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<title>CANADIAN AND ISRAELI NEGOTIATORS REACH TENTATIVE AGREEMENT ON PROPOSED FREE TRADE AGREEMENT</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">January 14, 1996 No. 4</font></p>
<p align="CENTER"><font face="Univers" size="+2">CANADIAN AND ISRAELI NEGOTIATORS</font></p>
<p align="CENTER"><font face="Univers" size="+2"> REACH TENTATIVE AGREEMENT ON PROPOSED </font></p>
<p align="CENTER"><font face="Univers" size="+2">FREE TRADE AGREEMENT</font></p>
<p><font face="Courier">The Honourable Roy MacLaren, Minister for International Trade, announced today
that Canadian and Israeli negotiators have reached a tentative agreement on the
proposed free trade agreement between the two countries.</font></p>
<p><font face="Courier">The tentative agreement, which must now be reviewed by both governments, would
establish a free trade regime between Canada and Israel featuring full tariff
elimination on all manufactured goods and an agricultural and fisheries package
involving goods of export interest to each country.</font></p>
<p><font face="Courier">The agreement is still in draft form, and officials will continue to work at the
technical level in the coming weeks. Details about specific provisions of the
agreement will be released once the text is finalized and approved by both
governments. It could go into effect on July 1, 1996.</font></p>
<p><font face="Courier">The initiation of negotiations was announced by Prime Minister Chrétien on
November 24, 1994, following a meeting in Ottawa with the late Israeli prime
minister, Yitzhak Rabin.</font></p>
<p><font face="Courier">A free trade agreement with Israel will ensure Canada has access to the Israeli
market on terms equivalent to those of the United States and the European Union,
which already have free trade arrangements with Israel.</font></p>
<p><font face="Courier">"This agreement will enable Canadian companies pursuing business opportunities in
Israel to compete on an equal footing with their international competitors," Mr.
MacLaren said.</font></p>
<p><font face="Courier">The agreement will apply to the West Bank and Gaza by virtue of the customs union
negotiated between Israel and the Palestinian Authority. Canada has offered to
negotiate free trade agreements with other countries in the Middle East.
Liberalized trade would contribute to economic development in the region and
further the Middle East peace process.</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">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>
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