RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG65/3
15 March 2000
(00-1048)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN ISRAEL AND POLAND
Communication from the Parties
The following communication has been received from the Permanent Missions of Turkey and
the Slovak Republic with the request that it be circulated to Members.
_______________
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership, Dates of Signature, Ratification and Entry into Force
The Parties to the Agreement are the State of Israel and the Republic of Poland.  The
Agreement applies to the customs territories of the State of Israel and the Republic of Poland.
The Agreement was signed on 21 July 1997 and was applied provisionally since
1 March 1998.  The Agreement was ratified by the State of Israel on 8 December 1998 and by the
Republic of Poland on 7 April 1999, and entered into force on  1 May 1999.
The Agreement was notified to the Council on Trade in Goods on 18 December 1998, in
accordance with Article XXXIV:7(a) of GATT 1994.
2. Type of Agreement
The Agreement creates a free trade area in conformity with the definition set out in
Article XXIV: 8(b) of GATT 1994.
3. Scope
The Free Trade Agreement provides the framework for future relations between the State of
Israel and the Republic of Poland.
The Agreement covers all trade in industrial products (Chapters 25-97 of the Harmonized
System, HS), and substantially all trade in agriculture products (HS Chapters 1-24).  The productscovered are products originating in the State of Israel and the Republic of Poland according to the
rules of origin laid out in the Agreement.
The agricultural products covered by the Agreemen t are those listed in Annex A to Protocol 2
of the Agreement for the Republic of Poland and Annex B to Protocol 2 of the Agreement for theState of Israel.WT/REG65/3
Page 2
Article 11.2 of the Agreement 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:
Republic of Poland - Imports from Israel
(US$)
Total Trade Trade Covered % of Trade Covered
1995 66,065,730 64,065,730 97
1996 84,673,141 82,253,141 97.5
1997 104,760,370 101,760,370 97.1
State of Israel - Imports From Poland
(US$)
Total Trade Trade Covered % of Trade Covered
1995 22,965,743 22,884,227 99.6
1996 16,679,848 16,322,403 97.8
1997 17,349,333 16,686,420 96.2
Detailed statistics can be found in the Annex.
II. TRADE PROVISIONS
1. Import Restrictions
1.1 Duties and charges
In accordance with Article 3.2 of the Agreement and as prescribed in its Protocol 1, customs
duties on all originating goods listed in HS Chapters 25-97, except those listed in Annex I of the
Agreement and in Annex A, B, C1, C2, D1, D2, E, F, G, H and I of Protocol 1 of the Agreement, shall
be abolished on the date of entry into force of the Agreement.
Customs duties on products listed in Annex A and F of Protocol 1 of the Agreement shall be
progressively reduced by the Parties in accordance to the timetables listed in Protocol 1 of the
Agreement and finally eliminated by 1 January 1999.
Customs duties on products listed in Annex B, D1, and D2 of Protocol 1 of the Agreement
shall be progressively reduced by the Republic of Poland in accordance to the timetables listed inProtocol 1of the Agreement and finally eliminated by 1 January 2000.
Customs duties on products listed in Annex C1 and C2 of Protocol 1 of the Agreement shall
be progressively reduced by the Republic of Poland in accordance to the timetables listed in
Protocol 1 of the Agreement and finally eliminated by 1 January 2002.WT/REG65/3
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Customs duties on products listed in Annex F of Protocol 1 of the Agreement shall be
progressively reduced by the Republic of Poland in accordance to the timetable listed in Protocol 1of
the Agreement and finally eliminated by  1 January 2001.
Customs duties on products listed in Annex H of Protocol 1 of the Agreement shall be
progressively reduced by Israel in accordance to the timetable listed in Protocol 1of the Agreement
and finally eliminated by 1 July 1999.
Customs duties on products listed in Annex G of Protocol 1 of the Agreement shall be
progressively reduced by Israel in accordance to the timetable listed in Protocol 1of the Agreement
and finally eliminated by 1 January 2000.
Customs duties on products listed in Annex G of Protocol 1 of the Agreement shall be
progressively reduced by Israel in accordance to the timetable listed in Protocol 1of the Agreement
and finally eliminated by 1 January 2001.
In the case of agriculture products (HS Chapters 1-24) and Annex I of the Agreement,
specific concessions, in the form of preferential duty and/or tariff quotas, for a broad range of
products are listed in Annex A and B of Protocol 2 of the Agreement.
Article 11.3 of the Agreement provides that agricult ural products not listed in Protocol 2 shall
be traded in accordance with the provisions of the WTO/GATT 1994 Agreements and with therespective commitments of each party within the framework of the WTO Agreement on Agriculture.
Article 5.2 of the Agreement provides that all charges having an effect equivalent to customs
duties on imports on goods listed in Chapter 25-97 except for those listed in Annex I shall be
abolished on the date of the entry into force of each Agreement.
1.2 Quantitative restrictionsArticle 8 of the Agreement provides that no quantitative restrictions or measures having
equivalent effect on imports shall be applied in trade between the Parties, except for those listed in
Annex II to the Agreement.
2. Export Restrictions
2.1 Duties and charges
Article 7 of the Agreement provides that no customs duties on exports or charges having
equivalent effect shall be applied in trade between the Parties.
2.2 Quantitative restrictionsArticle 9 of the Agreement provides that no quantitative restrictions or measures having
equivalent effect on exports shall be applied in trade between the Parties, except for those listed inAnnex III of the Agreement.
3. Rules of Origin
Protocol 3 of the Agreement 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;  orWT/REG65/3
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- each of the non-originating materials used in the production of the good undergoes
an applicable change in tariff classificatio n 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.
In addition, the rules of origin provide for up to 10 per cent tolerance for non-originating
materials country 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 Annex I and Annex II of Protocol 3 of
the Agreement, are identical to the new European rules of the European Community (EC), in order to
facilitate cumulation of origin with the EC and with other countries maintaining free-trade area
agreements with the State of Israel and the Republic of Poland.
4. Standards
4.1 Technical barriers to trade
Article 23 of the Agreement stipulates that this area in the Parties’ relations shall be governed
by the WTO Agreement on Technical Barriers to Trade.
 
4.2 Sanitary and phytosanitary measures
Article 13 of the Agreement provides that the Parties shall apply their sanitary and
phytosanitary measures in accordance with the provisions of the WTO Agreement on the Application
of Sanitary and Phytosanitary Measures.  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 30 of the Agreement establishes the administration procedures for the application of
safeguard measures between the Parties in the case of emergency action on import of particular
products-general safeguards (Article 26), measures related to re-export and serious shortage
(Article 28) and in failure of a Party to fulfill an obligation under the Agreement (Article 29).
Article 26.1 of the Agreement 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 cause or
threaten to cause:
- serious injury to domestic producers of the like or directly competitive products in the
territory of the importing Party; orWT/REG65/3
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- serious disturbances in any sector of the economy or difficulties which could bring
about serious deterioration in the economic situation of a region.
Article 26.2 of the Agreements provides that 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 threatthereof, the product of the Party shall be exempted from any safeguard measures that may be imposed
with respect to imports of that product from third countries.
Article 27 of the Agreement 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 be applied for a period not exceeding five years and should cease to apply
at the expiration of the transitional period.
Article 31.1 of the Agreement 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 31.2 of the Agreement allows
the Parties to adopt restrictive measures in accord ance with the conditions laid down in the framework
of WTO/GATT 1994.
6. Anti-Dumping and Countervailing Measures
Article 24 of the Agreement 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 may
take appropriate measures against that practice in accordance with the WTO Agreement onImplementation of Article VI of the GATT 1994.
 
7. Subsidies and State-Aid
Article 21 of  the Agreement refers to state aid:
- Article 21.3 of the Agreement provides that the Parties shall ensure transparency in
the area of state aid, in accordance with the provision of the Agreement on Subsidiesand Countervailing Measures and the WTO/GATT 1994.
- Article 21.4 of the Agreement provides that measures taken must be under the
condition of and in accordance to the procedure laid down in Article 30 of the
Agreement. Such appropriate measures may only be taken in conformity with theprocedures and under the conditions laid down by the Agreement on Subsidies and
Countervailing Measures and the WTO/GATT 1994.
8. Sector-Specific Provisions
The Agreement does not contain sector-specific provisions.
 WT/REG65/3
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9. Other
(i) Customs Cooperation
Protocol 3 of the Agreement includes the related methods of co-operation in customs
administration, with particular regards to the method of co-operation in the administration of the rulesof origin.
(ii) State MonopoliesArticle 18.1 of the Agreement, 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 exist between nationals of the Parties.
(iii) Competition PolicyArticle 20 of the Agreement relates to the rules of competition.  Article 20.5 of the Agreement
states that in regards to activities under the Ag reement 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.
(iv) Internal Taxation
Article 15 of the Agreement prohibits any measures or practice of internal fiscal nature
establishing discrimination between the products originating from either Party. This Article also
prohibits repayment of internal taxation in excess of the amount of indirect taxes.
(v) PaymentArticle 19 of the Agreement 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.
(vi) Public Procurement
On public procurement, under Article 22.2 of the Agreement, the Parties shall progressively
develop their respective regulations for public procurement with a view to grant suppliers of the other
Party no later than 31 December 2000, 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.
Under Article 22.3 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 of 22.2 so as to ensure free access, transparency and a mutual opening of
their respective public procurement markets.WT/REG65/3
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(vii) Intellectual Property
On intellectual property, under Article 25.1 of the Agreement, the Parties shall grant and
ensure adequate, effective and non-discriminatory protection of intellectual rights, including measures
for the grant and enforcement of such rights.  The parties confirm their will to respect the conventions
on intellectual property which are specified in Annex IV of the Agreement and to accede to them by
1 January 2001.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
In accordance with Article XX of GATT 1994, Article 16 of the Agreement allows
restrictions on imports, exports or goods in transit justified on grounds of public morality, public
policy or public security; protection of health and life of 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 naturalresources.
Article 17 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 Agreement provides that for a dispute settlement process to deal with any
dispute relating to the application or the interpretation of the Agreement either through the JointCommittee by decision or through a panel of three arbitrators by majority, within a 90 day period or
within such longer period as may be agreed by the Joint Committee.
4. Relations with Other Trade Agreements
The Agreement incorporates 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 Implementation of Article VI of the GATT1994, the Agreement on Agriculture andthe Agreement on Sanitary and Phytosanitary Measures.
As mentioned in section IV, for protection of intellectual property the Agreement relates to
the multilateral agreements listed in Annex III of the Agreements.
5. Institutional framework
Article 33 of the Agreement establishes 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 Agreement.  It sha ll examine any issue arisin g from the agreement and
any other trade or economic issue of mutual interest.WT/REG65/3
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The Joint Committee may take decisions in the cases provided for in the Agreement 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/REG65/3
Page 9
ANNEX
Imports to Israel from Poland
(US$)
HS Chapter 1995 1996 1997
1 1,913,400 3,627 285,301
20 0 0
3 0 0 112
40 0 0
50 0 0
6 1,694 33,818 25,816
70 2 5 0
8 76,406 216,476 369,904
9 0 605 0
10 0 0 9,113
11 0 0 0
12 90 0 0
13 0 0 0
14 0 0 0
15 0 0 0
16 0 0 0
17 59,992 83,559 40,187
18 868,002 724,161 712,872
19 1,420 12,176 7,552
20 202,027 223,120 748,134
21 5,220 17,664 9,970
22 21,447 17,795 35,389
23 18,316 22,196 20,131
24 0 0 0
25 9,272 45,920 0
26 0 0 0
27 0 0 0
28 494,267 612,876 920,023
29 356,234 0 233
30 4,369 1,303 1,167
31 12 0 0
32 0 283 0
33 0 78 1,380
34 1,151 0 0
35 0 0 0
36 0 0 0
37 326 1,186 3,420
38 600 701 2,224
39 5,207 27,040 85,088
40 296,087 1,659,403 395,735
41 56,579 0 0
42 223 517 18,800
43 0 0 120,385
44 877,251 116,654 223,557
45 0 0 0
46 0 250 6,367
47 0 0 0
48 3,007,344 1,207,155 482,212WT/REG65/3
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HS Chapter 1995 1996 1997
49 68,225 61,685 103,492
50 0 0 0
51 517,192 674,389 300,293
52 0 79 592
53 83,583 52,287 24,899
54 65,171 64,680 63,118
55 0 0 320
56 0 0 0
57 96 119 749
58 48,342 26,127 3,499
59 0 0 205
60 0 0 0
61 4,104 5,421 93,488
62 96,377 80,823 204,078
63 6,303 8,499 6,167
64 507 21,744 166,253
65 34,269 69,780 108,013
66 0 0 0
67 0 0 0
68 73,487 48,721 59,569
69 0 25,702 32,748
70 19,938 151,033 180,629
71 8,957 23,666 41,785
72 9,951,805 4,204,921 4,650,914
73 106,079 282,279 173,477
74 636,719 1,152,450 978,752
75 0 0 0
76 361,461 269,653 941,722
77 0 0 0
78 0 0 0
79 2,538 47,731 59,113
80 0 0 0
81 0 0 0
82 168,638 181,995 210,381
83 4,004 28,530 174,721
84 653,554 370,264 1,049,781
85 1,430,760 2,776,075 2,498,653
86 71,041 107,903 191,124
87 85,052 63,932 25,861
88 0 49,747 0
89 27,156 0 2,387
90 76,393 390,583 160,572
91 0 0 3,246
92 0 0 2,987
93 0 0 0
94 22,306 96,896 203,545
95 63,109 69,689 92,928WT/REG65/3
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HS Chapter 1995 1996 1997
96 29 20,904 14,200
97 1,612 222,953 0
Total 22,965,743 16,679,848 17,349,333
Total –
Agriculture3,168,014 1,355,222 2,264,481
Total –
Industrial19,797,729 15,324,626 15,084,852WT/REG65/3
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Imports to Poland from Israel
(US$)
CHAPTER 1995 1996 1997
01 10,480 2,552 0
02 0 0 0
03 4,701 4,287 22,167
04 67,208 347,896 328,386
05 0 0 0
06 21,929 103,664 134,601
07 90,055 105,252 180,619
08 1,001,496 3,267,008 3,032,343
09 52,910 196,063 109,012
10 0 26,400 1,294
11 1,089 0 310
12 51,918 120,470 424,593
13 0 1,705 0
14 0 0 0
15 0 2,014 1,518
16 4,356 34,603 0
17 412 1,781 180
18 18,208 28,008 150
19 9,083 12,668 15,088
20 5,951,377 9,427,849 10,449,313
21 5,753,290 5,289,907 9,669,264
22 16,070 286 0
23 1,901 1,498 19,800
24 0 0 0
25 2,379,899 1,476,393 1,232,430
26 0 0 0
27 802 0 17
28 480,558 762,551 646,901
29 1,678,569 1,212,484 1,628,089
30 568,168 433,300 378,832
31 887,170 1,178,324 1,807,584
32 1,064,015 1,236,692 1,290,826
33 81,658 142,569 182,561
34 4,831 37,660 14,615
35 520 4,872 5,047
36 0 11,620 0
37 614 134 45
38 5,930,438 5,279,721 5,744,977
39 3,715,922 5,345,174 5,944,151
40 23,735 26,746 54,501
41 0 0 17,200
42 4,648 144,478 2,834
43 0 0 0
44 1,349 1,255 43,652
45 0 0 0
46 0 0 0
47 0 19,768 0
48 216,571 292,978 449,817
49 230,860 131,463 194,526
50 0 0 0WT/REG65/3
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CHAPTER 1995 1996 1997
51 0 4,169 42,002
52 385,137 441,676 150,061
53 0 0 1,864
54 1,056,870 681,875 1,605,077
55 4,187 12,690 15,267
56 85,907 133,663 93,022
57 232 4,574 705
58 18 16,556 3,138
59 28,434 130,924 291,219
60 22,128 38,567 35,344
61 64,537 86,615 181,100
62 95,047 95,992 83,085
63 13,187 4,327 9,360
64 16,453 45,826 100,484
65 478 13,802 30,676
66 9,435 0 300
67 0 6,942 0
68 39,350 44,564 87,546
69 20,410 28,755 26,994
70 8,693 6,105 1,293
71 148,385 124,500 125,497
72 25,244 3,520 26,333
73 1,582,884 840,257 1,098,860
74 10 150 11,098
75 0 0 0
76 2,089,905 1,419,433 582,855
77 0 0 0
78 0 0 0
79 0 0 0
80 0 83 0
81 0 972,525 2,469
82 1,406,511 1,798,178 2,098,037
83 1,214,933 1,367,972 1,380,675
84 8,847,531 10,528,859 11,192,337
85 10,483,267 18,030,146 23,966,184
86 80 6,000 0
87 46,024 746,892 65,985
88 25 0 337
89 0 0 2359
90 7,454,432 10,098,352 17,057,499
91 303 696 3,892
92 0 0 0
93 334,198 32,377 22,450
94 45,660 113,065 185,250
95 45,585 29,665 83,316
96 153,127 45,524 25,572
97 10,007 5,136 16,486
00 306 96 21,069
Total 66,065,730 84,673,141 104,754,340
Total - Agri 13,056,483 18,973,911 24,388,638
Total - Ind 53,008,941 65,699,134 80,344,633
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