December 27, 1996 No. 260

EGGLETON ANNOUNCES IMPLEMENTATION OF THE

CANADA-ISRAEL FREE TRADE AGREEMENT

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.

"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."

The following are the main elements of the Agreement:

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.

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.

To resolve any disputes under the Agreement, both countries have agreed to be governed by a binding dispute settlement process.

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.

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

(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.

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For further information, media representatives may contact:

Nicole Bourget

Director of Communications

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca