In recent years, the State of Israel has signed a series of trade agreements. The importer of goods from a country with which Israel has signed a trade agreement must verify what „rules of origin“ apply – which determine whether the product manufactured in that country can benefit from the benefits mentioned in the specific trade agreement and what documents are needed to obtain the benefit provided by the agreement. You can continue to use EU materials or processing when exporting to Israel. The United Kingdom and Israel must have met the requirements of the origin protocol. You must also ensure that the work or transformation you are doing in the UK goes beyond the minimum operations mentioned in the agreement and that the other relevant conditions are met. In 2013, the EU adopted a binding directive which will require the Israeli government to declare, in future agreements with the EU, that settlements in the West Bank, including East Jerusalem, are located outside the State of Israel. The directive partly implements an earlier statement by EU foreign ministers  that „all agreements between the State of Israel and the EU must clearly and explicitly express their non-performance in the territories occupied by Israel in 1967.“  The guidelines prohibit the granting of EU grants, financing, prizes or scholarships to Israeli institutions, unless a transaction exclusion clause is included. Israeli institutions and institutions that are on the Green Line before 1967 will not be automatically eligible. The European directive is similar to the one signed in 1972 between the United States and Israel, in which Israel pledged, in exchange for scientific funds, to limit projects within the 1967 borders.  The guidelines do not restrict subsidies from EU Member States. Before the guidelines were published, Israel experienced a political and media storm.  The media has suggested that Israel will act against the EU. Maja Kocijancic, spokeswoman for Catherine Ashton, the EU`s head of foreign policy, said: „The EU is concerned by reports in the Israeli media that the Israeli defence minister has announced a series of restrictions on EU activities to support the Palestinian people.
We have not received any official notification from the Israeli authorities. Our delegations on the ground are trying to provide urgent clarification.  Under the Euro-Mediterranean agreement, the EU and Israel have free trade in industrial products. The two parties have mutually granted each other significant trade concessions for certain agricultural products in the form of tariff reductions or eliminations, either within quotas or for unlimited quantities. THE EFTA states signed a free trade agreement with Israel on 17 September 1992 in Geneva, Switzerland. The agreement came into force on January 1, 1993. Bilateral agricultural agreements were modernized and extended in Geneva on 22 November 2018. These new agreements will enter into force and replace existing agreements after ratification by the respective EFTA states and Israel. For more information on the new agreements, visit the page below. If you have questions about trade from January 1, 2021, contact the International Trade Division (ITD).
Consultations are the fundamental mechanism for resolving disputes between the partners of the free trade agreement. The agreement implies that the parties strive to resolve any differences between them regarding the interpretation and implementation of the agreement, through direct consultations and, if necessary, consultations within the joint committee.