NEWS RELEASES
CANADA AND ISRAEL SIGN FREE TRADE AGREEMENT
July 31, 1996 No. 135
CANADA AND ISRAEL SIGN FREE TRADE AGREEMENT
The Honourable Art Eggleton, Minister for International Trade, and the Minister of
Industry and Trade of the State of Israel, Natan Sharansky, today signed the
Canada-Israel Free Trade Agreement.
"This agreement symbolizes the direction Canada is taking to further liberalize
trade in order to stimulate exports and, in turn, create jobs for Canadians," said
Mr. Eggleton. "It will put Canadian exporters on an equal footing with their U.S.
and European competitors, who have had the benefit of free trade agreements with
Israel."
The following are the main elements of improved market access in the Agreement:
Tariffs will be removed from industrial products of Canadian or Israeli origin
beginning January 1, 1997. Only women's swimwear, at Canada's request, and
certain cotton fabric, at Israel's request, will continue to be subject to
tariffs, although these tariffs will be phased out over the first two and a half
years.
Duty-free access or low duties will be applied to a variety of agricultural and
fisheries products exported by both countries. For Canada, such items include
grains, grain products, beef, maple sugar, alcoholic beverages and various
processed foods. Both sides have excluded dairy, poultry and egg products.
Renewed discussions are to be held within two years, however, with the aim of
further liberalizing agri-food trade.
To resolve any disputes under the Agreement, both countries have agreed to be
governed by a binding dispute settlement process.
The next step will be to initiate the implementation process on each side,
including the passage of any necessary legislation. If the implementation process
is complete on both sides by the end of this year, the Agreement will take effect
January 1, 1997.
It is Canada's intention to extend the same benefits to the Palestinians that
Israel will enjoy under the Free Trade Agreement. We are examining ways to
achieve this with the Palestinian Authority.
In support of this new agreement, both ministers also announced the formation of a
business advisory group to function within the Canada-Israel Joint Economic
Commission. The mandate of the new group is to produce innovative approaches to
stimulate business and to provide advice to the two governments on trade issues.
Additional information on the Canada-Israel Free Trade Agreement is available
through the Internet under "international business development" at
http://www.dfait-maeci.gc.ca or through FaxLink at (613) 944-4500. Information is
also available upon request through the InfoCentre by telephone at (613) 944-4000
and by fax at (613) 996-9709.
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For further information, media representatives may contact:
Nicole Bourget
Director of Communications
Office of the Minister for International Trade
(613) 996-6271
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca
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