United States Israel Free Trade Agreement

1. Where a good is imported in such large quantities as to constitute a substantial cause of material injury or a risk of serious injury to domestic producers of like or directly competitive products, the importing Party shall consult the other Contracting Party in accordance with Article 18 before taking measures affecting the trade of the other Party. The Free Trade Agreement contains a non-binding Memorandum of Understanding to remove barriers to trade in the tourism, communication, banking, insurance, business consulting, accounting, justice, IT services and advertising sectors. It also contains an agreement to eliminate all restrictions on government procurement and calls on Israel to relax its compensation obligations for government authorities other than the Israeli Ministry of Defense. 3. If, in the opinion of the importing Party, the importation of a good from the other Party is not a significant cause of the material injury or threat of serious injury referred to in paragraph 1, the importing Party may exempt the product of the other Party from any import facility that may be imposed on imports of that good from third countries; taking into account the objective of implementing bilateral free trade, national legislation and the international obligations of the Parties, as set out in this Agreement. NOTE: With effect from 1 January 1995, all tariffs on the vast majority of Israeli exports to the United States have been eliminated. For certain agricultural products, Israel retains its full special duty-free status for these products, in accordance with wto obligations. In addition, Israel receives duty-free quotas, beyond WTO commitments, for certain products defined in the us-Israel agricultural agreement signed on 4 November 1996.

SEE THE FULL TEXT OF THE U.S.-ISRAEL AGRICULTURAL AGREEMENT, WHICH APPEARS SEPARATELY. 1. In so far as its industrialization and development require safeguard measures, Israel may, until 31 December 1990, after consulting the Joint Committee and thereafter after agreement within the Joint Committee, introduce, increase or restore ad valorem duties exceeding by 20 percentage points the level otherwise applicable. The total value of the goods to which these measures may be applied may not exceed 10% of the total value of Israeli imports from the United States in 1984. With regard to local currency financing under the Export Production Fund, Israel will freeze the export subsidy component for four years from the date of accession to the subsidy code and eliminate the export subsidy element for six years from the date of accession to the subsidy code. 3. In order to promote the harmonious development of trade in agricultural products, the Joint Committee shall set up, in accordance with Article 17 (3) (b), a working party which shall meet at the request of a Contracting Party to examine questions relating to paragraphs 1 and 2 of this Article. 7. The Parties agree to consider without delay, within the framework of the Joint Committee established by this Agreement, further measures to liberalise trade, both in the field of government procurement and as regards compensation requirements. In particular, it was agreed that in the event of an extension of the scope of the Agreement on Government Procurement, it would be a priority to consider extending this Agreement to such purchases. Within the framework of bilateral economic relations, the United States is Israel`s largest trading partner and Israel is the 24th largest trading partner of the United States. At $8 billion The merchandise trade deficit in 2014 was US$23 billion and total merchandise exports were US$15 billion.

[6] The main imports and exports of the United States and Israel are gemstones/diamonds, machinery, pharmaceuticals, medical investments, and agricultural products. . . .

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