BRUSSELS (EJP)---The European Union and Israel have signed an agricultural agreement under which 80 percent of Israeli exported fresh products are totally exempt from all taxes and leaves.
The agreement was signed last week by Israel’s ambassador to the European Union, Ran Curiel, and his Swedish counterpart, Christian Danielsson. Sweden currently holds the rotating EU presidency.
The new agreement ratified in Brussels updates the original agricultural agreement signed in the 1970's as a result of lengthy negotiations led by Israel's Ministry of Agriculture and the Ministry of Industry, Trade and Labor.
Access to the markets of both sides has been greatly improved. In the processed agricultural products sector, over 95% of the products will be exempt from all taxes or levies. Considerable liberalization was undertaken in regards to all areas of fresh produce and approximately 80% will be exempt from all customs restrictions.
Each year, around one billion euros of Israeli agricultural and processed food products are exported to the EU.
Europe is Israel's most important trading partner in the agricultural field. More than 25% of Israel's agricultural products and more than 75% of its total fresh agricultural products are exported to European countries.
During the signing ceremony at the EU Council building, Israel’s ambassador Ran Curiel noted that 60 % of the Israeli agricultural exports to Europe come from the Arava region and Negev desert, in the South of the country, where rainfall does not exceed 50 millimeters per year.
Israel uses the world's leading technologies in the intensive production of fruits, vegetables and flowers.
Most of Israel's agricultural activities are conducted in periphery and desert areas. Both Israel and the EU view the existence of active and modern rural areas as essential as they are used to preserve open spaces and prevent rapid urbanization processes.
The Israeli ambassador also stressed that oranges and flowers are not anymore the products topping Israel’s exports. The country offers to the European consumer a broad and diverse range of fresh and processed food products.
The EU-Israel agreement is one element in the wide range of existing agreements between the two parties, including the Israel-EU Association Agreement, the Israeli-EU Action Plan as part of the European Neighborhood Policy (ENP), the Euro-Mediterranean partnership, as well as Israel's participation in several European programs and agencies, such as the Seventh Framework Programme for Research and Technological Development.
Another agreement on “mutual recognition of industrial products and conformity assessment” is to be signed within a few weeks.
In 2008, Israeli exports to Europe reached close to 18 billion dollars while exports from the EU to Israel reached 22,5 billion dollars.
This year marks 50 years since the EU and Israel established diplomatic relations.