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Brazil Israel Free Trade Agreement

The free trade agreement between MERCOSUR and Israel will enter into force on 23 December 2009 between Uruguay and Israel. In March 2010, Brazil definitively approved the free trade agreement between Israel and MERCOSUR. A few days later, on 24 March 2010, the agreement entered into force for Paraguay. * Cynthia Kramer is a Brazilian lawyer and business advisor with over 15 years of experience, PHd in International Business from the University of São Paulo. She has worked for the Brazilian government at the World Trade Organization in Geneva, coordinated litigation at the Ministry of Foreign Affairs in Brasilia and embassy in Washington DC/USA. MercosUR Common Market Council Decision No 22/05 approved the initiative to negotiate a free trade agreement. The first round of negotiations took place in February 2006. The first, third and fifth rounds of negotiations took place in Jerusalem, Israel. The second and fourth rounds were held in Buenos Aires, Argentina. The fifth round of negotiations was held in Jerusalem, Israel, from 20 to 23 November 2006. On 18 December 2007, MERCOSUR and Israel signed a free trade agreement. On 8 December 2005, MERCOSUR (composed of Argentina, Brazil, Paraguay and Uruguay) signed a framework agreement in Montevideo, Uruguay, aimed at creating the conditions and mechanisms for negotiating a free trade agreement.

Some might point to the currency`s impact on the 2016 figures, but it`s time for Israeli companies to take a closer look at the market mercosur represents for its products and try to use the preferences granted by the FTA to increase the flow of trade between Israel and mercosur. Mercosur companies should also not neglect the opportunities offered by Israel to their businesses and take advantage of the free trade agreement to increase trade and increase profits. In addition, the Free Trade Agreement establishes equal conditions applicable to products manufactured domesticated and products imported from the territory of the signatory party (Israel or Mercosur). This is called the principle of infätization, which was first agreed in 1947 in the General Agreement on Tariffs and Trade (GATT). The practical effect of this obligation is the possibility of demanding equal treatment/competition for products imported from Mercosur or Israel. The Free Trade Agreement contains other provisions concerning safeguard measures, trade healing measures, sanitary and phytosanitary measures, but generally speaking they concern all the obligations defined by the agreements covered by the World Trade Organisation (WTO). Despite the efforts made by governments to conclude this free trade agreement, Mercosur 1 statistics show that the free trade agreement has not contributed significantly to the increase in trade flows between Mercosur and Israel, which means that companies do not use tariff preferences and other preferences derived from them. In December 2007, Israel signed a free trade agreement (FTA) with the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay). This was the first agreement of its kind signed by Mercosur. This free trade agreement entered into force in April 2010 and established, among other duties and obligations, a list of products whose import duties were to be reduced to zero immediately or within 4.8 or 10 years. This means that by the end of 2020, all products listed in the relevant concession plan will be exported free of charge from Mercosur to Israel or from Israel to Mercosur. To benefit from this tax advantage, the product must originate in Mercosur or Israel, and the company requests its government to issue a certificate of origin which must be accompanied by the product during customs clearance before the customs authorities of the importing country for the tariff preference.

New trade agreements between Brazil and Israel are being developed, with new agreements attributable to Brazil`s scientific and defense technologies. In late February, the Brazilian Senate`s website announced that Israel would propose guidelines and technologies to help with water sustainability, with a particular focus on desalination technologies. . . .