RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG56/4
WT/REG57/4
3 February 1999
(99-0405)
Committee on Regional Trade Agreements Original: English
FREE TRADE AGREEMENTS BETWEEN
ISRAEL AND THE CZECH REPUBLIC AND
ISRAEL AND THE SLOVAK REPUBLIC
Communication from the Parties
The following communication has been received from the Permanent Missions of Israel,
Czech Republic and Slovak Republic with the request that it be distributed to WTO Members.
_______________
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
The Parties to the first Agreement are the State of Israel and the Czech Republic.  The
Agreement applies to the customs territories and free zones of the State of Israel and the
Czech Republic.
The Parties to the second Agreement are the Government of the State of Israel and the
Government of the Slovak Republic.  The Agreement applies to the customs territories and free zonesof the State of Israel and the Slovak Republic.
The first Agreement was signed on 20 May 1996 and has been applied on a provisional basis
since 1 January 1997.  The Agreement was ratified by Israel on 25 November 1996 and by the
Czech Republic on 9 May 1997 and entered into force on 1 December 1997.
The second Agreement was signed on 22 May 1996, was ratified by Israel on
25 November 1996 and by the Slovak Republic on 25 September 1996 and entered into force on
1 January 1997.
The Agreements were notified to the Council for Trade in Goods on 30 March in accordance
with Article XXIV:7(a) of GATT 1994.
2. Type of Agreement
The Agreements create a free-trade area in conformity with the definition set out in
Article XXIV:8(b) of GATT 1994.
3. Scope
The free-trade areas established by the Agreements provides the framework for future
relations between Israel, the Czech Republic and the Slovak Republic.WT/REG56/4
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The Agreements cover all trade in industrial products (HS Chapters 25-97) and substantially
all trade in agriculture products (HS Chapters 1-24).  The products covered are products originating in
Israel or the Czech Republic or the Slovak Republic according to the rules of origin laid out in theAgreements.
The agricultural products covered by the Agreements are those listed in Annex A to
Protocol 2 of the Agreements for the Czech Republ ic and Slovak Republic and Annex B to Protocol 2
of the Agreements for Israel.
Article 11.4 of the Agreements and paragraph 1 of the Record of Understanding provides that
the Parties shall examine periodically, within the framework of the Joint Committee, the possibilities
of granting each other further concessions in trade in agriculture products.
4. Trade Data
Total trade coverage of the Agreements is as follows:
Czech Republic - Imports from Israel ('000 US$)
Total Trade Trade Covered % of Trade Covered
1995 40,395 38,550 95.4
1996 50,060 46,982 93.9
1997 46,700 44,904 96.2
Slovak Republic – Imports from Israel
Total Trade Trade Covered % of Trade Covered
1995 11,346,955 11,152,330 98.3
1996 18,142,469 17,874,627 98.5
1997 29,702,577 29,333,478 98.7
State of Israel – Imports from Czech Republic (US$)
Total Trade Trade Covered % of Trade Covered
1995 57,470,757 53,843,861 93.7
1996 48,029,158 47,309,415 98.5
1997 50,547,289 50,145,642 99.2
State of Israel – Imports from Slovak Republic (US$)
Total Trade Trade Covered % of Trade Covered
1995 9,061,044 18,998,219 99.7
1996 6,322,011 6,159,680 97.4
1997 7,414,260 7,284,131 98.2
More detailed trade data can be found in the Annex.WT/REG56/4
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II. TRADE PROVISIONS
1. Import Restrictions
1.1 Duties and charges
In accordance with Article 3.2 of the Agreements and as prescribed in Protocol 1 of the
Agreements, customs duties on all originating goods listed in HS Chapters 25-97 except those listed
in Annex I of the Agreements and those listed in  Annexes A, B, C and D of Protocol 1 of the
Agreements, shall be abolished on the date of entry into force of the Agreements.
Customs duties on products listed in Annexes A and C of Protocol 1 of the Agreements shall
be progressively reduced by the Parties in accordance to the timetable listed in Protocol 1 of the
Agreements and finally eliminated by 1 January 1999.
Customs duties on products listed in Annex B of Protocol 1 of the Agreements shall be
progressively reduced by the Czech Republic and the Slovak Republic in accordance to the timetable
listed in Protocol 1 of the Agreements and finally eliminated by 1 July 2000.
Customs duties on products listed in Annex D of Protocol 1 of the Agreements shall be
progressively reduced by Israel in accordance to the timetable listed in Protocol 1 of the Agreements
and finally eliminated by 1 September 2000.
In the case of agricultural products (HS Chapters 1-24) and Annex I of the Agreements,
specific concessions, in the form of preferential duty and/or tariff quotas, for a broad range ofproducts are listed in Annexes A and B of Protocol 2 of the Agreements.
Article 5.2 of the Agreements provides that all ch arges having an effect equivalent to customs
duties on imports shall be abolished on the date of the entry into force of each Agreement.
1.2 Quantitative restrictions
Article 8.1 of the Agreements provides that no new quantitative restrictions or measures
having equivalent effect on imports shall be introduced in trade between the Parties.
Article 8.2 of the Agreements provides that all quantitative restrictions and measures having
equivalent effect on imports of products originating in the Parties shall be abolished on the date ofentry into force of each Agreement, with a few exceptions listed in Annexes II(a) and (b) of the
Agreements.  The restrictions will be abolished no later than  1 January 2001.
2. Export Restrictions
2.1 Duties and chargesArticle 7.1 of the Agreements provides that no new customs duties on exports or charges
having equivalent effect shall be introduced in trade between the Parties.
Article 7.2 of the Agreements provides that the Parties shall abolish between them on the date
of entry into force of each Agreement any customs duties on exports and any charges having
equivalent effect.WT/REG56/4
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2.2 Quantitative restrictions
Article 9.1 of the Agreements provides that no new quantitative restrictions or measures
having equivalent effect on exports shall be introduced in trade between the Parties.
Article 9.2 of the Agreement provides that all quantitative restrictions and measures having
equivalent effect on export of products shall be abolished on the date of entry into force of each
Agreement.
3. Rules of Origin
Protocol 3 of the Agreements lays down the rules of origin.  In general, origin is confirmed
when:
- the good is wholly obtained or produced in the territory of a Party;  or
- each of the non-originating materials used in the production of the good undergoes an
applicable change in tariff classification set out in the specific rule for that good
(detailed in Annex II to Protocol 3), and the good satisfies any other applicable
requirement set out in that rule, as a result of production occurring in the territory of a
party;  and
- the good satisfies other particular circumstances as set out in Protocol 3 of the
Agreement.
The rules of origin enable bila teral cumulation of origin between the Parties, i.e. materials
originating in a Party shall be considered as materi al originating in the other Party when incorporated
into a product obtained there.
Since the Czech Republic and the Slovak Republic have a customs union Agreement, the
rules of origin of the Agreements provide for cumulation of origin among the three countries.
In addition, the rules of origin provided for up to 10 per cent tolerance for non-originating
materials except for products falling within HS Chapters 50-63, and for up to 10 per cent tolerance for
outward processing in a non-member.
The specific rules of origin per product provided for in Annexes I and II of Protocol 3 of the
Agreements are identical to the new European rules of the European Community, in order to facilitate
cumulation of origin with the Eu ropean Community and with other countries maintaining free-trade
area agreements with Israel, the Czech Republic and the Slovak Republic.
The Agreements provided for prohibition of drawbacks as of 31 December 2000.
4. Standards
4.1 Technical barriers to trade
Article 22.1 of the Agreements stipulates that this area in the Parties relations shall be
governed by the WTO Agreements on Technical Barriers to Trade.
Article 22.3 of the Agreements provides that the Parties will enter where appropriate into
negotiations for the conclusion of agreements for the mutual recognition in the field of conformityWT/REG56/4
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assessment, in the spirit of the recommendations of the WTO Agreements on Technical Barriers to
Trade.
4.2 Sanitary and phytosanitary measuresArticle 11.2 of the Agreements provides that the Parties shall apply their sanitary and
phytosanitary measures in accordance with the provisions of the GATT 1994 and the other relevant
WTO Agreements.  The Parties shall not apply their regulations in veterinary, plant health and health
matters in an arbitrary, unjustifiable or discriminatory way or as a disguised restriction on trade
between them.
5. Safeguards
Article 29 of the Agreements establishes the administration procedures for the application of
safeguard measures between the Parties in the case of dumping (Article 23), emergency actions on
imports of particular products - general safeguards (Article 25), measures related to re-export andserious shortage (Article 27) and in failure of a Party to fulfill an obligation under the Agreement
(Article 28).
Article 25.1 of the Agreements provides for the application of general safeguard measures by
a Party, where any product is being imported in such quantities and under such conditions as to causeor threaten to cause:
- serious injury to domestic producers of the like or directly competitive products in the
territory of the importing Party;  or
- serious disturbances in any sector of the economy or difficulties which could bring
about serious deterioration in the economic situation of a region.
Article 25.2 of the Agreements provides that when in view of the importing Party, the
importation of a product from the other party is not a substantial cause of a serious injury or threat
thereof, the product of the Party shall be exempted  from any import relief that may be imposed with
respect to imports of that product from third countries.
Article 26 of the Agreements provides for the application of exceptional measures of limited
duration concerning infant industries, or certain sectors undergoing restructuring or facing serious
difficulties.  These measures may not exceed 25 per cent ad valorem and should maintain an element
of preference.  The total value of imports of products which are subjects to these measures may notexceed 15 per cent of total imports of industrial products during the last year for which statistics are
available.  These measures will be applied for a period not exceeding three years and should cease to
apply at the latest on 1 January 2001.
Article 30.1 of the Agreements provides that the Parties will attempt to avoid the imposition
of restrictive measures relating to imports for balance-of-payment purposes.
In the case of serious balance-of-payment difficulties, Article 30.2 of the Agreements allows
the Parties to adopt restrictive measures in accord ance with the conditions laid down in the framework
of WTO/GATT 1994.WT/REG56/4
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6. Anti-Dumping and Countervailing Measures
Article 23 of the Agreements provides that if a Party finds that dumping within the meaning
of Article VI of the GATT 1994 is taking place in trade relations governed by the Agreements, it maytake appropriate measures against that practice in accordance with the WTO Agreement on
Implementation of Article VI of the GATT 1994.
7. Subsidies and State-Aid
Article 20 of the Agreements refers to state aid:
- Article 20.3 of the Agreements provides that the Parties shall ensure transparency in
the area of state aid, in accordance with the provision of the Agreement on Subsidies
and Countervailing Measures and the WTO/GATT 1994.
- Article 20.4 of the Agreements provides that measures taken must be under the
condition of and in accordance to the procedure laid down in Article 29 of the
Agreements.  Such appropriate measures may only be taken in conformity with the
procedures and under the conditions laid down by the Agreement on Subsidies and
Countervailing Measures and the WTO/GATT 1994 and in accordance with the
relevant internal legislation of the importing Party.
8. Sector Specific Provisions
The Agreements do not contain sector-specific provisions.
9. Other
Customs Cooperation
Article 13.1 of the Agreements establishes a framework for cooperation in customs
administration, with particular regards to the method of cooperation in the administration of the rules
of origin.
State Monopolies
Article 17.1 of the Agreements calls for the Parties to ensure that any state monopoly of a
commercial character be adjusted so that no di scrimination regarding the conditions under which
goods are procured and marketed exists between nationals of the Parties.
Competition Policy
Article 19 of the Agreements relates to the rules of competition.  Article 19.5 of the
Agreements states that with regards to activit ies under the Agreements and in accordance to the
Parties laws, regulations and policies, each Party will accord fair and equitable treatment to the
individuals, companies, government agencies and other entities of the other Party.
Internal Taxation
Article 14 of the Agreements prohibits any measures or practice of internal fiscal nature
establishing discrimination between the products originating from either Party.  This Article also
prohibits repayment of indirect taxation in exce ss of the amount of indirect or direct taxes.WT/REG56/4
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Payments
Article 18 of the Agreements prohibits restrictions on payments in freely convertible
currencies relating to commercial transactions between the Parties and refers to Article VIII of the
Statutes of the International Monetary Fund.
Public Procurement
On public procurement, under Article 21.2 of the Agreements, the Parties shall progressively
develop their respective regulations for public procurement with a view to grant suppliers of the otherParty by the end of 1998, at the latest, access to contract award procedures on their respective public
procurement markets according to the provisions of the Agreement on Government Procurement
concluded in the framework of the WTO and the Parties undertakings therein;  or under Article 21.3
of the Agreements, the Joint Committee shall examine developments related to the achievement of the
objectives of this Article and may recommend practical modalities of implementing the provisions ofArticle 21.2 so as to ensure free access, transparency and a mutual opening of their respective public
procurement markets.
Intellectual Property
On intellectual property, under Article 24.1 of the Agreements, the Parties shall grant and
ensure adequate, effective and non-discriminatory protection of intellectual rights, to a level
corresponding to the substantive standards of the multilateral agreements which are specified in
Annex III of the Agreements.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
Article 15 of the Agreements allows restrictions on imports, exports or goods in transit
justified on grounds of public morality, public policy or public security;  protection of health and lifeof humans, animals and plants, including environmental measures necessary to protect human, animal
or plant life or health;  of the protection of natural treasures possessing artistic, historic or
archaeological value;  of the protection of intellectual property;  or of the rules related to gold or silver
or conservation of exhaustible natural resources.
Article16 of the Agreements includes a provision on national security.
2. Accession
The Agreements do not contain provisions regarding accession.
3. Dispute Settlement Procedures
Article 34 of the Agreements provides that for a dispute settlement process to deal with any
dispute relating to the application or the interpretation of the Agreements either through theJoint Committee by decision or through a panel of three arbitrators by majority, within a 90 day
period or with such longer period as may be agreed by the Joint Committee.WT/REG56/4
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4. Relations with Other Trade Agreements
The Agreements incorporate certain provisions of GATT 1994 including Article VI and other
WTO/GATT 1994 Agreements, namely the Agreement on Subsidies and Countervailing Measures,the Agreement on Technical Barriers to Trade, the Agreement on Implementation of Article VI of the
GATT 1994 and the Agreement on Sanitary and Phytosanitary Measures.
As mentioned in Section II.3, certain rules of origin have taken into account the customs
union that exists between the Czech Republic and the Slovak Republic for cumulation purposes.
As mentioned in Section IV, for protection of intellectual property, the Agreements relate to
the multilateral agreements listed in Annex III of the Agreements.
5. Institutional Framework
Article 32 of the Agreements establish a Joint Committee composed of the representatives of
the Governments of the Parties.  The Joint Committee shall meet at least once a year to ensure the
proper implementation of the Agreements.  It shal l examine any issue arising from the Agreements
and any other trade or economic issue of mutual interest.
The Joint Committee may take decisions in the cases provided for in the Agreements and
make recommendations on any other trade and economic matter of mutual interest to the Parties.  It
may set up subcommittees and working groups as it considers necessary to assist it in accomplishing
its tasks.WT/REG56/4
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ANNEX
Israel – Total Imports from the Slovak Republic (US$)
HS Chapter 1995 1996 1997
1 000
2 000
3 000
4 000
5 000
6 000
7 62,679 15,449 0
8 0 0 59,516
9 000
1 0 000
1 1 000
12 0 600 0
1 3 000
1 4 000
1 5 000
1 6 000
1 7 000
1 8 000
1 9 000
20 62,825 117,783 56,565
2 1 000
22 6,409 29,099 20,325
2 3 000
2 4 000
2 5 000
2 6 000
2 7 000
2 8 000
29 101,637 100,777 721,907
3 0 000
3 1 000
32 0 0 11,886
3 3 000
34 54,151 94,946 126,108
3 5 000
3 6 000
3 7 000
38 66,682 68,646 63,953
39 33,067 65,403 42,468
40 278,959 189,758 288,293
41 20,363 55,109 46,946
42 1,120 0 655
4 3 000
44 1,224 56,798 498,849
4 5 000
4 6 000
4 7 000
48 27,015 0 21,907
49 817 19,454 27,983
5 0 000
51 0 3,810 35,680
52 0 2,726 0
5 3 000WT/REG56/4
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HS Chapter 1995 1996 1997
54 68,906 0 745
55 4,643 0 0
5 6 000
57 0 62 0
5 8 000
5 9 000
6 0 000
61 0 1,339 2,732
62 311 26,632 19,902
63 2,823 313 0
64 17,210 26,347 35,032
6 5 000
66 0 604 0
6 7 000
68 0 0 6,362
69 4,199 0 30,237
70 246,745 237,112 144,277
71 2,416 13,037 8,372
72 15,137,387 2,328,866 3,353,182
73 155,329 696,261 628,469
7 4 000
7 5 000
76 1,299,051 109,820 0
7 7 000
7 8 000
7 9 000
8 0 000
8 1 000
82 9,552 69,995 1,308
83 1,503 2,230 6,126
84 435,459 533,910 246,401
85 119,894 384,093 196,693
86 749,712 888,969 554,839
87 14,056 208 36,055
88 0 10,243 19,797
8 9 000
90 34,997 137,341 9,632
9 1 000
9 2 000
9 3 000
94 34,097 25,219 61,413
95 218 8,005 1,311
9 6 000
97 5,389 0 0
Other 199 1,047 28,334
Total 19,061,044 6,322,011 7,414,260WT/REG56/4
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Page 11
Israel – Total Imports from the Czech Republic (US$)
HS Chapter 1995 1996 1997
1 70,208 1,943 16,993
2 0 0 188,663
39 6 0 2 , 9 6 0
4 2,118,898 0 67,212
5 000
6 000
7 0 206,376 149,417
80 0 1 , 6 6 0
9 0 0 410,430
10 1,390,695 3,283,018 3,103,367
11 94,745 0 0
12 915 1,443,679 9,735
1 3 000
14 0 4,861 40,590
15 0 0 11,250
1 6 000
1 7 000
18 0 2,598 45,052
1 9 000
20 43,956 538,703 745,798
21 0 18,255 133
22 12,618 4,830 51,811
23 2,971 88,059 202,475
2 4 000
25 0 18,340 71,288
2 6 000
27 0 0 14,426
28 0 2,026,434 1,710,665
29 609,272 4,704,034 5,400,320
30 0 432 1,432
31 0 0 955
32 18,771 13,894 0
33 0 300 18,826
34 17,431 120 3,173
35 880 0 650
36 0 0 6,709
37 1,991 31,684 72,169
38 88,834 747,011 360,762
39 287,898 16,252,233 18,408,881
40 1,309,181 250,346 445,009
41 0 0 25,679
42 44,879 2,869 833
4 3 000
44 77,496 360,635 19,514
4 5 000
46 39 19,985 26,043
47 412,569 0 0
48 71,288 157,132 740,253
49 23,258 8,410 8,098
5 0 000
51 3,019 0 18,287
52 1,956 182,833 227,546
53 8,082 72,242 48,167
54 0 52,309 232,185
55 464,897 3,225 183,992
56 14,684 0 0WT/REG56/4
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HS Chapter 1995 1996 1997
57 0 65 2,417
58 0 839 15,373
5 9 000
60 0 6,377 4,674
61 4,784 1,638 55,941
62 8,817 38,555 67,796
63 23 3,399 2,726
64 41,458 7,883 0
65 68,165 32,612 168,964
6 6 000
67 0 16 0
68 8,206 287,923 263,366
69 21,712 2,416 1,541
70 786,206 176,904 116,250
71 154,688 707,100 458,448
72 25,329,745 1,779,484 3,184,654
73 2,745,187 109,889 144,976
74 30 65,620 2,887
7 5 000
76 518,116 4,837,290 3,461,153
7 7 000
78 0 38,006 0
7 9 000
8 0 000
8 1 000
82 103,993 170,503 98,817
83 116,023 20,863 47,088
84 1,557,236 4,829,339 4,048,895
85 819,632 3,638,292 3,084,783
86 101,323 0 0
87 17,023,021 271,815 1,453,694
88 91,083 14,574 112,005
8 9 000
90 105,812 286,749 460,425
91 2,049 3,090 5,881
92 57,000 400 2,537
9 3 000
94 538,037 27,503 11,902
95 52,413 87,183 26,575
96 17,560 24 8,111
97 2,281 60,972 22,074
Other 4,558 25,045 119,728
Total 57,470,757 48,029,158 50,547,089WT/REG56/4
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The Czech Republic – Imports from the State of Israel (in thousands USD)
HS Chapter 1995 1996 1997
1 1 106 168
2
30
4 276 400 163
59
6 484 531 475
7 744 2,081 1,249
8 648 434 307
9 056
10
11 0 0
12 421 492 143
13
14 59 370 642
15 1 10
16
17 3 1
1 8 04 82 9
19 43 10 5
20 880 1,347 378
21 110 98 32
22 23 5 2
23 0 4 12
24
25 59 107 162
26
27 0 0 10
28 444 150 390
29 545 252 117
30 46 38 136
31 46 25 161
32 131 43 41
33 614 459 259
34 107 184 63
35 53 85 83
36
3 7 01 58 6
38 343 419 616
39 861 574 1,246
40 18 11 24
41
42 4 125 96
43
4 4 832
45
46
47
48 128 66 237
49 26 84 44
50
51 4 16
52 2,489 890 3,238
53
54 120 336 259
55 5
56 200 1 11WT/REG56/4
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HS Chapter 1995 1996 1997
57 4 37
58 1 0
5 9 11 55 3
60
6 1 82 58 2
62 20 35 10
63 6 2 56
6 4 113
6 5 010
66 0
67
6 8 441
69 1 0
70 73 10 9
71 4,154 2,752 3,485
72 0 0
73 43 94 46
7 4 105
75
76 1,165 1,227 246
77
78 0
79
80
81
82 2,240 2,062 2,682
83 267 368 353
84 5,619 5,738 9,126
85 12,747 24,745 14,907
86 24
87 84 32 76
88 90 24 7
89
90 3,114 2,859 3,520
91 2 7 31
92 10 0
93
94 118 86 166
95 10 28 60
96 14 29 2
97 412 1
Total 40,396 50,060 46,811WT/REG56/4
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Page 15
The Slovak Republic – Total Imports from Israel
HS Chapter 1995 1996 1997
1 0 32,541 63,885
2 000
3 000
4 0 49,934 48,812
50
6 46,925 65,535 139,416
7 4,362 16,323 4,161
8 69,369 159,334 173,799
9 000
1 0 000
11 0 468 0
12 0 158 168,401
1 3 000
1 4 000
15 0 331 0
1 6 000
17 0 20 0
18 0 0 2,339
19 0 3,537 6,211
20 92,606 20,957 24,007
21 3,036 0 0
22 0 43 0
2 3 000
2 4 000
25 4,999 96 1,319
2 6 000
2 7 000
28 74,111 76,520 7,248
29 180,204 223,548 436,430
30 28,253 32,201 42,897
31 3,661,960 352,023 16,036
32 1,161 532 9,070
33 174,649 362,038 128,456
34 6,391 17,456 7,318
35 5 4,919 38,348
36 0  0 41,833
37 17 0 221
38 385,597 757,206 1,188,464
39 98,987 162,631 197,386
40 1,190 3,672 9,019
4 1 000
42 1,240 2,601 7,167
4 3 000
44 249 365 22,739
4 5 000
4 6 000
4 7 000
48 37 2,385 13,960
49 4,746 30,231 6,745
5 0 000
51 0 0 20,398
52 5,809 364,162 96,455
5 3 000
54 2,359 6,025
55 5,541 46,611 109,058
56 10,898 0 0WT/REG56/4
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Page 16
HS Chapter 1995 1996 1997
57 0 0 11,675
58 235 2,591 1,758
59 84,891 8,367 7,596
6 0 000
61 1,063 5,123 12,100
62 11,352 28,939 11,836
63 107,022 101,107 182,091
64 50 4,862
65 2,593 1,341 323
6 6 000
6 7 000
68 5 110
69 421 26,123 3,021
70 0 0 83
71 1,650,744 913,694 1,047,811
72 0 163 157
73 20,132 337 12,567
7 4 000
7 5 000
76 353,381 378,745 155,818
77
7 8 000
7 9 000
8 0 000
8 1 000
82 564,030 790,788 732,281
83 190,546 315,980 288,428
84 2,130,506 1,934,183 3,561,839
85 1,000,293 6,664,031 17,491,703
8 6 000
87 659 26,539 223,524
88 0 3,188 2,850
8 9 000
90 229,442 4,053,995 2,660,622
91 20,352 44,114 14,614
9 2 000
93 99,932 34,005 154,702
94 877 6,427 32,816
95 0 1,810 45,533
96 13,779 6,176 10,256
97 0 249 0
Total 11,346,955 18,142,469 29,702,577
__________