WT/REG444/2  
 
2 December  2021 
(21-9080) Page: 1/4 
Committee on Regional Trade Agreements  Original: English  
 
 
FREE TRADE AGREEMENT BETWEEN UKRAINE AND ISRAEL  
(GOODS)  
QUESTIONS AND REPLIES  
 The following communication, dated 1 December 2021, is being circulated at the request of 
the delegations of  Ukraine and Israel . 
 
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Questions from Canada  
 
1.1.  "Article 1.2 Definitions  
(n) measure covers any measure whether in the form of a law, regulation, rule, procedure, 
decision, administrative action, practice or any other form;"  
 
 Could the Parties please provide an example of a measure that falls under the 
category of "other form? " 
 
Response from the Parties  
 
 Article 1.2 of the Ukraine -Israel FTA defines "measure" in a wide manner, in accordance with 
a language used in the WTO Agr eement and also in many bilateral free trade agreements, for 
example CIFTA.  
 
1.2.  "Article 1.7 Extent of obligations   
 
Each Party shall ensure that the necessary measures are taken in order to give effect to 
the provisions of this Agreement, including their obs ervance by the regional and local 
governments and authorities within its territory."  
 
 Could the Parties please provide an example of a measure that could be taken to 
ensure observance by regional and local governments?  
 
Response from the Parties  
 
 As in the previous question, this language reflects standard practice in FTA drafting. In relation 
to Israel, there is no regional level of government (only local). In general, the provision aims to 
ensure that all levels of government are committed to the  FTA, so as to prevent circumvention.  
 
 Regional and local authorities act in accordance with the legal framework and within it. The 
Ukrainian Parliament has ratified this Agreement  by the Law of Ukraine , and similarly the Agreement 
was ratified in Israel . Therefore, at all levels of government, the authorities must abide by its 
provisions.  
 
1.3.  Article 7.19 outlines a dispute settlement process based on consultation and panel 
reviews. Paragraph 7.19.21 also states:  
"At any time, the Parties may have recourse  to means of alternative dispute settlement 
resolution to resolve a matter, including good offices, conciliation, or mediation."  WT/REG444/2  
 
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  a. Why is Chapter 7 (Trade and Environment) exempt from coverage under 
Chapter  10 (Dispute Settlement)?  
Response from the Parties  
 
 Article 10.2 of the Ukraine -Israel FTA provides that Chapter 10 (Dispute Settlement) is not 
applicable to Chapter 7 (Trade and Environment) since there is a Dispute Resolution Article in 
Chapter 7 (Article 7.19).  Article 7.19 serves as a solid basis for the Parties to reso lve disputes and 
provides a clear and comprehensive description of the procedures the Parties shall follow in case of 
a dispute.  
 
b. Why is enforceability limited to the dispute settlement mechanisms  listed above?  
Response from the Parties  
 
 It is not clear to us which dispute settlement mechanisms are referred to. However, 
Article  7.19.19 describes the process if the final report of a Review Panel determines that a Party 
has not complied with its obl igations under Chapter 7.  
 
1.4.  Article 7.13.2 states:  
"The Parties shall strive to strengthen their cooperation on environmental issues in other 
bilateral, regional, and multilateral forums in which they participate."  
 
Article 7.1.1 also recognizes the Partie s' right to affirm international environmental 
obligations under multilateral agreements to which they are a party.  
 
a. Which particular forums do the Parties intend to use to cooperate on 
environmental issues?  
Response from the Parties  
 
 The Parties intend to use all relevant forums for cooperation.  Bilaterally, the Trade and 
Environment Subcommittee established under the FTA provides an appropriate institutional 
framework to discuss trade -related environmental issues.  
 
b. Why have the Parties omitted an y measureable commitments under 
international agreements such as the Paris Agreement or other MEAs?  
Response from the Parties  
 
 Under Article 7.1 the Parties affirm their international obligations under multilateral 
environmental agreements to which they a re a party. In addition, Article 7.17 clarifies that Chapter  7 
(Trade and Environment) does not affect the existing rights and obligations of either Party under 
international environmental agreements.  
 
1.5.  "Article 8.1 Publication  
The Parties shall publish or  otherwise make publicly available their laws, regulations, 
judicial decisions, administrative rulings of general application and their respective 
international agreements, that may affect the operation of this Agreement."  
 
 Could the Parties please provid e more details as to what type of measures could be 
considered as measures that "may affect the operation of the Agreement", and the criteria 
used to assess if a measure does so?  
 
Response from the Parties  
 
 By the term "may affect" the Parties mean to indicate a broad scope of application. An example 
of such measure is legislation that relates to import or export laws.  
 
 WT/REG444/2  
 
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  1.6.  "Article 9.3: Functions of the Joint Committee  
1. The Joint Committee shall:  
(…) 
(c) evaluate the results obtained from the application of this Agreement, in particular the 
evolution of trade and economic relations between the Parties;"  
  
 Could the Parties please provide further details on the type of evaluations that will 
be conduct ed to assess the results of the application of the Agreement, e.g. what criteria 
will be used, and will this evaluation be conducted solely on the bilateral economic 
relationship or will other issues also be covered?  
 
Response from the Parties  
 
 The Parti es intend to evaluate the results obtained from the application of the agreement by 
reviewing trade statistics  (as reflected in statistical indicators of exports, imports and trade balance 
between  the countries), data on usage of concessions, trade -barrier  issues raised by the trade 
community and any other topic as mutually agreed. Such data will be geared mainly to the bilateral 
relationship, but wider aspects, such as trends in the Parties ' trade with the world, may also be 
reviewed.  
 
1.7.  "Article 9.3: Functi ons of the Joint Committee  
1. The Joint Committee shall:  
(…) 
(g) keep under review the possibility of further removal of obstacles to trade between the 
Parties ;" 
 
 Could the Parties please explain how this provision will be implemented in practice?  
 
Response from the Parties  
 
 The objective of this article is to provide the Parties with a framework that will allow them to 
discuss all trade -related matters, including obstacles to trade, and to promote adequate solutions to 
these obstacles. This can be done through the Joint Committee, subcommittees, ad -hoc working 
groups, etc. As preparation to such meetings, the Parties may consult relevant stakeholders, 
including the economic operators and trade communities.  
 
Question s from the delegation of China  
 
1.8.  It has been almost  one year since the FTA between Ukraine and Israel  enter ing into 
force on 1 January  2021. How do the parties evaluate the implementation effect of the 
FTA since its entry into force? Which sectors have regis tered rapid growth on trade in 
goods?  
Response from the Parties  
 
 The agreement entered into force less than a year ago, it is thus too short  a period to fully 
evaluate implementation of the agreement for both countries . In addition, much like in 2020, this 
year as well, global trade was impacted by the emergency -state global pandemic, causing difficulties 
in analysing the immediate effects of th e agreement.  
1.9.  Could the Ukrainian  side and Israeli  side elaborate  the differences of the 
liberalization level between the Ukraine -Israel FTA and other FTAs signed by Ukraine  and 
Israel.  
Response from the Parties  
 
 Similar to other FTAs of Israel and Ukraine , the agreement covers substantially all trade 
between the countries. Naturally, every agreement is slightly different in the level of liberalization , 
which reflects the specific interests which different countries might have in trade with their partners.  WT/REG444/2  
 
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  1.10.   As mentioned in paragraph 2.4 of the factual presentation , Ukraine and Israel  have 
agreed to commence negotiations on further liberalization on trade in services within 
2 years of the entry into force of the Agreement.   
 Could the parties introduce their p lans on this issue ? 
 
Response from the Parties  
 
 The parties are currently engaged in consultations to further settlement of issues concerning 
initiation negotiations on further liberalization on trade in services.  
 
1.11.   As mentioned in paragraph 3.23 to 3.30  of the factual presentation , as both Ukraine 
and Israel are parties to the Regional Convention on Pan -Euro -Mediterranean Preferential 
Rules of Origin (" the Convention "), they apply the special rules of origin set out in the 
Convention.  
 If Ukraine and Israel enter into an FTA with a member who is not a party to the 
Convention , in what aspects of the rules of origin will be bound or affected by rules  set 
out in the Convention ? 
 
Response from the Parties  
 
 The rules of origin set out in the PEM Convention are applicable to the FTA between Israel and 
Ukraine and to bilateral trade under the agreement. The agreement also lays the base for diagonal 
cumulation with third parties according to the PEM rules, vis-à-vis other Parties to the PEM 
Convention (currently awaiting completion of relevant notification procedures). In general, each FTA 
has its own set of rules of origin and therefore, the rules set in this agreement should not impact 
other FTAs of Israel or U kraine with a third party which is not a party to the Convention.  
 
Question s from the delegation of Japan  
 
1.12.   Key Facts:  
a. What were the main reasons for taking two years from the signing of the 
Agreement to the entry into force?  
Response from the Parties  
 
 The entry into force derived from the period it took both countries to complete the internal 
processes in order to ratify the agreement.  
 
b. What were the main reasons why the negotiation has taken for approximately 
15 years to be signed?  
Response f rom the Parties  
 
 The negotiations between Israel and Ukraine officially began in 2013, but were halted for 
several years due to various internal constraints. The negotiations resumed at the end of 2015 and 
the agreement was  signed in January 2019.  
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