Israel exported $55.8 billion worth of goods in 2016. Imports totaled $61.9 billion in the same year. There was US$102.3 billion worth of exports (goods and services) and $96.7 billion worth of imports in 2017.

Since 1997, the United States has been Israel’s 26th-largest commercial partner, and the two countries’ commerce has grown to $24.5 billion, up from $12.7 billion in 1997. In terms of regional trade, the European Union is Israel’s most important export market.

Canada-Israel Free Trade Agreement

Canada and Israel agreed in 2014 to upgrade the Canada-Israel Free Trade Agreement (CIFTA), a goods-only agreement that has been in effect since January 1, 1997. Canada and Israel revised four chapters and added nine new chapters to CIFTA during two periods of discussions in 2014-2015 and 2017-2018.

The updated CIFTA promotes Canadian companies’ access to the Israeli market by lowering and eliminating duties on agricultural, agri-food, and fishery products. The modernized CIFTA signals the importance of inclusive trade and ensuring that the benefits and opportunities that flow from trade and investment are more widely shared by adding new chapters on Trade and Gender and Small and Medium-sized Enterprises, as well as new provisions on responsible business conduct and new labor and environmental protections.

Canada’s two-way merchandise trade with Israel has more than tripled since CIFTA was implemented over two decades ago, reaching approximately $1.8 billion in 2021. In 2020, the value of the two-way services trade was $412 million.

Israel-European Union Free Trade Zone Agreement 

A Free Trade Agreement was struck between Israel and the European Union countries in July 1975. Israel gradually reduced its import taxes on industrial imports from the EU market under this agreement until they were removed in January 1989.

Only products originating in EU nations, directly imported into Israel from EU countries, and accompanied by a EUR1 certificate of origin or an exporter’s certificate of the declaration are eligible for customs savings.

An agreement was concluded in November 1995 that reinforced the foundation of commercial relations with the European Economic Community. Its import effects are notably manifested in the removal of tariffs on agricultural items originating in EU countries.

Israel-USA Free Trade Zone Agreement (FTA)

Israel and the United States agreed to establish a free trade zone in April 1985. Import taxes between the two countries were steadily reduced under the agreement. Import tariffs were abolished altogether on January 1, 1995 (assurance charges – BITHA – are imposed on food and agricultural imports from the United States). Customs savings are only available for products that originate in the United States, are directly imported from the United States, and are accompanied by a FORM A certificate of origin.

Israel-EFTA Free Trade Zone Agreement

Israel and the EFTA countries signed a free trade zone agreement on January 1, 1993, as a result of which import taxes on industrial products were immediately abolished. Only products from EFTA nations, directly imported into Israel from EFTA countries, and accompanied by a EUR1 certificate of origin or an exporter’s declaration are eligible for customs savings.

The following nations are part of the agreement: Iceland, Liechtenstein, Norway, and Switzerland.

Israel-Turkey

The Israeli-Turkish trade agreement went into effect on May 1, 1997. Industrial imports that comply with origin laws and are not listed in Appendices 1, 2, and 3 of the agreement were granted an instant exemption under the agreement. Discounts were given on these sensitive products based on a reductions table that was abolished in 2002.

The origin regulations outlined in the agreement are identical to those outlined in the agreement between Israel and the EU countries.

The consignment must be transported with a EUR-1 certificate of origin or a statement supplied by the exporter to be eligible for the benefits outlined in the agreement.

Israel- Czech Republic and the Republic of Slovakia

On January 1, 1997, Israel and the Czech Republic signed a trade deal, and a similar agreement was reached with the Republic of Slovakia.

An instant exemption was given under the agreement for industrial imports that complied with the origin restrictions. Discounts were given on sensitive products based on a reductions table that was abolished in 2002.

The origin regulations outlined in the agreement are identical to those outlined in the agreement between Israel and the EU countries.

The consignment must be transported with a EUR-1 certificate of origin or a statement supplied by the exporter to be eligible for the benefits outlined in the agreement.

Israel- Poland

The third agreement, with Poland, was signed on January 1, 1998. Similar accords with the Czech Republic and the Republic of Slovakia preceded this.

Industrial imports classified in Chapters 25 to 97 of the Customs Tariff were exempted under the agreement, except for a few articles listed in Appendix 1 of the agreement. Discounts were given on these sensitive products based on a reductions table that was abolished in 2002.

The origin regulations outlined in the agreement are identical to those outlined in the agreement between Israel and the EU countries.