The free trade agreements of Israel represent Israel's cooperation in multinational trade pacts and participation in the global economy. Israel's first free trade agreement was signed in 1985 with the United States of America. Since then, Israel has signed 16 free trade agreements (free trade agreements) with 48 countries and economic blocks such as the European Union, the European Free Trade Association and Mercosur.
Agreement name | Countries/blocs | Start of negotiations | Date of signature | Approval and entry into force | Status | Updates |
---|---|---|---|---|---|---|
Australia | February 2021 | - | - | - | ||
Bahrain | October 2022 | - | - | - | ||
Canada–Israel Free Trade Agreement [1] | Canada | 31 July 1996 | 1 January 1997 | In power | 2019 | |
China | September 2016 | - | - | - | ||
Colombia–Israel Free Trade Agreement | Colombia | March 2012 | 30 September 2013 | 11 August 2020 | In power | |
Costa Rica | March 2023 | - | ||||
Eurasian Economic Union | April 2018 | - | ||||
EFTA –Israel Free Trade Agreement [2] | European Free Trade Association | 17 September 1992 | 1 January 1993 | In power | 2018 | |
EU–Israel Free Trade Agreement | European Union | 20 November 1995 | 1 June 2000 | In power | 2010 2013 | |
Georgia | 2024 | - | - | - | ||
Guatemala–Israel Free Trade Agreement | Guatemala | 29 August 2019 | 8 September 2022 | 1 March 2024 | In power | |
India | May 2010 | - | - | - | ||
Japan | January 2019 | - | - | - | ||
Israel–Jordan Free Trade Agreement | Jordan | 1994 | 26 October 1994 | 25 October 1995 | In power | 2004 |
Israel–Mercosur Free Trade Agreement [3] | Mercosur | June 2005 | 18 December 2007 | 9 September 2011 | In power | 2012 |
Israel–Mexico Free Trade Agreement [4] | Mexico | April 1998 | 10 April 2000 | 1 July 2000 | In power | 2008 |
Moldova | 1 August 2023 | - | - | - | ||
Israel–Panama Free Trade Agreement | Panama | 26 November 2015 | 8 May 2018 | 1 January 2020 | In power | |
Israel–South Korea Free Trade Agreement | South Korea | May 2016 | 12 May 2021 | 1 January 2023 | In power | |
Israel–Turkey Free Trade Agreement | Turkey | 14 March 1996 | 1 May 1997 | In power | 2006 2007 | |
Israel–Ukraine Free Trade Agreement | Ukraine | 2012 | 21 January 2019 | 1 January 2021 | In power | |
Israel-UAE Free Trade Agreement | United Arab Emirates | November 2021 | 31 May 2022 | 1 April 2023 | In power | |
Israel–United Kingdom Trade Continuity Agreement | United Kingdom | EU–Israel Free Trade Agreement (before Brexit) | 18 February 2019 | 1 January 2021 | In power | |
Israel–United States Free Trade Agreement [5] | United States | 1 January 1984 | 22 April 1985 | 1 September 1985 | In power | 2004 2017 |
Israel–Vietnam Free Trade Agreement | Vietnam | 2016 | 24 July 2023 | - | Signed |
Israel and the United States signed the Israel–United States Free Trade Agreement, which was the first United States free trade agreement with a country outside of North America. The free trade agreement came into force on 1 September 1985. To be party to the free trade agreement, goods must be a product of Israel or the United States or have had a significant portion produced in Israel or USA.
In 2004, the agreement was extended to agricultural products and telecommunication equipment. [6] [7] [8] [9] [10] [11] [12] In 2017 it was further expanded to include rules of origin. [13]
The United States and Israel are also party to the Qualified Industrial Zone agreement, which serves to promote co-production and economic cooperation between Israel and Egypt. [14] [15] [16]
Israel and the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland and Liechtenstein, signed a free trade agreement in 1992 which came into force a year later. [17] The free trade agreement originally included trade of goods, rules of origin, and intellectual property rights, and in 2018 was updated to extend to agricultural products. [18] [19] [20] [21] [22] [23]
The free trade agreement between Israel and Jordan was signed in 1995, one year after the 1994 Israel–Jordan peace treaty in 1994. The agreement of 1995 includes rules of origin and goods that are 100%, 50% or 30% duty-free. [24] The free trade agreement was updated. in 2004 [25]
The free trade agreement between Israel and the EU was signed on 20 November 1995 and came into force on 1 June 2000. [26] The original free trade agreement included clauses on rules of origin, duties, service and industrial trades and co-operations, tourism, and transport, and was updated in 2010 to include agriculture. [27]
In 2013 Israel and the EU signed the Agreement on Conformity Assessment and Acceptance of Industrial, giving good manufacturing practice exemption to the Israeli medical industry and easing the export of medical goods from Israel to the European Union. [28]
Israel and Turkey signed a free trade agreement on 14 March 1996, which came into force on 1 May 1997.The free trade agreement covers topics including duties on agriculture, industry and services to right of origin. [29] The free trade agreement was updated in 2006 and 2007. [30] [31]
Israel and Canada signed their first free trade agreement on 31 July 1996 which came into force on 1 January 1997, listing a number of goods without duties or with low fees of duty. [32] Israel and Canada also signed an agreement on telecommunication equipment. [33] The free trade agreement was updated in 2019, [34] eliminating tariffs on goods from Israel and Canada. [35] [36]
Israel and Mexico signed a free trade agreement on 10 April 2000, [37] and updated the free trade agreement in 2008 on the matter of technology. [38]
Israel and Mercosur signed a free trade agreement on 8 December 2007 and the free trade agreement came into force on 1 June 2010. [39] Venezuela suspended their relationship with Israel in 2009, and was later suspended from Mercosur in 2016. Mercosur extended the free trade agreement with Israel in 2012. [40]
The free trade agreement between Israel and Colombia was signed in 2013 and came into force in 2020. [41] The free trade agreement includes exemption or reduction of duties on different types of industrial goods, which enjoys 5% - 35% duties and other sectors such as agriculture. [42] [43]
The free trade agreement between Israel and Panama was signed in 2018 and came into force in 2020. [44]
Israel and Ukraine signed a free trade agreement on 21 January 2019; it came into force on 1 January 2021. [45] The agreement exempted from duties goods such as industrial products, agricultural products, raw materials and more. [46] [47]
Due to Brexit, the United Kingdom withdrew from the free trade agreement between the EU and Israel. Israel and the United Kingdom signed their free trade agreement in 2019 before Brexit came into effect. The free trade agreement came into force on 1 January 2021 and replaced the Israel-EU free trade agreement. [48]
Israel and South Korea have signed a free trade agreement on 12 May 2021 to improve investments, removing barriers, and other topics. The FTA includes electronics, cosmetics, cars, and more. Date of entry is the 01.01.2023. [49] The free trade agreement took effect at the end of 2022. [50] [51] [52]
United Arab Emirates
Israel and the United Arab Emirates (UAE) signed a free trade agreement on 31 May 2022. Tariffs will be removed or reduced on 96% of goods traded between the nations. The UAE predicted the Comprehensive Economic Partnership Agreement would boost annual bilateral trade to more than $10 billion within five years. [53]
Israel and the United Arab Emirates ratified their free trade agreement on 11 December 2022. [54] [55] The free trade agreement went into effect on 1 April 2023. [56] [57] [58]
Israel currently is party to two free trade agreements that have been signed but not have entered into force.
Israel is negotiating bilateral free trade agreements with the following countries and trade blocs:
Israel is undertaking exploratory discussions of bilateral or multilateral FTAs with the following countries and trade blocs, although formal negotiations have not yet begun:
The Free Trade Area of the Americas (FTAA) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas, excluding Cuba. Negotiations to establish the FTAA ended in failure, however, with all parties unable to reach an agreement by the 2005 deadline they had set for themselves.
The Central European Free Trade Agreement (CEFTA) is an international trade agreement between countries mostly located in Southeastern Europe. Founded by representatives of Poland, Hungary and Czechoslovakia, CEFTA in 2006 expanded to Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Moldova, Montenegro, North Macedonia, Romania, Serbia, Slovenia and the UNMIK.
A European Union Association Agreement or simply Association Agreement (AA) is a treaty between the European Union (EU), its Member States and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links.
At present, there are six multi-lateral free trade areas in Europe, and one former free trade area in recent history. Note that there are also a number of bilateral free trade agreements between states and between trade blocks; and that some states participate in more than one free trade area.
A free trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral. Bilateral trade agreements occur when two countries agree to loosen trade restrictions between the two of them, generally to expand business opportunities. Multilateral trade agreements are agreements among three or more countries, and are the most difficult to negotiate and agree.
The US-Morocco Free Trade Agreement is a bilateral trade agreement between the United States and Morocco. The agreement was signed on June 15, 2004, followed by U.S. President George W. Bush's signing of the USMFTA Implementation Act on August 17, 2004. The United States House of Representatives ratified the pact on July 22, 2004 by a 323–99 vote. The United States Senate passed the bill by unanimous consent on July 21, 2004. The Morocco FTA came into effect on January 1, 2006.
The United States–Israel States Free Trade Agreement (FTA) is a trade pact between the State of Israel and the United States of America established in 1985 to lower trade barriers in some goods. The agreement reduces rates of duty, and in some case eliminates all duties, on merchandise exported from Israel to the United States. The agreement also covers merchandise exported from the Gaza Strip and the West Bank.
New Zealand is party to several free trade agreements (FTAs) worldwide.
Commonwealth of Independent States Free Trade Area (CISFTA) is a free-trade area among Russia, Ukraine, Belarus, Uzbekistan, Moldova, Armenia, Kyrgyzstan, Kazakhstan and Tajikistan. Five CISFTA participants, all except Ukraine, Uzbekistan, Moldova and Tajikistan, are members of the Eurasian Economic Union, comprising a single economic market, although Uzbekistan and Moldova are observers.
Free Trade Agreement between Mexico and the European Union, is a trade agreement between the European Union and Mexico. It was signed on December 8, 1997, in the city of Brussels, under the designation "Agreement of Economic Partnership, Political Coordination and Cooperation between the United Mexican States and the European Community and its members". On October 1, 2000 the agreement came into force, and taxes applying to a large quantity of importing goods were eliminated or reduced.
The United States-Chile Free Trade Agreement is a free trade agreement (FTA) between the United States and Chile signed on June 6, 2003. The pact came into force on January 1, 2004. On that date, tariffs on 90% of U.S. exports to Chile and 95% of Chilean exports to the United States were eliminated. The agreement also established that Chile and the U.S. will establish duty-free trade in all products within a maximum of 12 years (2016). In 2009, bilateral trade between the United States and Chile reached US$15.4 billion, a 141% increase over bilateral trade levels before the U.S.-Chile FTA took effect. In particular, U.S. exports to Chile in 2009 showed a 248% increase over pre-FTA levels.
The free trade agreements of Canada represents Canada's cooperation in multinational trade pacts and plays a large role in the Canadian economy. Canada is regularly described as a trading nation, considering its total trade is worth more than two-thirds of its GDP. Of that total trade, roughly 75% is done with countries that are part of free trade agreements with Canada—primarily the United States through the Canada–United States–Mexico Agreement (CUSMA), and its predecessor the North American Free Trade Agreement (NAFTA). By the end of 2014, Canadas bilateral trade hit Can$1 trillion for the first time. Canada is a signatory to 15 free trade agreements with 51 different countries.
The Korea–Australia Free Trade Agreement (KAFTA) is a bilateral agreement seeking to reduce trade and investment barriers between Australia and South Korea. The agreement, which came into effect on the 12th of December 2014 provides Australian goods exporters, service providers and investors with significantly improved access to the South Korean market. The trade agreement stems from decades of bilateral relations, encompassing security, trade and diplomatic ties from 1962, when then President Park Chung-Hee introduced a series of five-year plans designed to spur globalisation efforts and industrial development in Korea following the end of the Korean War.
New Zealand and the European Union (EU) have solid relations and increasingly see eye-to-eye on international issues. The EU-New Zealand relations are founded on a Joint Declaration on Relations and Cooperation, first agreed in 2007. It covers not just economic relations, but broader political issues and cooperation.
The United Kingdom–United States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between the United Kingdom and the United States.
South Korea has concluded free trade agreements (FTAs) and other agreements with a trade component with countries around the world and is negotiating with others.
India is party to free trade agreements (FTAs) and other trade agreements with many countries and trade blocs, and is negotiating with many others. As of 2022, India has preferential access, economic cooperation and FTA with more than 50 individual countries.
Vietnam, although a relatively young and small nation, has successfully established trade relations with dozens of countries worldwide. This is especially evident in the number of free trade agreements (FTAs) that the country has signed and is participating in. Being part of the Association of Southeast Asian Nations (ASEAN), economic opportunities for Vietnam expands beyond bilateral trade agreements with specific countries to include multilateral trade agreements via the ASEAN Free Trade Area (AFTA).