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Free trade agreements of Israel
Overview of free trade agreements of the State of Israel From Wikipedia, the free encyclopedia
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The free trade agreements of Israel represent Israel's cooperation in multinational trade pacts and participation in the world economy. Israel's first free trade agreement was signed in 1985 with the United States. 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.
Israel
Agreement in force
Agreement signed and waiting for approval
Agreement in negotiations
Potential agreement
QIZ Agreement only
Custom union with the Palestinian Authority (Area A and B)
Israel is a General Agreement on Tariffs and Trade (GATT) member since 5 July 1962,[1] member of the World Trade Organization since 21 April 1995 as it succussed the GATT,[2] and from 7 September 2010 member of the OECD.[3]
Israel signed the United Nations Convention on Contracts for the International Sale of Goods on 22 January 2002,[4] and Israel is also member of the United Nations Commission on International Trade Law for the years 2004 to 2028.[5]
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Free trade agreements summary table
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Free Trade Agreements in force
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The current active bilateral and multilateral Free Trade Agreements of Israel with countries and trade blocks.
Israel – United States Free Trade Agreement
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, and the first free trade agreement of Israel. 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 the United States. The negotiations for the FTA began in 1 January 1984 after discussions between the former US president Ronald Reagan and the former Israeli prime minister Yitzhak Shamir in November 1983. The FTA was signed by Ronald Reagan into law the Trade and Tariff Act of 1984 which paved the way for FTA between Israel and the United States. The FTA was signed on April 22, 1985, and came into force on 1 September 1985.[12] The FTA reduced tariffs on different products in few steps until 1995.[13]
The free trade agreement of 1985 was not including agricultural products, and was decided in article 6 of the free trade agreement that the sector of agricultural products isn't included or will come separately in other agreement. In 2004, the agreement was extended to agricultural products.[14][15][16][17][18][19]
Mutual recognition agreement on telecommunications equipment was signed in 2004,[20] and a joint committee decided to make some changes to the Annex 3 of the Israel – United States Free Trade Agreement (1985) regarding the documentation of Rules of Origin.[21] Additional extension to the Agricultural Agreement (2004) was made in 2022.[22]
The United States and Israel are also party to the Qualified Industrial Zone agreement (QIZ agreement), which serves to promote co-production and economic cooperation between Israel and Egypt. The QIZ agreement was signed on December 14, 2004 in Cairo between Egypt, Israel, and the United States. The QIZ agreement came into force in 2005.[23][24][25]
European Free Trade Association – Israel Free Trade Agreement
Israel and the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland and Liechtenstein, negotiated free trade agreement in June 1991, signed the agreement in 1992 which came into force a year later in 1 January 1993.[28][29] The free trade agreement originally included trade of goods, rules of origin, and intellectual property rights, and on 22 November 2018 was updated to extend to agricultural products. The extension came into force on 1 August 2021.[30][31][32][33][34][35][36]
Israel - Jordan Free Trade Agreement
The free trade agreement between Israel and Jordan was signed alongside wide the peace treaty on 26 October 1994, and one year after on 25 October 1995 the agreement came into force. The agreement of 1995 includes rules of origin and goods that are 100%, 50% or 30% duty-free.[39] The free trade agreement was updated on 23 December 2004.[40]
European Union – Israel Free Trade Agreement
The free trade agreement between Israel and the European Union began and are part of the European Union Association Agreement, Euro-Mediterranean Association Agreement or the Euro-Mediterranean Agreement. The negotiations between Israel and the European Community began on December 1993, signed on 20 November 1995 and came into force on 1 June 2000.[42][43] The original free trade agreement included clauses on rules of origin, duties, service and industrial trades and co-operations, tourism, and transport. Negotiations on additional agricultural trade agreement between the EU and Israel began in 2008, signed on 20 October 2009, and came into force on January 2010.[44][45]
On 20 November 2012 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. The agreement came into force in 2013.[46][47]
In 2002 Israel began the Operation Defensive Shield due to the murder of approximately 730 Israeli civilians and tourists in different terror attacks during the Second Intifada. Some politicians of the European Parliament called to suspend the Association Agreement, as the EU member state were 15 during 2002. The Spanish Foreign Minister Josep Pique haven't ruled out such scenario. Move that was unlikely as other countries such as Germany, UK, Denmark, and the Netherlands were against it.[48]
After the 7th October massacre in 2023 made by Hamas and other Palestinian militant groups and the start of the ground operation, Spain, Ireland, and Belgium questioned the agreements with Israel. The prime minister of Belgium Alexander De Croo called for sanctions against Israel,[49] The prime minister of Ireland even considered to unilaterally suspend trade with Israel,[50] The Spanish Prime Minister Pedro Sanchez together with Ireland tried to push other EU members to suspend the free trade agreement with Israel, and Josep Borrell the Spanish head of the European Union's foreign policy pushed for suspension of relations with Israel. But most EU countries as, Finland, Germany, Austria, the Czech Republic, Hungary, Denmark, the Netherlands, Italy and Greece were against such actions from Josep Borrell, Spain, Ireland, and Belgium against Israel.[51][52][53][54]
Israel - Turkey Free Trade Agreement
Israel and Turkey negotiated free trade agreement since 1994,[57] 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.[58] The free trade agreement was updated in 2006 and 2007.[59][60]
After the 7th October massacre in 2023 made by Hamas and other Palestinians and the start of the ground operation, Turkey decided to stop exports to Israel on may the third 2024 ruled by the Turkish President Recep Tayyip Erdogan.[61] In response, the Israeli Finance Minister Bezalel Smotrich called to abolish the free trade agreement with Turkey and also to impose 100% tariff on import from Turkey.[62] Local Turkish media claimed that products from Turkey arrive to Israel via the Palestinian Authority as export from Turkey to the Palestinian Authority was raised to 526% after the ban.[63]
Canada - Israel Free Trade Agreement
Israel and Canada negotiated free trade agreement since 1994,[57] and 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.[64] Israel and Canada also signed an agreement on telecommunication equipment.[65] The free trade agreement was updated in 2019,[66] eliminating tariffs on goods from Israel and Canada.[67][68]
Israel - Mexico Free Trade Agreement
Israel and Mexico signed a free trade agreement on 10 April 2000,[69] and updated the free trade agreement in 2008 on the matter of technology.[70]
Israel - Mercosur Free Trade Agreement
Israel and Mercosur signed a free trade agreement on 8 December 2007 and the free trade agreement came into force on 1 June 2010.[71] 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.[72]
Colombia - Israel Free Trade Agreement
The free trade agreement between Israel and Colombia was signed in 2013 and came into force in 2020.[73] 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.[74][75]
Israel - Panama Free Trade Agreement
The free trade agreement between Israel and Panama was signed in 2018 and came into force in 2020.[76]
Israel - Ukraine Free Trade Agreement
Israel and Ukraine began negotiations on free trade agreement in 2013 as most of the negotiations took place between 2016 and 2018. The fifth round of negotiations took place on March 8–9, 2017 in Tel Aviv,[77] and the 11th round took place on June 19, 2018 in Jerusalem.[78] The FTA was signed During state visit of the Ukrainian president Petro Poroshenko to Israel on 21 January 2019 alongside the Israeli prime minister Benjamin Netanyahu.[79][80][81] The Verkhovna Rada ratified the FTA with Israel on 11 July 2019,[82] and was later ratified by the Knesset.[83][84] The free trade agreement came into force on 1 January 2021.[85] The agreement exempted from duties goods such as industrial products, agricultural products, raw materials and more.[86][87][88]
Israel - United Kingdom Free Trade Agreement
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.[90]
Israel - South Korea Free Trade Agreement
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.[91] The free trade agreement took effect at the end of 2022.[92][93][94]
Israel - United Arab Emirates Free Trade Agreement
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.[95]
Israel and the United Arab Emirates ratified their free trade agreement on 11 December 2022.[96][97] The free trade agreement went into effect on 1 April 2023.[98][99][100]
Guatemala - Israel Free Trade Agreement
The agreement between Guatemala and Israel which was signed on 8 September 2022 and came into force on the first of March 2024 covers the following in order to promote relations and trade:[101][102]
- Rules of origin
- Mutual Administrative Assistance in Customs Matters
- Trade Cooperation
Israel - Vietnam Free Trade Agreement
Early discussion on free trade agreement took place in 2013 during a visit to Vietnam by Israeli delegation of Israeli agricultural technology companies with the Israel Export Institute.[103] On 30 September 2014, the Economy minister of Israel Naftali Bennett signed a partnership agreement with the Science minister of Vietnam to develop future free trade agreement.[104] At the end of the year on 2. December 2015 a Vietnamese delegation including the Vietnamese Deputy Prime Minister Hoàng Trung Hải visited Israel and meet with the Israeli prime minister Benjamin Netanyahu, which a statement on negotiations on free trade agreement was given.[105] Negotiations took place from 2016. Israel and Vietnam signed the free trade agreement on 24. July 2023 and the agreement came into force on 17 November 2024.[11]
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Free trade agreements not in force
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Signed free trade agreements
All signed free trade agreements by Israel have entered into force.
Under negotiations
Israel is negotiating bilateral free trade agreements with the following countries and trade blocs:
Bahrain
First round of negotiations was made in 2022.[106][107][108][109]
China
The negotiations between Israel and The People's Republic of China started at September 2016.[110] Between 2016 and 2019 8 negotiation rounds were made, and the first direct talks were made in 2019.[111] The FTA was supposed to be signed during 2023 as the agreement was finalized.[112] No development since 2023.[113][114]
Costa Rica
Memorandum of Understanding on negotiations for free trade agreement was signed on 29 March 2023 in Israel between the Minister of Foreign Trade of Costa Rica, Manuel Tovar and the Minister of Economy and Industry of Israel, Nir Barkat. The memorandum begins the start of negotiations for free trade agreement.[115][116][117][118]
Eurasian Economic Union
The negotiations between Israel and the Eurasian Economic Union started in April 2018 after first discussions in November 2016. According to the Eurasian Economic Union the negotiation are at the six round to this date.[119][110] As to the December 2021, almost 3 months before the Russian invasion of Ukraine, no development was made.[120][121][122]
Since 2022, as the Russian invasion of Ukraine continues and the integration of Iran with the EaEU the free trade agreement between Israel and the EaEU sees more obstacles. The Russian annexation and occupation of Crimea, and other Ukrainian territories in eastern Ukraine could lead to problems regarding rules of origin. Also the unrecognised territories Transnistria, Abkhazia and South Ossetia wish to join the EaEU. Israel doesn't recognise the three and sees them as integral part of Georgia and Moldova, countries which Israel also negotiating on free trade agreement. [123][124][125][126] On 25 December 2023 the EaEU and Iran have sign free trade agreement and Iran shows aspirations for further integration as Iran applying to join the EaEU as observer state as it was sent on 27 May 2024. Since the application, Iran and the EaEU discussed the application and the EaEU informed Iran the process, only waiting for the response of the member states. Trade with the Islamic Republic of Iran is illegal by the Israeli law, Trading with the Enemy Ordinance - 1939 (Iran, Iraq, Syria, and Lebanon),[127] and Enlargement of countries like Iran would make any free trade agreement between Israel and the EaEU less likeable.[128][129][130]
Georgia
Declaration on launching a joint feasibility study was signed on 10 May 2018 between the ministers of economy of Israel and Georgia.[131][132][133] During visit to Israel on May 2023 of the Georgian Minister of Foreign Affairs, Ilia Darchiashvili, the declaration on completion of the technical and economic feasibility study for a free trade agreement was signed on 2 May 2023.[134][135] The completion of the feasibility study marked the entry into free trade agreement negotiations.[136] The Georgian Ambassador to Israel, Lasha Zhvania, set the start of the negotiations to take place in 2024.[137]
India
The negotiations between Israel and India started in Mai 2010, as 8 rounds of negotiations were made until November, 2013.[138][110] The negotiations have been resumed on 9 February 2015.[139]
The negotiations have been resumed in 2022 after talks at the end of 2021.[140][141][114][142] During the Israel-India Business Summit 2025 the Israeli Minister of Economy and Trade Nir Barkat said that Israel and India are heading towards signing the agreement.[143]
Japan
Early talks on an Israeli - Japanese free trade agreement were on January 2019 in Jerusalem between the ministers of economy of Israel and Japan, and businesspeople, including executives from Mitsubishi Corporation, Toshiba Corporation, and Sony.[144] On November 22, 2022 the Israeli Prime Minister Yair Lapid visited Tokyo remarking on 70 years of Israeli - Japanese relations, and also to sign an agreement to enter negotiations for a free trade agreement.[145][146][147] Negotiations between Israel and Japan started in 2023.[148][149]
Moldova
Before the visit of the Israeli Foreign Minister Eli Cohen to Moldova, the Israeli Minister of Economy and Trade Nir Barkat and Ambassador of Moldova to Israel Alexandr Roitman meet on 29 July 2023 to discuss free trade agreement between the countries.[150][151][152] Eli Cohen visited Moldova on 8 August 2023 and signed the agreement to start FTA negotiations with the Moldavan Minister of Foreign Affairs and European Integration, Nicu Popescu. Agreement to start FTA negotiations usually takes years, but was signed only after 8 days.[153][154][155]
Serbia
Announcement by the president of Israel Isaac Herzog and the president of Serbia Aleksandar Vučić on 11 September 2024 during a state visit of Isaac Herzog to Serbia. Aleksandar Vučić said that he expect to finalize the Free Trade Agreement with Israel within a few months.[156][157][158]
Potential agreements
Australia
The Australian Department of Foreign Affairs and Trade has completed a free trade agreement feasibility study in February 2021.[159] Early discussions in October 2021, and in January 2022 between ministers and officials took place.[160][161]
In January 2025 the Australian Shadow Trade and Tourism Minister Kevin Hogan called to reinvigorate the free trade agreement negotiations with Israel.[162]
Thailand
First discussions on a free trade agreement between Israel and Thailand were held during the World Economic Forum of 2025 in Davos between the Israeli Minister of Economy and Trade Nir Barkat and the Thai Minister of Commerce Pichai Naripthaphan. Barkat and Pichai have discussed the formation of a joint trade Committee as a pre negotiations step before starting formal negotiations.[163]
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Statistics
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Trade statistics of trade between Israel and countries in which Israel has free trade agreements
Israel - Canada Trade
Israel - Colombia Trade
Israel - EFTA (European Free Trade Association) Trade
Trade with the European Free Trade Association member countries
Iceland
Norway
Switzerland
Israel - EU (European Union) Trade
Trade with European Union member countries
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Itay
Latvia
Lithuania
Luxemburg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Israel - Guatemala Trade
Israel - Jordan Trade
Israel - Mercosur Trade
Trade with Mercosur member countries
Argentina
Brazil
Paraguay
Uruguay
Israel - Mexico Trade
Israel - Panama Trade
Israel - South Korea Trade
Israel - Turkey Trade
Israel - Ukraine Trade
Israel - United Arab Emirates Trade
Israel - United Kingdom Trade
Israel – United States Trade
Israel - Vietnam Trade
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See also
References
External links
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