The United States-Israel Free Trade Agreement

The United States-Israel Free Trade Agreement

b. One or more of the following situations would be reported as one or more of the following: a significant deterioration in trade and current account positions, considerable pressure on the exchange rate or a significant decline in net reserves, as expected either in a decline in reserves or in an increase in short-term debt. 2. With regard to the matters referred to in paragraph 1, the Parties shall consult any difficulties that may arise in their trade in agricultural products and shall endeavour to find solutions for trade in agricultural products, provided that they do not endanger animal and plant health. The free trade agreement between Israel and the United States was signed to set an example for the rest of the world to promote trade liberalization. The U.S. goals were to create bilateral economic relations with Israel beyond military support, reduce Israel`s dependence on U.S. aid, and strengthen the Israeli economy. The goal of Israel`s free trade agreement was to secure a large trade market outside the Arab boycott region due to political conflicts, to create trade with higher-income countries in order to deleverage, and to strengthen relations between the United States beyond economic means. [5] It is considered that the Parties shall consult, at the request of one of the Parties, or whenever special circumstances so require, including the balance of payments conditions relating to the operation of this Agreement.

The United States-Israel Free Trade Agreement (FTA) is a 1985 trade pact between the State of Israel and the United States of America to remove trade barriers to certain goods. The agreement reduces tariffs and, in some cases, removes all tariffs on products exported from Israel to the United States. [1] The agreement also applies to goods exported from the Gaza Strip and the West Bank. [Clarification needed] The Parties recognize the importance of trade in services and the need to maintain an open system of exports of services that would minimize restrictions on the movement of services between the two nations. To this end, the Parties agree to develop means of cooperation in the field of services, in accordance with the provisions of a declaration to be made by the Parties. 4. A temporary trade measure applied in accordance with paragraph 1 may remain in force for a maximum period of 150 days, unless it is extended by the competent legislative body of the Contracting Party concerned for a subsequent period of 150 days. Quantitative restrictions may only be extended for an additional period of 150 days. The United States-Israel Joint Committee (JC) is the central monitoring body for the free trade agreement.

At its last meeting in February 2016, the JC discussed possible new joint efforts to increase bilateral trade and investment. During the meeting, the United States and Israel noted progress in removing a number of specific barriers to bilateral trade in standards and customs measures and agreed to continue to support existing dialogues on these issues. The U.S.-Israel Free Trade Agreement is obsolete at present, as it only has detailed obligations for trade in goods, while recent free trade agreements contain detailed obligations on agriculture, services, investment, intellectual property protection, standards, transparency, and the rule of law. 8. The temporary trade measures referred to in points 2(a) and (b) shall apply to all imports, with the exception that certain imports may be excluded if their exclusion improves the effectiveness of the measures in accordance with the objectives referred to in paragraph 1. Wishing to establish bilateral free trade between the two nations by removing barriers to trade, at the February 2016 JC meeting, Israel proposed to resume negotiations for a permanent agreement succeeding the current U.S.-Israel Agreement on Trade in Agricultural Products (ATAP) .. . . .