - European Free Trade Association, which includes Switzerland, Norway, Iceland and Liechtenstein, signed an FTA in 1992 which came into force in 1993.[13] The FTA includes trade of goods, rules of origin, IPR and more. In 2018 the FTA was updated to extend to agriculture.[14][15][16][17][18][19]

Jordan

The FTA between Israel and Jordan was signed in 1995, a year after the peace agreement in 1994. The agreement of 1995 includes[20] rules of origin and goods that are 100%, 50% or 30% duty-free. In 2004 the FTA was updated.[21]

European Union

The first agreement between Israel and the EU was signed on the 20 of November 1995 and came into force on the first of June 2000; the FTA covers all 27 EU member states.[22] The FTA includes agreements on rules of origin, duties, agriculture, service and industrial trades and co-operations, tourism, transport, etc. The FTA was updated in 2010 on the matter of agriculture.[23] In 2013 Israel and the EU signed the ACAA - Agreement on Conformity Assessment and Acceptance of Industrial.[24] The ACAA gives GMP (Good Manufacturing Practice) exemption to the Israeli medical industry and easing the export of medical goods from Israel to the European Union.

Turkey

Israel and Turkey signed an FTA on the March 14, 1996, and the FTA came into force on May the first, 1997. The FTA covers topics from duties on agriculture, industry and services to right and origin.[25] The FTA was updated in 2006 and 2007.[26][27]

Canada

Israel and Canada signed their first FTA on 31.07.1996, and the FTA came into force in 01.01.1997, listing a number of goods without duties or with low fees of duty.[28] Israel and Canada also signed an agreement on Telecommunication equipment.[29] The first FTA was updated in 2019,[30] eliminating tariffs on goods from Israel and Canada.[31][32]

Mexico

Israel and Mexico signed a free trade agreement in 2000,[33] and updated the FTA in 2008 on the matter of technology.[34]

Mercosur

Israel and Mercosur signed a free trade agreement on 8 December 2007 and the free trade agreement came into force on the first of June 2010.[35] The free trade agreement covers the Mercosur member states, Argentina, Brazil, Paraguay and Uruguay. Venezuela is also member state but placed under suspension from Mercosur due to human rights violation, and Venezuela suspended the relationship with Israel in 2009. Mercosur extended the free trade agreement with Israel in 2012.[36]

Colombia

The free trade agreement between Israel and Colombia was signed in 2013 and came into force in 2020.[37] The FTA includes exemption or reduction of duties on different types of goods as mendicants, textile, gadgets and other industrial goods, which enjoys 5% - 35% duties. The agreement includes other sectors such as agriculture, for example.[38][39][40][41]

Panama

The FTA between Israel and Panama was signed in 2018 and came into force in 2020.[42]

Ukraine

Israel and Ukraine signed their FTA on the 21.01.2019; it came into force on the 01.01.2021.[43] Thousands of goods are exempted from duties, from industry, agriculture, raw materials and more.[44][45]

United Kingdom

Due to Brexit, the United Kingdom is not included in the FTA between the EU and Israel. Israel and the UK signed their FTA in 2019 before the withdrawal of the UK from the EU came into effect. The FTA came into force on the 01.01.2021 and replaced the Israeli-EU FTA.[46]

Signed agreements

Agreements after signature, but didn't vote yet.

South Korea

Israel and the Republic of Korea signed the FTA on 12 May 2021.[47]

United Arab Emirates

As a result of the Abraham Accords, Israel and the UAE established a warm relationship, and 1 April 2022 Israel and the UAE signed the Free trade agreement.[48]

FTA under negotiation process

Proposed FTA which not yet achieved signature.

Australia

FTA between Australia and Israel is proposed.[49]

China

Israel and China are negotiating since 2016, and the FTA is in high possibility to be signed in the future.[50][51]

Eurasian Economic Union

The Eurasian Economic Union leads by Russia and includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan was negotiating with Israel since 2018, but the Russian invasion to Ukraine could affect on the negotiation processes.[52]

Guatemala

Israel and Guatemala negotiation of FTA is since 2019.[53]

India

Israel and India are negotiating FTA since 2010, and the FTA is in high possibility to be signed in the future.[54][55]

Japan

FTA between Japan and Israel is proposed.[56][57]

Vietnam

Israel and Vietnam negotiation of FTA is since 2016.[58]

See also

References

  1. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_fta-usa-isr-en.pdf
  2. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_usa-fta-agriculture-letters.pdf
  3. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_attachment-usa-isr-agri-2004.pdf
  4. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_usa-fta-agri-annexa.pdf
  5. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_usa-fta-agri-annexb.pdf
  6. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_usa-fta-agri-annexc.pdf
  7. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_usa-fta-agri-annexd.pdf
  8. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_Mutual-Recognition-Agreement-usa-isr-en.pdf
  9. https://www.gov.il/BlobFolder/policy/fta-isr-usa/he/sahar-hutz_agreements_fta-isr-usa-joint-committee-decision.pdf
  10. https://www.gov.il/BlobFolder/policy/qiz-egypt-usa-isr/he/sahar-hutz_agreements_egypt-usa-qiz-agreement-en.pdf
  11. https://www.gov.il/BlobFolder/policy/qiz-egypt-usa-isr/he/sahar-hutz_agreements_Egypt-Annex-A-QIZ.pdf
  12. https://www.gov.il/BlobFolder/policy/qiz-egypt-usa-isr/he/sahar-hutz_agreements_Egypt-Annex-B-QIZ.pdf
  13. https://www.gov.il/BlobFolder/policy/israel-efta-free-trade-agreement/he/sahar-hutz_agreements_efta-fta-en.pdf
  14. https://www.gov.il/BlobFolder/policy/israel-efta-free-trade-agreement/he/sahar-hutz_agreements_efta-fta-protocol-a-2018.pdf
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  23. https://www.gov.il/BlobFolder/policy/eu-isr-fta/he/sahar-hutz_agreements_euro-fta-agri-2010-en.pdf
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  29. https://www.gov.il/BlobFolder/policy/israel-canada-fta/he/sahar-hutz_agreements_canada-mraEng.pdf
  30. https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/israel/fta-ale/text-texte/toc-tdm.aspx?lang=eng
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  47. https://embassies.gov.il/seoul-en/Pages/Israel-Korea-FTA.aspx
  48. "Israel and the UAE complete negotiations on a bilateral free trade agreement".
  49. "Australia-Israel Free Trade Agreement". 3 March 2021.
  50. "Israel-China free-trade pact seen imminent". Globes. 9 September 2020.
  51. "Israel on way to free trade with China, India, UAE". Globes. 22 March 2022.
  52. "Israel and Iran both set to join Russia-led free trade zone". The Times of Israel.
  53. "Guatemala - Israel Trade Agreement - CentralAmericaData :: The Regional Business Portal".
  54. "Israel on way to free trade with China, India, UAE". Globes. 22 March 2022.
  55. "FTA can take India-Israel friendship to the next level | India News - Times of India". The Times of India.
  56. "Israel-China free-trade pact seen imminent". Globes. 9 September 2020.
  57. "Israel and Japan in Talks to Enter a Free Trade Agreement". 15 January 2019.
  58. https://embassies.gov.il/hanoi/AboutIsrael/Economic-Trade-Affairs/Pages/Departments.aspx
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