Canada-Israel Free Trade Agreement - CIFTA

To Whom Does This Apply?

Eligible Area

All Canadian provinces and territories.

Eligible Activities

On January 1, 1997, the Canada-Israel Free Trade Agreement (CIFTA) came into effect removing tariffs from most manufactured products exported and imported to each country. Since that time, the CIFTA has been amended twice:

• in 2002, chapter 3 (Rules of Origin) and section 5.12 of chapter 5 (Other Customs Related Market Access Issues) were amended to allow originating goods, except textiles or apparel, from either Canada or Israel to undergo some minor processing in the United States without losing their originating status while in transit to the other party;
• more recently, amendments to Annex 2.1.2 (A and B) took effect November 1, 2003 which expanded to almost 60% of the agricultural goods Canada exports to Israel.

The amendments now include duty-free access to Canadian exports of frozen blueberries, potato flakes and flour, wheat, maize, along with some frozen vegetable and pulse products. In addition, Israel will grant Canada new or increased tariff rate quotas for products such as chickpeas (100 tonnes), canary seed (300 tonnes) and french fries (50 tonnes), as well as a 50% tariff preference for Canadian pet food products on Israel's currently-applied tariff most-favour nation (MFN) rate. Canada, in turn, will grant immediate duty-free access to Israeli exports of cut roses, fresh cherry tomatoes, fresh lettuce, fresh peppers, prepared tomatoes and tomato juice, frozen baby carrots, cubed Ein Dor melons in syrup and other food preparations.

Ineligible Activities

Services are not included in the CIFTA. Supply-managed sectors such as dairy, poultry and eggs are also not included.

Summary

Discussions continue on how to expand the CIFTA further.

Note: see the document Canada-Israel Free Trade Agreement - Agriculture.

For more information, you may visit the page Regional and Bilateral Initiatives on the International Trade Canada's Web site.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Ontario Contact(s):
See National Contact.