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Israel

Israel

The legal basis for EU trade relations with Israel is the EU-Israel Association Agreement, which entered into force in June 2000. The aim of this agreement is to provide an appropriate framework for political dialogue and economic cooperation between the EU and Israel.

Trade picture

  • Israel is an important trading partner for the EU in the Mediterranean area, and the EU is the first trading partner for Israel with total trade amounting to approximately €34,3 billion in 2016.
  • EU exports of goods to Israel amounted to €21,1 billion in 2016. They are dominated by machinery and transport equipment (€9,6 billion, 45,4%), chemicals (€3,4 billion, 16,2%), and other manufactured goods (€3,1 billion, 15,0%).
  • EU imports from Israel amounted to €13,2 billion in 2016. They are dominated by chemicals (€5,1 billion, 39,2%), machinery and transport equipment (€2,8 billion, 21,3%), as well as other manufactured goods (€1,9 billion, 15,0%).

EU-Israel: Trade in goods

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 13.3 17.0 3.7
2015 13.4 18.9 5.6
2016 13.2 21.1 7.9

EU-Israel: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 4.3 4.6 0.2
2014 3.9 6.2 2.3
2015 4.6 7.3 2.7

EU-Israel: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 45.2 16.5 -28.7

Date of retrieval: 15/02/2017

More statistics on Israel

EU and Israel

Negotiations to open up additional agricultural trade between the EU and Israel were  concluded in 2008 and the agreement is in force since January 2010.

Israel in Euromed

Israel is one of the partners of the Euro-Mediterranean Partnership (Euromed).

Euromed is one of the key initiatives of the European Neighbourhood Policy, through which the EU offers its neighbours a privileged relationship, building upon a mutual commitment to common values (including democracy and human rights, rule of law, good governance, market economy principles and sustainable development).

Euromed is an essential component in the pursuit of greater economic integration in the Mediterranean region, including among Mediterranean partners themselves.

More information on the Euro-Mediterranean partnership

The pan-Euro-Mediterranean cumulation and the PEM Convention on rules of origin

The pan-Euro-Mediterranean cumulation system of origin was created in 2005. It brings together the EU, Israel, and other partners in Europe and the Mediterranean to support regional integration by creating a common system of rules of origin. Rules of origin are the technical criteria which determine whether a specific product qualifies for duty free or other preferential access under a given trade agreement.

Cumulation of origin means a product coming from one partner country can be processed or added to a product of a second partner country and still be considered an “originating product” of that second partner country for the purposes of a particular trade agreement.

The pan-Euro-Mediterranean system allows for diagonal cumulation (i.e. cumulation between two or more countries) between the EU, EFTA States, Turkey, the Western Balkans, the Faroe Islands, and any countries which signed the Barcelona Declaration of 1995. The system was originally based on a network of Free Trade Agreements having identical origin protocols.

These individual origin protocols are being progressively replaced by a reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), which was established in 2011 to provide a more unified framework for origin protocols. Israel signed the Regional Convention on 10 October 2013, the internal ratification process has been completed.

More information on Mediterranean preferential Rules of Origin

Trading with Israel