Canada and Israel have recently signed a free trade agreement (FTA), which eliminates tariffs on a wide range of goods and services. The Canada-Israel FTA came into effect on September 1, 2019, and is expected to increase the bilateral trade between the two countries significantly.
Under this agreement, over 90% of Canadian exports to Israel will be duty-free immediately, and the remaining tariffs will be eliminated over three to five years. Similarly, Israeli products will have more significant access to the Canadian market, with up to 99% of Israeli exports to Canada being duty-free instantly.
The agreement covers several sectors, including agriculture, food and beverages, health, information and communication technology, and services. The Canadian government has estimated that the FTA will boost exports to Israel by up to 20%, providing Canadian businesses with increased market access and growth opportunities.
For example, Canadian agricultural exporters will benefit significantly from the elimination of tariffs on wheat, canola, and barley. This will provide a competitive advantage to Canadian farmers and exporters who will be able to sell their products at lower prices and higher margins.
On the other hand, Israeli exporters will now have access to the Canadian market for their products, including pharmaceuticals, technology, and diamonds. The Israeli pharmaceutical industry, in particular, will benefit from the elimination of Canadian tariffs, which, in some cases, are as high as 6%.
The FTA between Canada and Israel is a significant step forward for both countries and will increase their economic ties. Canada and Israel share similar values of innovation, entrepreneurship, and technological advancement, which make them natural partners.
The Canada-Israel FTA will also help Canada diversify its trade relationships beyond traditional partners like the United States and Europe. With the elimination of tariffs, Canadian businesses will now have an attractive alternative market in Israel, a country with a thriving technology sector and a robust economy.
Overall, the Canada-Israel FTA is an essential agreement that will benefit both countries, providing increased market access and opportunities for growth for Canadian and Israeli businesses. The agreement is a testament to the strong and enduring relationship between Canada and Israel and showcases the commitment of both countries to free and fair trade.