The free trade agreements of Israel represent Israel's cooperation in multinational trade pacts and participation in the world economy. Israel's first free trade agreement was signed in 1985 with the United States. Since then, Israel has signed 16 free trade agreements (free trade agreements) with 48 countries and economic blocks such as the European Union, the European Free Trade Association and Mercosur.
Israel is a General Agreement on Tariffs and Trade (GATT) member since 5 July 1962, member of the World Trade Organization since 21 April 1995 as it succussed the GATT, and from 7 September 2010 member of the OECD.
Israel signed the United Nations Convention on Contracts for the International Sale of Goods on 22 January 2002, and Israel is also member of the United Nations Commission on International Trade Law for the years 2004 to 2028.
Free trade agreements summary table Agreement name Countries/blocs Start of negotiations Date of signature Approval and entry into force Status Updates - - - Discussions October 2022 - - Negotiations Canada–Israel Free Trade Agreement 1994 31 July 1996 1 January 1997 In force 2019 September 2016 - - Negotiations Colombia–Israel Free Trade Agreement March 2012 30 September 2013 11 August 2020 In force Costa Rica-Israel Free Trade Agreement 29 March 2023 8 December 2025 - Signed April 2018 - - Negotiations EFTA –Israel Free Trade Agreement (European Free Trade Association) June 1991 17 September 1992 1 January 1993 In force 2018 European Union–Israel Association Agreement December 1993 20 November 1995 1 June 2000 In force 20102013 2 May 2023 - - Negotiations Guatemala–Israel Free Trade Agreement 29 August 2019 8 September 2022 1 March 2024 In force May 2010 - - Negotiations 22 November 2022 - - Negotiations Israel–Jordan Free Trade Agreement 1994 26 October 1994 25 October 1995 In force 2004 Israel–Mercosur Free Trade Agreement June 2005 18 December 2007 9 September 2011 In force 2012 Israel–Mexico Free Trade Agreement April 1998 10 April 2000 1 July 2000 In force 2008 8 August 2023 - - Negotiations Israel–Panama Free Trade Agreement 26 November 2015 8 May 2018 1 January 2020 In force 11 September 2024 - - Negotiations Israel–South Korea Free Trade Agreement May 2016 12 May 2021 1 January 2023 In force - - - Discussions Israel–Turkey Free Trade Agreement 1994 14 March 1996 1 May 1997 In force 20062007 Israel–Ukraine Free Trade Agreement 2013 21 January 2019 1 January 2021 In force Israel-UAE Free Trade Agreement November 2021 31 May 2022 1 April 2023 In force Israel–United Kingdom Trade and Partnership Agreement EU–Israel Free Trade Agreement (before Brexit) 18 February 2019 1 January 2021 In force Israel–United States Free Trade AgreementFree Trade Agreement gov.il 1 January 1984 22 April 1985 1 September 1985 In force 20042017 2022 Israel–Vietnam Free Trade Agreement 2016 24 July 2023 17 November 2024 In force
Free Trade Agreements in force The current active bilateral and multilateral Free Trade Agreements of Israel with countries and trade blocks.
Israel – United States Free Trade Agreement
Israel and the United States signed the Israel–United States Free Trade Agreement, which was the first United States free trade agreement with a country outside of North America, and the first free trade agreement of Israel. The free trade agreement came into force on 1 September 1985. To be party to the free trade agreement, goods must be a product of Israel or the United States or have had a significant portion produced in Israel or the United States. The negotiations for the FTA began on 1 January 1984 after discussions between the former US president Ronald Reagan and the former Israeli prime minister Yitzhak Shamir in November 1983. The FTA was signed by Ronald Reagan into law the Trade and Tariff Act of 1984 which paved the way for FTA between Israel and the United States. The FTA was signed on April 22, 1985, and came into force on 1 September 1985. The FTA reduced tariffs on different products in few steps until 1995.
The free trade agreement of 1985 was not including agricultural products, and was decided in article 6 of the free trade agreement that the sector of agricultural products isn't included or will come separately in other agreement. In 2004, the agreement was extended to agricultural products.Sahar Hutz Agreements gov.ilSahar Hutz Agreements gov.ilSahar Hutz Agreements gov.ilSahar Hutz Agreements gov.ilSahar Hutz Agreements gov.il
Mutual recognition agreement on telecommunications equipment was signed in 2004,Mutual recognition agreement gov.il and a joint committee decided to make some changes to the Annex 3 of the Israel – United States Free Trade Agreement (1985) regarding the documentation of Rules of Origin.Sahar Hutz Agreements gov.il Additional extension to the Agricultural Agreement (2004) was made in 2022.
The United States and Israel are also party to the Qualified Industrial Zone agreement (QIZ agreement), which serves to promote co-production and economic cooperation between Israel and Egypt. The QIZ agreement was signed on December 14, 2004, in Cairo between Egypt, Israel, and the United States. The QIZ agreement came into force in 2005.Sahar Hutz Agreements gov.ilSahar Hutz Agreements gov.ilSahar Hutz Agreements gov.il Israel – United States Free Trade Agreement and extensionsAgreement nameAgreement textetc.Israel – United States Free Trade Agreement (1985)in English by the Israeli Ministry of Economyin Hebrew by the Israeli Ministry of Economyin English by the Office of the United States Trade RepresentativeIsrael – United States Agricultural Agreement (2004) as an extension to the Free Trade Agreement (1985)in English by the Israeli Ministry of EconomyMutual recognition agreement on telecommunications equipment (2004)in English by the Israeli Ministry of EconomyExtension to the Agricultural Agreement of 2004 (2022)in English by the Government of United States
European Free Trade Association – Israel Free Trade Agreement
Israel and the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland and Liechtenstein, negotiated free trade agreement in June 1991, signed the agreement in 1992 which came into force a year later on 1 January 1993.Sahar Hutz Agreements gov.il The free trade agreement originally included trade of goods, rules of origin, and intellectual property rights, and on 22 November 2018 was updated to extend to agricultural products. The extension came into force on 1 August 2021.Sahar Hutz Agreements gov.ilIsrael Switzerland Agreement gov.ilSahar Hutz Agreements gov.ilIsrael Norway agreement gov.il Israel – EFTA Trade Agreement and extensionsAgreement nameAgreement textetc.EFTA – Israel Free Trade Agreement (1993)in English by the Israeli Ministry of Economyin Hebrew by the Israeli Ministry of Economyin English by EFTAEFTA – Israel Agreement on Agricultural (2018)in English between Israel and Icelandin English between Israel and Norwayin English between Israel and Switzerland
Israel - Jordan Free Trade Agreement
The free trade agreement between Israel and Jordan was signed alongside wide the peace treaty on 26 October 1994, and one year after on 25 October 1995 the agreement came into force. The agreement of 1995 includes rules of origin and goods that are 100%, 50% or 30% duty-free.Sahar Hutz Agreements gov.il The free trade agreement was updated on 23 December 2004.Updated protocol gov.il Israel – Jordan Trade Agreement and extensionsAgreement nameAgreement textetc.Israel - Jordan Free Trade Agreement (1995)in English by the Israeli Ministry of Economyin Hebrew by the Israeli Ministry of EconomyIsrael - Jordan Free Trade Agreement extension (2004)in English by the Israeli Ministry of Economyin Hebrew by the Israeli Ministry of Economy
European Union – Israel Free Trade Agreement
The free trade agreement between Israel and the European Union began and are part of the European Union Association Agreement, Euro-Mediterranean Association Agreement or the Euro-Mediterranean Agreement. The negotiations between Israel and the European Community began in December 1993, signed on 20 November 1995 and came into force on 1 June 2000. The original free trade agreement included clauses on rules of origin, duties, service and industrial trades and co-operations, tourism, and transport. Negotiations on additional agricultural trade agreement between the EU and Israel began in 2008, signed on 20 October 2009, and came into force in January 2010.Sahar Hutz Agreements gov.il
On 20 November 2012 Israel and the EU signed the Agreement on Conformity Assessment and Acceptance of Industrial, giving good manufacturing practice exemption to the Israeli medical industry and easing the export of medical goods from Israel to the European Union. The agreement came into force in 2013.Euro ACAA gov.il
In 2002 Israel began the Operation Defensive Shield due to the murder of approximately 730 Israeli civilians and tourists in different terror attacks during the Second Intifada. Some politicians of the European Parliament called to suspend the Association Agreement, as the EU member state were 15 during 2002. The Spanish Foreign Minister Josep Pique haven't ruled out such scenario. Move that was unlikely as other countries such as Germany, UK, Denmark, and the Netherlands were against it.
After the 7th October massacre in 2023 made by Hamas and other Palestinian militant groups and the start of the ground operation, Spain, Ireland, and Belgium questioned the agreements with Israel. The prime minister of Belgium Alexander De Croo called for sanctions against Israel, The prime minister of Ireland even considered to unilaterally suspend trade with Israel, The Spanish Prime Minister Pedro Sanchez together with Ireland tried to push other EU members to suspend the free trade agreement with Israel, and Josep Borrell the Spanish head of the European Union's foreign policy pushed for suspension of relations with Israel. But most EU countries as, Finland, Germany, Austria, the Czech Republic, Hungary, Denmark, the Netherlands, Italy and Greece were against such actions from Josep Borrell, Spain, Ireland, and Belgium against Israel. Israel – European Union Trade Agreement and extensionsAgreement nameAgreement textetc.European Union – Israel Free Trade Agreement (1995)in English by the Israeli Ministry of Economyin Hebrew by the Israeli Ministry of Economyin English by the European UnionEuropean Union – Israel Agricultural Trade Agreement (2010)in English by the Israeli Ministry of Economyin Hebrew by the Israeli Ministry of Economyin English by the European UnionAgreement on Conformity Assessment and Acceptance of Industrial - ACAA Products (2013)in English by the Israeli Ministry of Economyin Hebrew by the Israeli Ministry of Economyin English by the European Union
Israel - Turkey Free Trade Agreement
Israel and Turkey negotiated free trade agreement since 1994, signed a free trade agreement on 14 March 1996, which came into force on 1 May 1997.The free trade agreement covers topics including duties on agriculture, industry and services to right of origin.Sahar Hutz Agreements gov.il The free trade agreement was updated in 2006 and 2007.Sahar Hutz Agreements gov.il
After the 7th October massacre in 2023 made by Hamas and other Palestinians and the start of the ground operation, Turkey decided to stop exports to Israel on may the third 2024 ruled by the Turkish President Recep Tayyip Erdogan. In response, the Israeli Finance Minister Bezalel Smotrich called to abolish the free trade agreement with Turkey and also to impose 100% tariff on import from Turkey. Local Turkish media claimed that products from Turkey arrive to Israel via the Palestinian Authority as export from Turkey to the Palestinian Authority was raised to 526% after the ban.
Canada - Israel Free Trade Agreement