Canada - Israel Free Trade Agreement (CIFTA) - Agriculture

The Canada-Israel Free Trade Agreement (CIFTA) was implemented January 1, 1997. The agreement improves market access for agri-food products of export interest to both Canada and Israel, and eliminates virtually all tariffs on industrial goods. It partially restored Canada's competitive position in the Israeli market where the United States and the European Union had gained preferential access through negotiated bilateral arrangements.

Eligibility Criteria

Canadian businesses that conduct importing and exporting activities with Israel.

Eligible Activities

Import and export activities between Canada and Israel.

Summary

In 1999, under existing provisions within the Canada-Israel Free Trade Agreement (CIFTA) to further liberalize trade, Canada and Israel began negotiations to expand the list of agricultural and food products under the agreement. Canada and Israel agreed to exclude the products of the dairy, eggs and poultry sectors.

On November 1, 2003, Canada and Israel implemented more agricultural tariff concessions, which will help Canadian exporters maintain their competitive position, and secure long term opportunities for Canadian agri-food products. After negotiations, Canada and Israel agreed again to enter into further discussions within two years, to find more ways of expanding the scope of liberalized trade in agriculture and agri-food products between each other.

Including tariff preferences implemented on November 1^st , CIFTA applies to approximately 82% of Canadian exports to Israel. The total two-way trade in agri-food products between Canada and Israel in 2002 was valued at over $32.6 million. In 2002, Canada's main agricultural exports to Israel were pulse crops (dried beans, peas and lentils) at $4.7 million, while Israel's main exports to Canada were fresh or chilled vegetables and frozen vegetables at $5.7 million.

Israel's recent immigration has fuelled an increase in demand for food, both in terms of quality and selection. CIFTA gives Canada a chance to take advantage of this growing market and the opportunity to supply it on a consistent and regular basis.

In most other areas, such as sanitary and phytosanitary barriers, technical barriers, and intellectual property rights, trade will continue to be governed by the agreements under the World Trade Organization.

Nova Scotia Contact(s):
See National Contact.