Canada - Israel Free Trade Agreement (CIFTA): Update 2003

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The Canada-Israel Free Trade Agreement (CIFTA) was implemented on 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 has partially restored Canada's competitive position in the Israeli market where the United States and European Union had gained preferential access through negotiated bilateral agreements. In 1999, under existing provisions within 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 at the outset of this round of bilateral negotiations to exclude the products of the dairy, eggs and poultry sectors.

On November 1, 2003, Canada and Israel implemented additional agricultural tariff concessions, which will assist Canadian exporters in maintaining their competitive position vis-à-vis exports from other countries, and secure long term opportunities for Canadian agri-food products. After negotiations were concluded earlier this year, Canada and Israel agreed again to enter into further discussions within two years, to seek additional means of expanding the scope of liberalized trade in agriculture and agri-food products between the two parties.

Including tariff preferences implemented on November 1^st, the Canada-Israel Free Trade Agreement 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 principal 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. The CIFTA agreement 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.

Relevant Links:

• Canada's Consolidated Concessions (29.04.03)
• Free Trade Agreement Between the Government of Canada and the Government of the State of Israel
• Background on Canada-Israel Free Trade Agreement
• Israel’s Consolidated Concessions (29.04.03)

For more information, please contact:

David MacDonald
Telephone: (613) 759-6164
Fax: (613) 759-7503
E-mail: macdonaldds@agr.gc.ca