RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG65/4
WT/REG66/4
20 June 2000
(00-2465)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN ISRAEL AND POLAND;
FREE TRADE AGREEMENT BETWEEN ISRAEL AND SLOVENIA
Questions and Replies
This document reproduces questions addressed to the Parties and the responses submitted.
The questions and replies set out below are organized in accordance with document WT/REG65/3 and
WT/REG66/3.
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I. BACKGROUND INFORMATION ON THE AGREEMENT
2. Type of Agreement
Please confirm that the implementation  period for no items exceeds 10 years.
The Israel-Poland FTA provides for immediate implementation, upon entry into force of the
Agreement, for the vast majority of the products.  For the rest of the products, a gradual process of
implementation has been established and is scheduled to be completed by 1 January 2002.
The Israel-Slovenia FTA also provides for immediate implementation, upon entry into force
of the Agreement, for the vast majority of the products.  For the rest of the products, a gradual processof implementation has been established, and is scheduled to be completed by 1 September 2000.
3. Coverage &
4. Trade data
The Parties indicate that Harmonized System (HS) Chapters 25-97 and "substantially
all trade" in HS Chapters 1-24 are covered.  Please provide additional information on the
products covered by the agreement, including the treatment of agricultural products and duty
treatment of groups of products.  It is not clear that this agreement meets the "substantially all
the trade" threshold.
Please provide statistical data showing th e percentage of trade volumes subject to
zero duty and no restrictive regulations of commerce, as well as the percentage of tariff lines
subject to zero duties and no restrictive regulations of commerce.
The data provided by the Parties does not differentiate between duty-free and lesser
levels of preferences.  It also appears that th e share of trade covered has fallen over time.  Why?
We would appreciate trade and tariffs statistics on Intra-FTA trade.WT/REG65/4
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For what percentage of FTA trade between the Parties (for each Party):
- has the duties been eliminated;
- has other regulations of commerce been eliminated;- is concessions given or excluded?
We would be grateful for advice on what percentage of trade between the Parties
(for each Party) is accounted for by each list of products as exempt from the general provisions.
We would be grateful for advice on the pe rcentage of trade (by product line) covered by
the agreement and advice on specific agricultural product exclusions.
For further details on trade data and agricultural imports please refer to the attached tables.
As to detailed treatment for each product please refer to the relevant annexes in each
agreement.  Moreover, the Agreements and their annexes are clear on the treatment each product is toreceive, including on tariff-rate quotas (TRQs) treatment on a number of agricultural products.
It is the view of the Parties to these Agreements that tariff line information does not constitute
part of the conformity exercise of Article XXIV of GATT 1994.
Imports of Israel from Poland, 1995-1998,
by different duty levels according to the Agreement
1995
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 2,898,398 91.5 12.6 19,797,729 100.0 22,696,127 98.8
Less than MFN 188,100 5.9 0.8 0 0.0 188,100 0.8
MFN 81,516 2.6 0.4 0 0.0 81,516 0.4
Total 3,168,014 100.0 13.8 19,797,729 100.0 22,965,743 100.0
1996
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 890,660 65.7 5.3 15,324,626 100.0 16,215,286 97.2
Less than MFN 107,117 7.9 0.6 0 0.0 107,117 0.6
MFN 357,445 26.4 2.1 0 0.0 357,445 2.1
Total 1,355,222 100.0 8.1 15,324,626 100.0 16,679,848 100.0WT/REG65/4
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1997
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 1,131,618 50.0 6.5 15,084,852 100.0 16,216,470 93.5
Less than MFN 469,950 20.8 2.7 0 0.0 469,950 2.7
MFN 662,913 29.3 3.8 0 0.0 662,913 3.8
Total 2,264,481 100.0 13.1 15,084,852 100.0 17,349,333 100.0
1998
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 4,025,853 86.2 13.8 24,448,591 100.0 28,474,444 97.8
Less than MFN 167,642 3.6 0.6 0 0.0 167,642 0.6
MFN 474,416 10.2 1.6 0 0.0 474,416 1.6
Total 4,667,911 100.0 16.0 24,448,591 100.0 29,116,502 100.0
Imports of Poland from Israel, 1998-1999,
by different duty levels according to the Agreement
1998
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 17,279,877 54.44 12.31 108,543,184 100 125,823,061 89.68
Less than MFN 11,080,739 34.91 7.89 0 0 11,080,739 7.899
MFN 3,373,621 10.6 2.4 0 0 3.373.621 2.4
Total 31,734,236 100.0 22.62 108,543,184 100.0 140,277,420 100.0
1999
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 15,095,314 51.28 9.32 132,462,822 100.0 147,558,136 91.14
Less than MFN 11,296,537 38.37 6.97 0 0 11,296,537 6.97
MFN 3,040,251 10.32 1.89 0 0.0 3,040,251 1.89
Total 29,432,105 100.0 18.17 132, 462,822 100.0 16,894,924 100.0WT/REG65/4
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Imports of Israel from Slovenia, 1995-1998,
by different duty levels according to the Agreement
1995
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 195,524 46.9 3.1 5,914,611 100.0 6,110,135 96.5
Less than MFN 140,608 33.7 2.2 0  140,608 2.2
MFN 80,564 19.3 1.3 0  80,564 1.3
Total 416,696 100.0 6.6 5,914,611 100.0 6,331,307 100.0
1996
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 57,451 33.9 0.6 8,969,615 100.0 9,027,066 98.8
Less than MFN 0 0.0  0 0.0 0 0.0
MFN 112,154 66.1 1.2 0 0.0 112,154 1.2
Total 169,605 100.0 1.9 8,969,615 100.0 9,139,220 100.0
1997
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 49,311 43.9 0.6 8,442,779 100.0 8,492,090 99.3
Less than MFN 0 0.0  0 0.0 0 0.0
MFN 63,067 56.1 0.7 0 0.0 63,067 0.7
Total 112,378 100.0 1.3 8,442,779 100.0 8,555,157 100.0
1998
Agricultural products Industrial products Total imports
Duty Rate US$ % % of total
tradeUS$ % 1,000 US$ %
0% 39,861 39.7 0.4 9,731,528 100.0 9,771,389 99.4
Less than MFN 0 0.0  0 0.0 0 0.0
MFN 60,654 60.3 0.6 0 0.0 60,654 0.6
Total 100,515 100.0 1.0 9,731,528 100.0 9,832,043 100.0WT/REG65/4
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Imports of Slovenia from Israel, 1996-1998
Trade by Product Groups
(US$)
1996 % 1997 % 1998 %
Industrial products (all) 47,509,164 98.0 70,938,894 98.3 34,758,086 97.7
  Annex 1 0 0.0 0 0.0 0 0.0
  Protocol 2 Annex A 878,817 1.9 1,148,398 1.6 773,918 2.1
  Not covered by FTA 68,338 0.1 78,734 0.1 56,179 0.2
Agricultural products (total) 947,155 2.0 1,227,132 1.7 830,097 2.3
Total 48,456,319 100.0 72,166,026 100.0 35,588,183 100.0
Total
importZero
customs dutyBetween
zero and MFNMFN
Year USD % % % %
1996 48.456.319 100 47,509,164 98.0 878,817 1.9 68,338 0.1
1997 72,166,026 100 70,938,894 98.3 1,148,398 1.6 78,734 0.2
1998 35,588,183 100 34,758,086 97.7 773,918 2.1 56,179 0.2
II. TRADE PROVISIONS
1. Import Restrictions &
2. Export Restrictions
Which products are subject to TRQs?  Wh at amounts are provided?  Do amounts
increase  from year to year?  Is this tonnage additional to the amounts agreed in the
Uruguay Round?
As to detailed treatment for each product please refer to the relevant annexes in each
agreement.  Moreover, the Agreements and their annexes are clear on the treatment each product is to
receive, including on tariff-rate quotas (TRQs) treatment on a number of agricultural products.  The
amounts of TRQs do not increase from year to year and they are specified in the relevant Annexes.
This tonnage is additional to the amounts agreed in the Uruguay Round.
Do the Parties maintain quantitative restrictions between or among them?  Is so, please
identify the products and describe the restrictions.
Annexes II & III in the Poland-Israel FTA and Annexes II, III & IV in the Slovenia-Israel
FTA, list the products for which quantitative restrictions may be maintained.
3. Rules of Origin
Please confirm that the agreements use the European Cumulation regime.  Please
identify all countries whose products benefit from the European Cumulation scheme pursuant
to this agreement.
In order to facilitate trade with other members who are Parties to the European cumulation
scheme, the Pan-European specific rules of origin has been adopted in both Agreements.WT/REG65/4
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The Parties to both Agreements have declared their readiness to make the necessary
amendments to the Protocol on Rules of Origin in order to join the Pan European Cumulation
scheme1.  These amendments will be done when the European Union (EU) agrees to implement the
necessary modifications in its agreement with Israel in order to allow cumulation of origin.
5. Safeguards
Is there a bilateral safeguard mechanism?  On what basis and to whom are bilateral
safeguard measures applied?  Have safeguards measures been implemented under the
agreement?  Does this agreement provide for any special conditions or preferential treatment
between the Parties on global safeguards?
The bilateral safeguard mechanism is regulated under Articles 12, 26 and 30 in the
Poland-Israel FTA and Articles 25 and 29 in the Slovenia-Israel FTA.
Safeguards measures may be applied on the basis detailed in articles of the respective
agreements.  To date, no safeguard measures have been implemented under either agreement.
The Agreements provide for the possibility of exempting the other Party from global
safeguard measure (Article 26.2 in the Poland-Is rael FTA and Article 25.2 in the Slovenia-Israel
FTA).  When in view of the importing Party, the importation of a product from the other party is not
substantial cause of a serious injury or threat thereof, the product of the Party shall be exempted fromany safeguard measures that may be imposed with  respect to imports of that product from third
countries.
Will balance-of-payments (BOP) measures be applied in a non-discriminatory manner
and without prejudice to the interests of non-parties to this agreement?
BOP measures, in case needed, will be ap plied in accordance with rules laid down in
WTO Agreements.
7. Subsidies and State-Aid
Please provide additional information on th e operation of the provisions on subsidies
and State-aid.  Have they been used?
The provisions on state-aid have not been used.
8. Sector-Specific Provisions
Please describe the exceptional treatment of agricultural products under the agreement.
Protocol 2 of both Agreements includes two positive lists of agricultural products for which
concessions have been given.
9. Other
(ii) State Monopolies
                                                     
1 Poland-Israel FTA in the Record of Understanding and Slovenia-Israel FTA in the Joint Declarations.WT/REG65/4
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We would like to request advice on which products are currently subject to state
monopolies.  Can the Parties confirm that such monopolies operate in a manner consistent with
GATT Article XXII in their purchase from the sales to third countries?
The provisions on state monopolies aim to stress that any state monopoly of a commercial
character should act in a manner which is consistent with the principles of non-discrimination.  As to
products subject to state trading and consistent with Article XVII of GATT 1994, please refer to the
parties’ notifications, which have been submitted to the Committee on State Trading Enterprises.2
(vi) Public Procurement
Do the Parties intend to accede to the Government Procurement Code?
Israel is already a member of the Government Procurement Agreement (GPA).  Poland has an
observer status in the GPA.  Slovenia is going to begin the negotiations on the accession to the WTO
Government Procurement Agreement in the year 2000.
III. GENERAL PROVISIONS OF THE AGREEMENT
4. Relations with Other Trade Agreements
Could the Parties indicate whether their me mbership in these agreements limit in any
way their ability to make concessions in multilateral negotiations?
As has already been expressed by the Parties to each of the two Agreements, the Parties are
committed to the multilateral framework of negotiations.  These agreements, by no means, will limit
the Parties’ ability to make concessions in multilateral negotiations.
IV. OTHER
Are there plans for companion agreements on services?
The provisions of GATS cover trade in Services between the parties to these Agreements.
The parties have no plans to enter into bilateral services agreements.
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2 Israel, G/STR/N/1/ISR/Rev.1, circulated on 26 September 1996;  Poland, G/STR/N/1/POL, circulated
on 5 October 1995.