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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 the EU’s 24th biggest trade partner, representing 0.9% of the EU’s total trade in goods in 2020. It is also considered to be one of the most important partners for the EU in the Mediterranean area.
  • The EU is Israel’s biggest trade partner, accounting for 29.3% of its trade in goods in 2020. 34.4% of Israel’s imports came from the EU and 21.9% of the country’s exports came from the EU.
  • Total trade in goods between the EU and Israel in 2020 amounted to €31.0 billion. The EU’s imports from Israel were worth €11.5 billion and were led by chemicals (€5.1 billion, 44.3%), machinery and transport equipment (€2.3 billion, 20%) and other manufactures (€1.3 billion, 11.3%). The EU’s exports to Israel amounted to €19.5 billion and were dominated by machinery and transport equipment (€7.7 billion, 39.5%), chemicals (€4.0 billion, 20.5%), agriculture and raw materials (€2.4 billion, 12.3%), and other manufactures (€2.0 billion, 10.2%).
  • Two-way trade in services between the EU and Israel amounted to €15.9 billion in 2019. EU imports of services represented €6.6 billion while exports accounted for €9.3 billion.

EU-Israel: Trade in goods

Trade in goods 2018-2020, € billions
Year EU imports EU exports Balance
2018 12.5 19.4 7.0
2019 13.1 20.1 7.0
2020 11.5 19.5 8.0

EU-Israel: Trade in services

Trade in services 2017-2019, € billions
Year EU imports EU exports Balance
2017 4.9 6.2 1.3
2018 5.7 7.7 2.0
2019 6.6 9.3 2.7

EU-Israel: Foreign direct investment

Foreign direct investment 2019, € billions
Year Inward stocks Outward stocks Balance
2019 58.2 42.8 -15.4

Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States.

Date of retrieval: 12/04/2021

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