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<title>EGGLETON ANNOUNCES IMPLEMENTATION OF THE CANADA-ISRAEL FREE TRADE AGREEMENT</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">December 27, 1996 No. 260</font></p>
<p align="CENTER"><font face="Univers" size="+2">EGGLETON ANNOUNCES IMPLEMENTATION OF THE </font></p>
<p align="CENTER"><font face="Univers" size="+2">CANADA-ISRAEL FREE TRADE AGREEMENT</font></p>
<p><font face="Courier">The Honourable Art Eggleton, Minister for International Trade, today announced
the implementation of the Canada-Israel Free Trade Agreement will take place on
January 1, 1997. </font></p>
<p><font face="Courier">"The implementation of the Canada-Israel Free Trade Agreement now allows Canadian
exporters to trade on an equal footing with their U.S. and European competitors,
who have had the benefit of free trade agreements with Israel," said Mr. Eggleton.
"Increased opportunities for Canadian exporters will ultimately create jobs and
growth for all Canadians."</font></p>
<p><font face="Courier">The following are the main elements of the Agreement:</font></p>
<p><font face="Courier"> </font></p>
<p><font face="Courier"> Tariffs will be removed from industrial products of Canadian or Israeli origin
beginning January 1, 1997. Only women's swim wear, 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.</font></p>
<p><font face="Courier"> 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.</font></p>
<p><font face="Courier">To resolve any disputes under the Agreement, both countries have agreed to be
governed by a binding dispute settlement process.</font></p>
<p><font face="Courier">Canada continues its negotiations with the Palestinian Authority to extend the
same benefits to the West Bank and Gaza that Israel will enjoy under the Canada-Israel Free Trade Agreement. </font></p>
<p><font face="Courier">Additional information on the Agreement is available through the Internet under
"international business development" at http://www.dfait-maeci.gc.ca or through
FaxLink at </font></p>
<p><font face="Courier">(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.</font></p>
<p align="CENTER"><font face="Courier">- 30 -</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Nicole Bourget</font></p>
<p><font face="Courier">Director of Communications</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332 </font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874 </font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
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