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5.4.2. Israel-USA Free Trade Area Agreement<br />

BDO Israel<br />

DOING BUSINESS IN ISRAEL<br />

In 1985, Israel and the United States entered into the Free Trade Area<br />

Agreement. This Agreement was fully implemented on January 1, 1995.<br />

The Agreement eliminates all import duties and non-tariff barriers<br />

between Israel and the United States. The Agreement allows non-tariff<br />

restrictions on agricultural products.<br />

“Rules of origin” exist, which are different from those of the European<br />

Agreement, to determine products’ eligibility to benefits from this<br />

Agreement.<br />

5.4.3. Israel-EFTA Free Trade Area Agreement<br />

The Agreement between Israel and EFTA countries became effective on<br />

January 1, 1993. The Agreement is intended to eliminate or reduce<br />

duties, mainly on industrial goods, and also to reduce non-tariff barriers.<br />

This Agreement has its own “rules of origin” as well, different from<br />

those of the above mentioned agreements.<br />

5.4.4. Israel-Canada Free Trade Agreement<br />

A Free Trade Area Agreement between Israel and Canada was signed in<br />

July 1996 and became effective on January 1, 1997. The Agreement<br />

expresses the parties’ intention to gradually eliminate duties on<br />

industrial goods and some agricultural products.<br />

The Agreement with Canada offers special advantages, since both<br />

parties have entered into FTA Agreements with the United States,<br />

enabling Israel to include United States origin components in its exports<br />

to Canada, and Canadian components in its exports to the United States,<br />

without breaching any “rules of origin”.<br />

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