RESTRICTEDWORLD TRADE
ORGANIZATIONTN/S/O/ISR
17 April 2003
(03-2138)
Council for Trade in Services
Special SessionOriginal:  English
COMMUNICATION FROM ISRAEL
Initial Offer
The following initial offer has been received from the delegation of Israel on 14 April with
the request that it be circulated to Members of the Council for Trade in Services.
_______________
The Government of Israel reserves the right to modify or withdraw the attached offer, in
whole or in part, in light of the ongoing trade in services negotiations and the negotiations under the
Doha Development Agenda.
The Government of the State of Israel also reserves the right to make any technical change or
correction to this initial conditional offer and any subsequent conditional offer that could follow.TN/S/O/ISR
Page 3ISRAEL – SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
I. HORIZONTAL
COMMITMENTS
ALL SECTORSINCLUDED IN THISSCHEDULE3) Registration of corporate bodies.  The
Companies Ordinance (New Version) 5743-1983 ,
The Companies Law 5759-1999 requires that a
public corporation must have on its board  of
directors  at least two  outside directors representing
the public at large, who must be residents of Israel.
that have no business or other relationship with
the company or with the holder of control of the
company. The Relief for Foreign Companies
Regulation, permits companies whose shares
are listed abroad, to appoint a non residentoutside director.
The same enactment also requires a foreigncompany that maintains in Israel a place of
business or an office for registration or
transfer of shares to register as a foreigncompany and pay the requisite fees.  ThePartnership Ordinance (New Version), 5735-1975 provides that a foreign partnership, i.e.one formed outside Israel, may only carry on
business in Israel if it is registered in the Israel
register partnerships. In the case of a limitedpartnership, registration has to be sanctionedby the Minister of Justice who at his discretionmay authorize or refuse registration.TN/S/O/ISR
Page 4Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
4) Presence of Natural Persons
1. Unbound except that Israel shall permit,
without requiring compliance with labourmarket tests, the temporary entry of serviceproviders as intra-corporate transfers in the
following categories:4) Unbound except for executives and managers
referred to under Market Access.
(a) Executives:  persons who primarily direct
the management of the organization, establishits goals and generally have a wide decisionmaking authority;(b) Managers:  persons who direct the
organization or its department and are in a
senior level position responsible for the
service providing functions of the organizationby supervising and controlling and having alsoauthority to hire and fire personnel orrecommend such and other personnel actions.
2. Unbound:  Work permit will be issued in
compliance with the labour market tests tothose intra-corporate specialists, who possessknowledge at an advanced level of expertiseor otherwise essential or proprietal to the
organization's service, research equipment,
techniques or management.TN/S/O/ISR
Page 5Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
II. SECTOR-SPECIFIC
COMMITMENTS
1. BUSINESS SERVICES
A. Professional Services
(a) Legal services (CPC 861) 1) None
2) None
3) Israeli resident or citizen4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) Israeli resident or citizen4) Unbound except as indicated in the horizontal
section.
(b) Accounting (CPC 862) 1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
(d) Architectural services
(CPC 8671)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
(e) Engineering services
(CPC 8672-8673)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
(g) Urban planning
(CPC 8674)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.TN/S/O/ISR
Page 6Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
8. Computer and Related 
Services
(a) Consultancy services
related to the installation ofcomputer  hardware (CPC
841)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
(b) Software implementation
services (CPC 842)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
(c), (d) Data processing and 
database services(CPC  8440  and 843
excluding 84330 )1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
(e) Maintenance and repair
services of office
machinery and equipment
including computers
        (CPC 845)1) None
2) None3) None
4) Unbound except as indicated in the
horizontal section.1) None
2) None3) None
4) Unbound except as indicated in the
horizontal section.
F. Other Business Services
(a) Advertising (CPC 871) 1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.TN/S/O/ISR
Page 7Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(b) Market research and public
opinion (CPC 864)1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound except as indicated in the horizontal
section.
(c) Management consulting
(CPC 865-866)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
(h) Services incidental to
mining and oil-field
        (CPC 8830)
         covering:1) Unbound∗
2) Unbound*
3) None4) Unbound except as indicated in the horizontal
section.1) Unbound*
2) Unbound*
3) None4) Unbound except as indicated in the horizontal
section.
                                                     
∗ Unbound due to lack of technical feasibility.TN/S/O/ISR
Page 8Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
• Management,
economic andscientific activitiesrelated to evaluationof a basin
• Geologic, geophysical,
geochemical activities
and geoscientific datagathering related tothe location ofmineral deposits, oiland gas
• Well drilling and
testing
• Mapping on water,
land and transitionzones through seismic
or other imagining
techniques
• Geological and
geophysicalinterpretation
• Reservoir simulation
• Risk analysis
• Reserve estimation
• Data management
and analysis,including computer
modeling
• Conceptual
engineering
• Resource and
facilities description
• Screening
• Site preparation and
survey
• Feasibility and
appraisalTN/S/O/ISR
Page 9Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(k) Placement and supply
services of personnel -domestic market only(CPC 872)1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.
(m) Related scientific and
technical consulting
services(CPC 8675)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
(p) Photographic services
(CPC 875)1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section.
2. COMMUNICATION
SERVICES
A., Postal/Courier Services
B. (CPC 75111-2 and 7512)
Above 500g per addresseditem1) None
2) Unbound*
3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) Unbound*
3) None
4) Unbound except as indicated in the horizontal
section
C. Telecommunication
Services1) The existing monopoly's exclusive rights in
domestic Telecommunication services andinfrastructure mentioned in paragraphs: a(I),a(III), b, c, f, g,  will terminate not later than
the year 2001. The government will publish
the rules and regulatory policy regarding theway of opening the above mentioned tocompetition in the future.TN/S/O/ISR
Page 10Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
2) The government issued two licenses to two
operators that won a tender issued by thegovernment for the operation of internationalservices in addition to those offered by thepresent operator (BEZEQ International, whichis a fully (100%) subsidiary of BEZEQ - the
local PTT). The companies have exclusivity
until 1.1.2002 and the government will re-examine its policy regarding furthercompetition in the field of internationalservices towards the year 2001.
FOREIGN INVESTMENT
(a) No limitation on foreign ownership for 
value-added service providers.
(b) 74% foreign ownership permitted in 
international service providers.
(c) 80% foreign ownership  permitted in 
wireless service providers.
(a) Voice telephone services
(CPC 7521)(i) Public voice 
telephone:
-w i r e - b a s e d
- facilities based- local/long distance
11) Only through network of Bezeq, the Israel
Telecommunications Corp. Ltd.
2) None3) Reserved to Bezeq, the monopoly supplier:
foreign equity partic ipation in Bezeq is
permitted.
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in  horizontal
sectionSee annexed, as well as the
following (in case ofinconsistency between theAnnex and the following
text, the Annex will
prevail):
Independence of regulator
Regulatory functions are
the exclusive purview of
the Ministry of
Communications.
                                                     
1 International simple resale is not permitted.TN/S/O/ISR
Page 11Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(ii) Public voice 
telephone:
-w i r e - b a s e d- facilities based- International1) Only through network of three operators
2) None3) Reserved to three operators.  74% foreign
ownership permitted in international serviceproviders
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
sectionInterconnection
The Telecommunications
Law (5742-1982)authorizes the Minister ofCommunications, interalia to order one operator
to allow interconnection of
its network to the facilitiesof another operator; bothoperators are to negotiatethe proper system ofreimbursement.
(iii) Public voice 
telephone:
- local/long distance- radio-based1) None, but by using Bezeq's network, or by
using licensees own network.
2) None3) Local partner required; no more than 80% of
shares may be owned by a foreign entity.
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in horizontal
sectionShould they not reach an
agreement, the Minister
may decide on the properprice for theinterconnection, based onincrement costs whichinclude operating,
expenses,  and proper
return of equity.
(iv) Non-public voice
telephone: closed user
groups and private
networks
- Local/long-distance1) Only through Bezeq's network
2) None
3) Resale of excess capacity is not permitted,
must be point-to-point without anytransmission to a third party.
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in horizontal
sectionIn the event that a tender
will  be issued for limited
competition in this field
(i.e  international services),the  Minister willdetermine maximumtariffs.
(b) Packet-switched data
transmission (CPC 7523)and
(c) Circuit-switched data
transmission services(CPC  7523)
- Local, Long distance1) Only through network of Bezeq
2) None3) Only through network of Bezeq.  Foreign
equity participation in Bezeq is permitted.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
sectionTN/S/O/ISR
Page 12Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(c) Circuit-switched data
transmission services(CPC 7523)- International1) Only by using three operator's and IBS
licensees' network.
2) None3) Only by using three operator's and IBS
licensees' network.  74% foreign ownershippermitted in international service providers
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in horizontal
section
(f) Facsimile services
(CPC 7521 + 7529)- Local, Long 
distance1) Only through network of Bezeq
2) None3) Only through network of Bezeq.  Foreign
equity participation in Bezeq is permitted.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
section
- International 1) None
2) None3) None
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
section
(g) Private-leased circuit
services
(CPC 7522 + 7523)
- Non-voice- Local/long-
distance
- for public or non-
public use1) Only through Bezeq's network
2) None
3) Only through circuits leased from Bezeq.
Foreign equity participation in Bezeq ispermitted.
4) Unbound except as indicated in horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in horizontal
sectionTN/S/O/ISR
Page 13Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
- Non-voice
- for public or non-
public use
- International1) Only by using three operators' and IBS
licensees' network.
2) None3) Only by using three operators' and IBS
licensees' network.  74% foreign ownershippermitted in international service providers
4) Unbound except as indicated in horizontal
section.1) None
2) None
3) None
4) Unbound except as indicated in horizontal
section.
(o) Other
(i) Paging services 1) None
2) None
3) None
4) Unbound except as indicated in horizontal
section.1) None
2) None
3) None
4) Unbound except as indicated in horizontal
section.
(ii) Satellite services: 
voice and data1) None
2) None3) None
4) Unbound except as indicated in horizontal
section.1) None
2) None3) None
4) Unbound except as indicated in horizontal
section.
Data and message transmission(CPC 7523)1) None except for:
Must be transmitted via the infrastructure of a
local licensee.
2) Unbound*3) None except for:
Must be transmitted via the infrastructure of alocal licensee.
4) Unbound except as indicated in the horizontal
section.1) None except for:
Must be transmitted via the infrastructure of a
local licensee.
2) Unbound*3) None except for:
Must be transmitted via the infrastructure of alocal licensee.
4) Unbound except as indicated in the horizontal
section.TN/S/O/ISR
Page 14Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
D. Audiovisual Services
(a) Motion pictures and video-
tape production (CPC96111-2)1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) None3) Israeli movies (25% Israeli investments) are
entitled to a grant.
4) Unbound except as indicated in the horizontal
section.
Distribution of motionpictures and video-tape(CPC 96113)1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.TN/S/O/ISR
Page 15Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
3. CONSTRUCTION AND
RELATEDENGINEERINGSERVICES
B. General Construction
Work for Civil
Engineering
Construction for long
distance pipelines (CPC51340)1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal section1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal section
Construction for localpipelines and cables;ancillary works
 (CPC 51350)1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal section1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal section
Construction for miningand manufacturing
  (CPC 51360)1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
horizontal section1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
horizontal section
E. Other
Site preparation work formining (CPC 5115)1) Unbound
2) Unbound
3)None
4) Unbound except as indicated in the
horizontal section1) Unbound
2) Unbound3) None4) Unbound except as indicated in the
horizontal sectionTN/S/O/ISR
Page 16Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
4. DISTRIBUTION
SERVICES
B. Wholesale Trade Service
Wholesale trade service of
motor vehicles
(CPC 61111)1) None
2) None
3) None
4) Unbound except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound except as indicated in
thehorizontal section
C. Retailing services
Retail sales of motorvehicles (CPC  61112)1) None
2) None3) None4) Unbound except as indicated in the
horizontal section1) None
2) None3) None4) Unbound except as indicated in the
horizontal section
Sales of motorcycles and snow mobiles and related parts and accessories
 (CPC 6121)1) None
2) None3) None4) Unbound except as indicated in the
horizontal section1) None
2) None3) None4) Unbound except as indicated in the
horizontal section
Retail sales of fuel oil,bottled gas, coal andwood CPC 63297)1) Unbound
2) Unbound3) None4) Unbound except as indicated in the
horizontal section.1) Unbound
2) Unbound3) None4) Unbound except as indicated in the
horizontal section.TN/S/O/ISR
Page 17Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
6. ENVIRONMENTAL
SERVICES
Sewage and refuse disposal
services (CPC 9401-9405)
(Not including industrial
activities)
A. Sewage services
(CPC 9401)
(Not including industrial
activities)
B. Refuse disposal services
(CPC 9402)
(Not including industrial
activities)
C. Sanitation and similar
services
(CPC 9403)
(Not including industrial
activities)
D. Other
- Cleaning services of exhaust
gases(CPC 9404)
-Noise abatement services
(CPC 9405)
(Not including industrial
activities)1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None4) Unbound except as indicated in the horizontal
section.
Note:  The common practice in this sector is to
require a local representative.TN/S/O/ISR
Page 18Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
7. FINANCIAL SERVICES
General Notes:
1. The commitments in financial services are made in accordance with the General Agreement on Trade in Services and the Annex on  Financial Services.
2.Israel applies certain restrictions on the convertibility of its currency.  Therefore, certain rules concerning the purchase of  foreign currency from New Israeli Sheqel
(N.I.S.) by permanent residents in Israel are not intended to discriminate against foreign suppliers of Financial Services as s uch.  In this context Israel is "Unbound" to
cross-border supply (mode 1) and consumption abroad (mode 2) in certain Financial Services due to limitations and licensing req uirements applied by The
CURRENCY CONTROL LAW, 5738-1978 on transaction in foreign currency or in foreign security, to which a permanent resident in Isr ael is a party of, whether the
transaction is made in Israel or outside of Israel.
Israel has not undertaken commitments  ("Unbound") on cross-border supply (mode 1) and consumption abroad (mode 2) in certain F inancial Services due to the
following general foreign currency regulations:
       The Currency Control Act, 5738-1978,  precludes conducting any transaction or de alings of an Israeli resident with a fore ign resident in foreign currency without a
permit. However, the Currency Control Permit 5758-1998 permits all transactions and dealings that  require a permit under the Ac t, subject to a reporting
requirement to the foreign currency comptroller and informing the financial intermediary.
3. For prudential reasons within the context of paragraph 2( a) of the Annex on Financial Services, Israel applies, inter alia , measures requiring juridical form of
establishment or residence of natural persons in Israel for the supply of Financial Services.
4. Modes of supply 1 and 2 in financial services schedules:  the absence of any limitation on the ability of a resident consumer  to purchase the service in the territory of
another Member does not signify a commitment to allow a non-resident service supplier to solicit business or to conduct active marketing in the territory of the
Member.
All Insurance and Insurance
Related Services
I. Direct insurance
(A) Life insurance including
Pension fund1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound except as indicated in the horizontal
section.TN/S/O/ISR
Page 19Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(B) Non-Life insurance
services1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Compulsory car insurance must be purchased in
Israel from an insurance company established inIsrael and licenced by the Israeli commissionerof insurance.
3) None
4) Unbound except as indicated in the horizontal
section.
(C) M.A.T 1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.
II. Reinsurance and
retrocession1) None
2) None3) None
4) Unbound, except as indicated in the horizontal
section.1),2) & 3) None:  Israel intends to enact 
regulations requiring registration of Certified Foreign Reinsurers in an Israeli Reinsurance Registrar.
4) Unbound, except as indicated in the horizontal
section.
III. Insurance intermediation
such as brokerage and
agency1) None
2) None
3) None
4) Unbound, except as indicated in the horizontal
section.1) None
2) None
3) None
4) Unbound, except as indicated in the horizontal
section.
IV. Services auxiliary
to insurance
(a) Consultancy 1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.TN/S/O/ISR
Page 20Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(b) Actuarial services 1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
(c) Risk assessment 1) Unbound
2) Unbound
3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None4) Unbound, except as indicated in the horizontal
section.
(d) Claim settlement 
services1) Unbound
2) Unbound
3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None4) Unbound, except as indicated in the horizontal
section.
Banking and other Financial
Services (Excluding Insurance)
V. Acceptance of deposits and
other repayable funds fromthe public1) Unbound
2) Unbound3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.
VI. Lending of all types,
including consumer credit,
mortgage credit, factoring
and financing ofcommercial transaction1),2) Such activities may only be carried out 
through Banking institutions licenced by 
the controller of foreign exchange to act 
as an authorized dealer.
3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.1),2) Such activities may only be carried out 
through Banking institutions licenced by 
the controller of foreign exchange to act as 
an authorized dealer.
3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.TN/S/O/ISR
Page 21Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
VII. Financial leasing 1) Unbound
2) Unbound3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None for banks.  Unbound for non banking
institutions.
4) Unbound, except as indicated in the horizontal
section.
VIII. All payment and 
money transmission services, including credit, charge and debitcards, travellers cheques and bankers 
drafts1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
IX. Guarantees and
commitments1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.
X. Trading for own account
or for account of customers,whether on an exchange, in
an over-the-counter market
or otherwise, the following:
(A) money market 
instruments (including cheques, bills, 
certificates of deposits,
etc.)1) Unbound
2) Unbound3) None
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None
4) Unbound, except as indicated in the horizontal
section.
(B) Foreign exchange 1) Unbound
2) Unbound3) None
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None
4) Unbound, except as indicated in the horizontal
section.TN/S/O/ISR
Page 22Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(E) Transferable securities 1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
XI. Participation in issues of all
kinds of securities,
including underwriting andplacement as agent(whether publicly orprivately) and provision ofservices related to such
issues1) Unbound
2) Unbound
3) None, except that:
Banks are required to carry out such activitiesonly through subsidiaries.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound
3) None, except that:
Banks are required to carry out such activitiesonly through subsidiaries.
4) Unbound, except as indicated in the horizontal
section.
XIII. Asset management, 
such as cash or portfolio management, all forms of collective 
investment 
management, custodial,depository and trust services1) Unbound
2) Unbound3) None, except that:
Banks are required to carry out asset
management activities only through
subsidiaries.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None, except that:
Banks are required to carry out asset
management activities only through
subsidiaries.
4) Unbound, except as indicated in the horizontal
section.
XIV. Settlement and clearing
services for financial assets, including securities, derivative products and other negotiable instruments1) Unbound
2) Unbound3) Securities settlement and clearing services in
the T.A. Stock Exchange are exclusivelyprovided for the Stock Exchange members.
4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) Securities settlement and clearing services in
the T.A. Stock Exchange are exclusivelyprovided for the Stock Exchange members.
4) Unbound, except as indicated in the horizontal
section.
XV. Provision and transfer of
financial information, andfinancial data processingand related software by
suppliers of other financial
services1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.1) None
2) None3) None4) Unbound, except as indicated in the horizontal
section.TN/S/O/ISR
Page 23Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
XVI. Advisory, 
intermediation and other auxiliary financial services on allthe activities listed in subparagraphs (V) 
through (XV), 
including credit reference and analysis, investment and portfolio research and advice, advice on 
acquisitions and on 
corporate restructuring and strategy1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.1) Unbound
2) Unbound3) None4) Unbound, except as indicated in the horizontal
section.
9. TOURISM AND
TRAVEL-RELATEDSERVICES
A. Hotel Services (CPC 641) 1) Unbound*2) None
3) Ownership must be in hands of Israeli-
registered company.
4) Unbound except as indicated in the horizontal
section.1) Unbound*
2)None  Tourists exempt from 
V.A.T. on services
given by hotels and paid in foreign currency .
3) None
4) Unbound except as indicated in the horizontal
section.
Food serving services(CPC 642-643)1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section.1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section.TN/S/O/ISR
Page 24Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
B. Travel Agencies and Tour
Operators
(CPC 7471)1) Unbound
2) None3)None Ownership must be in hands of Israel-
registered Company.  Travel Agencies should
employ at least one Israel-licensed Travel
Expert.
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) None3) None
4) Unbound except as indicated in the horizontal
section.
C. Tourist Guides Services
(CPC 7472)1) Not applicab le Unbound*
2) None3) Israeli resident or citizen.
4) Unbound except as indicated in the horizontal
section.1) Not applicable
 Unbound*
2) None3) Israeli resident or citizen.
4) Unbound except as indicated in the horizontal
section.
11. TRANSPORT SERVICES
C. Air Transport Services
Maintenance and repair of
aircraft and parts thereof(Annex on Air Transport)1) None
2) None
3) Physical constraints in the airport may
affect the number of suppliers
4) Unbound except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound except as indicated in the
horizontal section
Computer reservation systems(Annex on Air Transport)1) None
2) None3) None4) Unbound except as indicated in the
horizontal section1) None
2) None3) None4) Unbound except as indicated in the
horizontal section
F. Road Transport Services
b. Freight TransportationTransportation ofcontainerized freight (CPC
71233)1) Unbound
2) None3) None4) Unbound except as indicated in the
horizontal section1) Unbound
2) None3) None4) Unbound except as indicated in the
horizontal sectionTN/S/O/ISR
Page 25Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Transportation of furniture
(CPC 71234)1) Unbound
2) None3) None4) Unbound except as indicated in  the
horizontal section1) Unbound
2) None3) None4) Unbound except as indicated in the
horizontal section
Freight transportation by man
or animal drawn vehicle
(CPC 71236)1) Unbound
2) None
3) None4) Unbound except as indicated in the
horizontal section1) Unbound
2) None
3) None4) Unbound except as indicated in the
horizontal section
d. Maintenance and repair
services of motor vehicles
(CPC 6112)1) None
2) None
3) None4) Unbound except as indicated in the
horizontal section1) None
2) None
3) None4) Unbound except as indicated in the
horizontal section
Repair services n.e.c. of motor
vehicles, trailers and semi-
trailers on a fee or contractbasis(CPC  8867)1) None
2) None
3) None4) Unbound except as indicated in the
horizontal section1) None
2) None
3) None4) Unbound except as indicated in the
horizontal section
G. Pipeline Transport
a. Transport of fuels
Transportation of petroleum(CPC 71310)1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal section1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal sectionTN/S/O/ISR
Page 26Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Transportation of natural gas
(CPC 71310)1) Unbound
2) Unbound3) a. Operation of terminal or pipeline in
Israel  requires an Israeli incorporatedlegal entity.b. The Minister of National
Infrastructure may require that certain
office holders be Israeli citizens andresidents.   
4) Unbound except as indicated in the
horizontal section.1) Unbound
2) Unbound3) a. A possibility for non Israeli residents
or  citizens to control company directly orindirectly may be restricted.b. The Minister of National
Infrastructure may require that the
licensee’s registered office and the placewhere it conducts its on - going business bein Israel.
4) Unbound except as indicated in the
horizontal section
H. Services Auxiliary to All
Modes of Transport
a. Cargo handling services(CPC 741)1) None
2) None3) None
4) Unbound except as indicated in the
horizontal section1) None
2) None3) None
4) Unbound except as indicated in the
horizontal section
b. Storage and Warehouseservices
Bulk storage services ofnatural gases(CPC 74220)1) Unbound *
2) Unbound *3) The Minister of  National Infrastructure
may require that certain office holdersbe Israeli citizens and residents.
4) Unbound except as indicated in the
horizontal section.1) Unbound *
2) Unbound *3) a. Israeli incorporated legal entity.
b. The Minister of  NationalInfrastructure may require that the
licensee’s registered office and the place
where it conducts its on going business bein Israel.c. A possibility for non Israeli residentsor citizens to control company directly orindirectly may be restricted.
4) Unbound except as indicated in the
horizontal sectionTN/S/O/ISR
Page 27
ANNEX
ADDITIONAL COMMITMENTS ON BASIC TELECOMMUNICATIONS SERVICES
Scope
The following are definitions and principles on the regulatory framework for the basic
telecommunications services.
I. DEFINITIONS
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network of service that:
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or technically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of participation
(having regard to price and supply) in the relevant market for basic telecommunications services as a
result of:
(a) control over essential facilities; or
(b) use of its position in the market.
1. Competitive Safeguards
1.1. Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in, or continuing anti-competitive practices.
1.2. Safeguards
The anti-competitive practices referred to above shall include in particular:
(a) engaging in anti-competitive cross-subsidization;
(b) using information obtained from competitors with anti-competitive results; and
(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information which
are necessary for them to provide services.TN/S/O/ISR
Page 28
2. Interconnection
2.1. This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of another
supplier and to access services provided by another supplier, where specific commitments areundertaken.
2.2. Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided:
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its
own like services or for like services of non-affiliated service suppliers or for its
subsidiaries of other affiliates;
(b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rates, that are transparent, reasonable, having  regard to
economic feasibility, and sufficiently unbundled so that the supplier need not pay for
network components or facilities that it does not require for the service to be provided;
and
(c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of  necessary
additional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It is ensured, that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5 Interconnection: dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:(a) at any time; or(b)  after a reasonable period of time which has been made publicly knownto an independent domestic body, which may be a regulatory body as referred to in paragraph
5 below, to resolve disputes regarding appropriate terms, conditions and rates for
interconnection within a reasonable period of time, to the extent that these have not been
established previously.TN/S/O/ISR
Page 29
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are
administered in a transparent, non-discriminatory and competitively neutral manner and not moreburdensome than necessary for the kind of universal service defined by the member.
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision 
concerning an application for a licence; and
(b)  the terms and conditions of individual licence.
The reasons for the denial of licence will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services.  The decisions of and the procedures used by regulators shall be
impartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory
manner.
The current state of allocated frequency bands will be made publicly available, but detailed
identification of frequencies allocated for specific government uses is not required.
_______________TN/S/O/ISR
Page 30
ISRAEL – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
Film, Video andTelevision Programming
Co-production
and DistributionDifferential treatment is accorded
to works co-produced with
persons of countries with which
Israel may have co-productionarrangements, and to naturalpersons engaged in such co-productions, as well as to natural
and juridical persons engaged in
film and video distribution.All countries Indefinite For reasons of cultural policy,
including to improve the availability
of Israeli audiovisual productions in
Israel to promote greater diversityamong foreign audiovisual works onthe Israeli market, and to promote theinternational exchange of audiovisual
works.
Financial Services -
BankingA licence may be granted to the
establishment of foreign servicesupplier, to the country of originof which grants Israeli suppliers
access to its market in the form of
similar commercial presence.All countries Indefinite To obtain equal market access
possibilities for Israeli banks.
__________