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Trade Compliance Center

ISRAEL FREE TRADE AGREEMENT

Entered into Force August 19, 1985



Agreement on the Establishment of a Free Trade Area between the Government of Israel and the Government of the United States of America


[PREAMBLE]



The Government the United States of America and the Government of Israel,

Desiring to promote mutual relations and further the historicfriendship

between them;

Determined to strengthen and develop the economic relations between them

for their mutual benefit;

Recognizing that Israel's economy is still in a process of development,

wishing to contribute to the harmonious development and expansion of world

trade;

Wishing to establish bilateral free trade between the two nations through

the removal of tradebarriers;

Wishing to promote cooperation in areas which are of mutual interest;

Have decided to conclude this Agreement:








ARTICLE 1

[ESTABLISHMENT OF A FREE TRADE AREA]

The Governments of the United States of America and Israel (the Parties),

consistent with Article XXIV (8) (b) of the General Agreement on Tariffs

and Trade (GATT), establish hereby between them a FreeTrade Area and will

in accordance with the provisions of this Agreement eliminate the duties

and other restrictive regulations of commerce on trade between the two

nations in products originating therein.


ARTICLE 2

1. Products of Israel shall, when imported into the customs territory of

the United States, be governed by the provisions of Annex 1.


2. Products of the UnitedStates shall, when imported into Israel, be

governed by the provisions of Annex 2.


3. The rules of origin applicable to this Agreement are set forth in

Annex 3.


4. The commitment with respect to export subsidies is contained in Annex 4.


5. The Annexes to this Agreement constitute an integral part thereof.







ARTICLE 3

[RELATIONSHIP TO OTHER AGREEMENTS]

TheParties affirm their respective rights and obligations with respect to

each other under existing bilateral and multilateral agreements, including

the Treaty of Friendship, Commerce and Navigation between the United

States and Israel and the GATT. In the event of an inconsistency between

provisions of this Agreement and such existing agreements, the provisions

of this Agreement shallprevail.


ARTICLE 4

[NEW RESTRICTIONS ON TRADE]

New customs duties on imports or exports or any charge having equivalent

effect and new quantitative restrictions on imports or exports or any

measure having equivalent effect may be introduced in the trade between

the Parties only if permitted by this Agreement or by the GATT as in

effect on the date of entry into force of thisAgreement and as

interpreted by the CONTRACTING PARTIES to the GATT and insofar as not

inconsistent with this Agreement.



ARTICLE 5

[RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION]

1. When a product is being imported in such increased quantities

as to be a substantial cause of serious injury or the threat thereof to domestic
producers of like or directly competitiveproducts, the importing Party

shall consult with the other Party in accordance with Article 18 before

taking any action affecting the trade of the other Party.


2. Neither Party shall take an action which provides solely for a

suspension of the reduction or elimination of any duty provided for by

this Agreement unless the serious injury or threat thereof which is

substantially causedby imports to the domestic producers of like or

directly competitive products results from the reduction or elimination of

a duty provided for by this Agreement.


3. When, in the view of the importing Party, the importation of a product

from the other Party is not a substantial cause of the serious injury or

threat thereof referred to in paragraph 1, the importing Party may except...