WT/REG444/1  
8 October  2021 
(21-6428) Page: 1/33 
Committee on Regional Trade Agreements    
 
FACTUAL PRESENTATION  
FREE TRADE  AGREEMENT BETWEEN UKRAINE  AND ISRAEL  
(GOODS ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade  Agreement between 
Ukraine  and Israel , has been drawn up by the WTO Secretariat on its own responsibility 
and in full consultation with the Parties. The factual presentation reproduces as closely 
as possible the terminology used in the Agreement and in the comments provided and 
does not imply official endorsement or accept ance by the Secretariat of such 
terminology. The report has been drawn up in accordance with the rules and procedures 
contained in the Decision for a Transparency Mechanism for Regional Trade Agreements 
(WT/L/671) and thus does not imply any value judgemen t by the Secretariat regarding 
the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Peter Milthorp 
(tel: +41 22 739 5016) . Any statistical questions arising from this report may be 
addressed to  Thakur Parajuli  (tel: +41 22 739 5473) . 
 
 
  WT/REG444/1  
 
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  Table o f Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 4 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ......................  6 
2.1   Background information  ................................ ................................ .............................  6 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  7 
3.1   Import duties and charges, and quantitative restrictions  ................................ .................  7 
3.1.1   General provisions  ................................ ................................ ................................ .. 8 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ .........  8 
3.1.3   Liberalization schedule ................................ ................................ .............................  9 
3.1.3.1    Ukraine  ................................ ................................ ................................ ..............  9 
3.1.3.2    Israel  ................................ ................................ ................................ ................  11 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ... 13 
3.2   Rules of origin  ................................ ................................ ................................ ..........  13 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  14 
3.4   Regulatory provisions of the agreement  ................................ ................................ ....... 15 
3.4.1   Customs -related procedures and trade facilitat ion................................ .......................  15 
3.4.2   Standards  ................................ ................................ ................................ .............  17 
3.4.2.1    Sanitary and phytosanitary measures  ................................ ................................ .... 17 
3.4.2.2    Technical barriers to trade  ................................ ................................ ....................  17 
3.4.3   Safeguard mechanisms  ................................ ................................ ...........................  19 
3.4.3.1    Global Safeguard Measures  ................................ ................................ ..................  19 
3.4.3.2    Bilateral safeguard measures  ................................ ................................ ................  19 
3.4.3.3    Balance of payments safeguards  ................................ ................................ ...........  20 
3.4.4   Antidumping and Countervailing Measures  ................................ ................................ . 20 
3.4.5   Subsidies and state -aid ................................ ................................ ...........................  20 
3.4.6   Other regulations  ................................ ................................ ................................ ... 20 
3.4.6.1    State Trading  ................................ ................................ ................................ ..... 20 
3.5   Sector -Specific Provisions of the Agreement  ................................ ................................ . 20 
4   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  20 
4.1   Transparency  ................................ ................................ ................................ ...........  20 
4.2   Current payments and capital movements  ................................ ................................ .... 21 
4.3   Exceptions  ................................ ................................ ................................ ...............  21 
4.4   Accession and withdrawal  ................................ ................................ ..........................  21 
4.5   Institutional framework  ................................ ................................ .............................  21 
4.5.1   Joint Committee  ................................ ................................ ................................ .... 21 
4.6   Dispute settlement  ................................ ................................ ................................ ... 22 
4.7   Relationship with other agreements concluded by the parties  ................................ ..........  23 
4.8   Government procurement  ................................ ................................ ..........................  24 
4.9   Intellectual property rights  ................................ ................................ .........................  25 WT/REG444/1  
 
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  4.10   Competition  ................................ ................................ ................................ ...........  25 
4.11   Environme nt ................................ ................................ ................................ ..........  25 
4.12   Labour  ................................ ................................ ................................ ..................  26 
4.13   Electronic co mmerce  ................................ ................................ ...............................  26 
4.14   Small and medium -sized enterprises  ................................ ................................ .........  26 
ANNEX 1  ................................ ................................ ................................ ........................  27 
ANNEX 2  ................................ ................................ ................................ ........................  31 
 
  WT/REG444/1  
 
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Key Facts  
 
Parties to the Agreement:  Ukraine and Israel  
 
Date of Signature:     21 January 2019  
 
Date of Entry into Force:  1 January 2021  
 
Date of Notification:   13 January 2021  
 
Full implementation:    1 January 2025  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Free Trade Agreement between Israel and Ukraine, hereinafter referred to as "the 
Agreement" is Israel's 10th, and Ukraine's 20th notified regional trade agreement .  
1.2.  In 2019, Israel's GDP was estimated at USD 394.65 billion, while that of Ukraine was 
USD 153.78  billion . The Parties trade (merchandise) to GDP ratio was 29 for Israel and 51.6 for 
Ukraine. Globally, Israel was the 33rd larges t export er and 27th largest importer, Ukraine was the 
36th larges t exporter and 30th largest importer  (excluding intra -EU trade) .1  
1.1  Merchandise  trade  
1.3.  In 201 8, Israel's merchandise exports amounted to USD 58.4 billion, representing 0.31% of 
global exports. Imports amounted to  76.5 billion, representing 0.4% of global imports. For Israel 
the main exports and imports were manufactures comprising 91.7% of exports (diamonds, gases 
and medications) and 75.7% of imports (petroleum, motor cars and diamonds). In the same year 
Ukraine' s merchandise exports amounted to USD 50.6 billion, representing 0.26% of global exports. 
Its merchandise imports amounted to USD 60.6 billion, 0.31% of global imports. For Ukraine 
manufactures (metals) were its largest export (47.2% of exports) and its la rgest imports (63.7%).  
1.4.  Based on 2019 data, Israel was Ukraine's 26th largest export destination (0.3% of total exports) 
and 16th largest source of imports (0.9% of total imports). For Ukraine, Israel was its 14th largest 
export destination (1.1% of global  exports) and 23rd largest source of imports (0.3% of global 
imports).  
1.5.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties for the period 200 5-
2020. While Ukraine experienced variable terms of trade, its global trade was mostly in deficit over 
the period. Over the period trade between the Parties was consistently in positive balance for 
Ukraine's exports to Israel  according to data from Ukraine although data from Israel seems to 
indicate a consistent a nd expanding deficit with trade with Ukraine in recent years2. Israel's global 
trade ha s been close to balanced, with an expanding deficit since 2015.  
 
1 Trade statistics exclude intra -EU trade. Source: WTO Trade Profiles (201 9 data); accessed in April 
2021. 
2 The discrepancy between the Ukrainian and Israeli data is due to the differences between import by 
country of origin and import by country of purchase. It seems that until 2017 the Israeli figures in UN  
Comtrade used the data based on country of purchase and from 2018 it used the data based on country of 
origin. According to import by country of origin, which in our opinion is the more accurate method to use, 
Israel' s trade with Ukraine was consistently i n deficit, similar to the Ukrainian data.  WT/REG444/1  
 
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  Chart 1.1 Ukraine - Israel : Merchandise bilateral trade a nd with world (2005 -2020)  
 
Source:  UNSD Comtrade database (For Ukraine (2019 -2020) from ITC Trademap).  
 
1.6.  The commodity structure of trade between Israel and Ukraine, as well as of their global trade 
in the period 201 8-2020, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. 
Israel's three largest export categories (chemicals, machinery and natural and cultured pearls) which 
accounted 65% of its global exports, are also Ukraine's largest imports from Isra el (accounting for 
66% of its imports from Israel. Of the Ukraine's four largest global exports of vegetable products, 
base metals, animal or vegetable fats and minerals (which accounted for 65% of its global exports), 
Israel's imports from Ukraine are dom inated by vegetable products and base metals (72% of imports 
from Ukraine), with prepared foods accounting for 12% of its imports from Ukraine.   
0.00.10.20.30.40.50.60.70.80.91.0
0102030405060708090100
2005 2007 2009 2011 2013 2015 2017 2019B. Israel 2005 -2020
(USD billions)
Imports from Ukraine (Right Axis)
Export to Ukraine (Right Axis)
Total Imports
Total Exports
0.00.10.20.30.40.50.60.70.80.91.0
0102030405060708090100
2005 2007 2009 2011 2013 2015 2017 2019A. Ukraine 2005 -2020 
(USD billions)
Imports from Israel (Right Axis)
Export to Israel (Right Axis)
Total Imports
Total ExportsWT/REG444/1  
 
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  Chart 1.2 Ukraine -Israel:  Product composition of merchandise trade, annual average 
(2018 -2020)  
 
Source:  UNSD Comtrade database (For Ukraine (2019 -2020) from ITC Trademap).  
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 21 January  2019 and entered into force on 01 January 2021 . It 
was notified to the WTO on 13 January 2021  under Article  XXIV:7(a) of GATT 1994 ( see document 
WT/REG444/N/1).  
2.2.  The text of the Agreement, together with its annexes, is available on the Parties' official 
websites:  
Ukraine:  https://zakon.rada.gov.ua/laws/show/376_001 -19#Text  
 
Israel : https://www.gov.il/BlobFolder/policy/isr -ukraine -fta/he/sahar -
hutz_agreements_israel -ukraine -fta-en.pdf  
 https://www.gov.il/BlobFolder/policy/isr -ukraine -fta/he/sahar -
hutz_agreements_ukraine -fta-export -Concessions -Final.pdf  
45
129844217Ukraine's imports from Israel (%)
21
21
13106654322224Ukraine's Global Imports (%)
24
21
1010974332225Ukraine's Global Exports (%)
51
2112333222Israel's imports from Ukraine (%)
24
12
12
107644443226Israel's Global Imports (%)
23
23
191055422224Israel's Global Exports (%)Total: USD 0.2 billion Total: USD 57.3 billion
Total: USD 74.4 billion Total: USD 56.7 billionTotal:  USD 48.9 billion
Total: USD 0.7 billion
WT/REG444/1  
 
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   https://www.gov.il/BlobFolder/policy/isr -ukraine -fta/he/sahar -
hutz_agreements_ukraine -fta-import -Concessions -Final.pdf  
2.3.  The Agreement consists of 12 Chapters, and several annexes which form an integral part of 
the Agreement (Box 2.1).  
Box 2.1 Structure of the Agreement  
Chapter  Titles  
Chapter 1 General Provisions  
Chapter 2 Trade in Goods  
Chapter 3 Customs Procedures  
Chapter 4 Trade Remedies  
Chapter 5 Sanitary and Phytosanitary Measures  
Chapter 6 Technical Barriers to Trade  
Chapter 7 Trade and Environment  
Chapter 8 Transparency  
Chapter 9 Administration of the Agreement  
Chapter 10 Dispute Settlement  
Chapter 11 Exceptions  
Chapter 12 Final Provisions  
 Annex 2 -A Exceptions to Article 2.6 (Import and 
Export restrictions) and 2.7 (National Treatment)  
 Annex 2 -B Exceptions to Article 2.4 (Duties on 
Exports)  
 Annex 2 -C Tariff Elimination Schedules of Israel and 
Ukraine  
 Appendix to Annex 2 -C TRQs for Israel  
 Annex 5 -A Competent Authorities  
 Annex 10 -A Rules of Procedure for Arbitral Tribunal 
Proceedings  
 Annex 10 -B Code of Conduct  
 Appendix to Annex 10 -B Undertaking in the  Matter of 
Proceeding  
Source:  The Agreement.  
2.4.  Article 1.5 of the Agreement contains a rendezvous clause on services, where the Parties have 
agreed to commence negotiations on further liberalization on trade in services within 2 years of the 
entry into force of the Agreement. According to the Parties, negotiations on services have not yet 
commenced.  
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.  Chapter 2 of the Agreement concerns trade in goods. Under Article 2.2 on customs duties 
except as otherwise provided in the Agreement, neither Party may increase any existing custom s 
duty or adopt any new customs duty or other charges that may have equivalent effect on an 
originating good of the other Party.    
3.2.  Concerning fees and charges for services rendered, each Party shall ensure that all fees and 
charges of any character (other t han customs duties and other duties and charges that are excluded WT/REG444/1  
 
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  from the definition of a customs duty) imposed on, or in connection with, importation of goods, shall 
be limited to the approximate cost of services rendered and shall not represent an indir ect protection 
of domestic goods or taxation of imports or exports for fiscal purposes (Article 2.11).  
3.3.  On import licensing, the Parties have agreed in Article 2.12 that no Party shall adopt or maintain 
a measure that is inconsistent with the WTO Agreement on Import Licensing Procedures (hereinafter 
referred to as the "Import Licensing Agreement ") which is incorporated into and made an integral 
part of the Agreement , mutatis mutandis.  
3.1.1   General provisions  
3.4.  In Chapter One, Article 1.1, the Parties have agreed to  establish a free trade area. The 
objectives of the Agreement are set out in Article 1.1(a) to (d) and relate to the improvement of 
living standards of the populations of the Parties  through trade, elimination of barriers to trade and 
facilitation of the m ovement of goods, to promote fair economic competition between the Parties 
and to contribute to the harmonious development and expansion of world trade through removal of 
barriers to trade. Definitions use d in the Agreement are set out in Article 1.2.  
3.5.  Each Party shall accord national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994, including its Interpretative Notes  (Article 2.7) . Article III of the GATT 
and its Interpretative Notes are incorporated into the Agreeme nt, mutatis mutandis. This does not 
apply to measures set out in Annex 2 -A. 
3.6.  Annex 2A sets out exceptions retained by Israel to Articles 2.6 (Import and Export Restrictions) 
and 2.7 (National Treatment). The Annex provides that these Articles do not apply t o  
(a) a measure, including that measure 's continuation, prompt renewal or amendment, in 
respect of the following:  
i. controls and charges maintained by Israel on the export of metal waste and scrap; or  
ii. subject to Israeli law, imports of non -kosher meat; and  
(b) an action authorized by the Dispute Settlement Body of the WTO in a dispute between the 
Parties under the WTO Agreement.  
3.7.  Annex 2A does not contain any reservations by Ukraine.  
3.8.  The Parties have in Article 1.4.1 reaffirmed their existing rights and obli gations in respect of 
each other under the WTO Agreement and other agreements to which the Parties are party. In 
Article  1.4.2 the Parties agree that in the event of any inconsistency between the Agreement and 
the agreements covered by Article 1.4.1, the A greement will prevail.  
3.1.2   Liberalization of trade and tariff lines  
3.9.  Article 2.2.1 of the Agreement provides that upon entry into force of the Agreement, the Parties 
shall eliminate all customs duties on imports of goods classified under Chapters 1 through 97 of the 
Harmonized System (HS), originating in the Parties except as otherwise provided for in their Tariff 
Schedules to Annex 2 -C (Tariff Elimination).  Neither Party may increase any existing customs duty 
or adopt any new customs duty except as otherwise p rovided in its Tariff Schedules to Annex 2 -C. 
In Article 2.2.3 the Parties have expanded upon Article 2.2.2 and have agreed that  a Party may (a) 
modify outside this Agreement its tariffs on goods for which no tariff preference has been established 
under the Agreement;  (b) increase a customs duty to the level established in its Tariff Schedules to 
Annex 2 -C (Tariff Elimination) following a unilateral reduction; and  (c) maintain or increase a 
customs duty as authorised by the Dispute Settlement Body of the WT O or as permitted by any 
agreement under the WTO Agreement.  
3.10.  Article 2.3 of the Agreement provides that for each good the basic duty to which reductions 
and commitments shall apply is the MFN duty which was in force on 1 January 2015. During the 
tariff elim ination process each Party shall apply to originating goods traded between the Parties the WT/REG444/1  
 
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  lesser of the customs duties resulting from a comparison between the rate established in accordance 
with its Annex 2 -C tariff schedule and the applied MFN rate (Arti cle 2.3.2).  
3.11.  Annex 2 -C sets out lists of tariff concessions made in respect of the goods of the other Party, 
according to categories. Concessions under the Agreement are listed in categories which determine 
the staging and phasing of the concessions.  
3.12.  The base rate of customs duty and category for determining the rate of customs duty at each 
stage of reduction for an item are indicated for each item in the Parties Schedule s. 
3.1.3   Liberalization schedul e 
3.1.3.1   Ukraine  
3.13.  Table 3.1 below shows the tariff liberalization undertaken by Ukraine under the Agreement. 
Prior to entry into force of the Agreement, Ukraine's MFN tariff contained 4,092 tariff lines  (38.1% 
of the tariff) that were duty free on an MFN basis,  representing  69.8% of its imports from Israel 
during 2018 -2020.3 With the entry into force of the Agreement an additional 3,223 lines became 
duty free representing an additional 14.2% of Ukraine's imports from Israel. Following full 
implementation of Ukraine's commit ments under the Agreement  in 2025 , 16.5% of lines in Ukraine's 
tariff will remain dutiable, representing 1,771 lines and 0.4% of Ukraine's imports from Israel.  
Table 3.1 Ukraine: Tariff elimination commitment s under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in Ukraine's tariff schedule  Ukraine's imports from 
Israel (2018 -20)a 
Number  % Value  
(USD million)  % 
2021 (MFN)  4,092  38.1  122.0  69.8  
2021  3,223  30.0  24.7  14.2  
2023  969 9.0 21.7  12.4  
2025  676 6.4 5.7 3.2 
Remain dutiable  1,771  16.5  0.7 0.4 
Total  10,731  100.0  174.8  100.0  
a Import coverage is from HS chapters 1 -97. 
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by Ukraine and from WTO -IDB. 
 
3.14.  Table 3.2 shows tariff elimination by Ukraine under the Agreement by broad HS Section. The 
lines remaining dutiable once the Agreement is fully implemented are mainly for agricultural impor ts 
(HS Sections I -IV) as well as some lines in HS Sections VI and XIV.  The average preferential rate 
for the lines remaining dutiable range from 2.5% in HS Section VI to 11.8% for HS Section II.  
Table 3.2 Ukraine: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Duty Free Lines  Under 
the Agreement  Remain 
Dutiable 
Lines  Avg 
(dutiable)  Avg. 
Tariff 
(%) Number 
of Lines  Duty free 
Lines  2021  2023  2025  
I 6.5 1,006  365 19 2 1 619 10.5 
II 9.0 589 147 15 28 43 356 11.8 
III 9.2 150 23 12   115 11.4 
IV 9.5 940 96 99 56 25 664 11.4 
V 2.6 300 124 140 22 14   
VI 3.3 1,355  511 825 10 6 3 2.5 
 
3 In 2021 Ukraine's MFN tariff had 10,731 lines at the HS 10 -digit level of which 98.78% had ad valorem  
rates of duty, while 131 lines had specific rates.  WT/REG444/1  
 
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  HS 
Section  MFN 2021  Duty Free Lines  Under 
the Agreement  Remain 
Dutiable 
Lines  Avg 
(dutiable)  Avg. 
Tariff 
(%) Number 
of Lines  Duty free 
Lines  2021  2023  2025  
VII 3.5 372 135 197 38 2   
VIII 6.0 136 15 83 33 5   
IX 0.8 235 200 31 4    
X 0.0 195 195      
XI 5.7 1,229  309 497 92 331   
XII 10.0 106  8 26 72   
XIII 7.1 273 28 102 134 9   
XIV 4.6 62 2 43 1 2 14 9.6 
XV 1.8 1,040  739 210 90 1   
XVI 2.7 1,690  807 663 181 39   
XVII 5.5 389 126 77 73 113   
XVIII 3.8 348 172 92 80 4   
XIX 6.2 66  65 1    
XX 5.5 243 91 45 98 9   
XXI 0.0 7 7      
Total  4.7 10,731  4,092  3,223  969 676 1,771  11.1 
Note:  For the calculation of averages, specific rates are excluded.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Ukraine and from WTO -IDB. 
 
3.15.  Chart 3.1 below shows the tariff lines which will remain dutiable under the Agreement 
following full implementation, by HS Chapter compared to the average MFN rates  applied  on those 
tariff lines . While in most cases the average preferential and MFN rates a re the same, additional 
preferences are provided in some Chapters, notably  chapter 35  (albuminoidal substances, modified 
starches, glues and enzymes) with an average preferential rate of 2.5% compared to the applied 
MFN average of 5% in 2021 . Other Chapter s in which preferential tariffs are lower than the MFN rate 
are 19, 20 and 21.  
Chart 3.1 Ukraine: Average of dutiable rates, by HS Chapter  
 
Note:  For the calculation of averages, specific rates are excluded.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Ukraine and from WTO -IDB. 
02468101214161820
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 35 71Average Duty Rate
HS ChapterPreferential MFNWT/REG444/1  
 
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  3.1.3.2   Israel  
3.16.  Table 3.3 below sets out  the tariff liberalization undertaken by Israel under the Agreement. 
Prior to entry into force of the Agreement, Israel's MFN tariff contained 5,729 tariff lines that were 
duty free on an MFN basis, representing 6 7% of its imports from Ukraine  during 2018 -2020.4 With 
the entry into force of the Agreement an additional 1,507 lines became duty free representing an 
additional 17.6% of Israel's historic imports from  Ukraine. Following full implementation of Israel's 
commitments under the Agreement  in 2027 , 6.8% of li nes in Israel's tariff will remain dutiable, 
representing 579 lines and 23% of Israel's imports from Ukraine . 
Table 3.3 Israel: Tariff elimination commitments under the Agreement and 
corresponding average trad e 
Duty phase -out period  Tariff lines in Israel's tariff schedule  Israel's imports from 
Ukraine (2018 -20)a 
Number  % Value  
(USD million)  % 
2021 (MFN)  5,729  67.0  497.6  74.5  
2021  1,507  17.6  6.3 0.9 
2023  440 5.1 4.7 0.8 
2025  272 3.2 4.2 0.6 
2027  23 0.3 1.4 0.2 
Remain dutiable  579 6.8 154.1  23.0  
Total  8,550  100.0  668.3  100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.   
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Israel.  
3.17.  Under the Agreement, Israel has liberalised trade across its tariff. Table 3.4 below shows the 
tariff lines which will remain dutiable under the Agreement following full implementation, by broad 
HS Section, compared to average applied MFN tariffs. Most lines remaining dutiable are found in 
agriculture (HS Sections I -IV) as well as a  few lines in HS Section VI and XIV. The average dutiable 
rates range from 10.3% in HS Section III to 92.8% in Section II. Specific rates of duty are applied 
in Section XX for which ad valorem  equivalents are not available.  
Table 3.4 Israel: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Duty Free Lines  Under the 
Agreement  Remain 
Dutiable 
Lines  Avg 
(dutiable)  Avg. 
Tariff 
(%) Number 
of Lines  Duty free 
Lines  2021  2023  2025  2027  
I 21.7 552 298 2  68  184 76.0 
II 47.7 460 164  22 52  222 92.8 
III 4.8 94 50    1 43 10.3 
IV 7.3 388 193 2 5 75 4 109 18.1 
V 0.3 171 164 7      
VI 1.2 988 866 115  3  4 30.0 
VII 3.8 330 192 127 11     
VIII 1.1 78 70 8      
IX 0.2 121 119 2      
X 3.4 176 119 53 1 3    
XI 0.6 1,215  1,152  50 4 9    
XII 0.9 50 46 4      
 
4 In 2021 Israel had 8,550 tariff lines in its MFN tariff a t the HS eight -digit level. Of these 95.11% had 
ad valorem  rates of duty. Of the remaining 418 lines 75 had specific rates of duty and 358 lines mixed rates of 
duty. WT/REG444/1  
 
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  HS 
Section  MFN 2021  Duty Free Lines  Under the 
Agreement  Remain 
Dutiable 
Lines  Avg 
(dutiable)  Avg. 
Tariff 
(%) Number 
of Lines  Duty free 
Lines  2021  2023  2025  2027  
XIII 5.1 246 115 117 7 6 1   
XIV 4.2 79 45 23    11 11.1 
XV 3.3 1,062  660 350 52     
XVI 3.9 1,559  940 410 181 28    
XVII 3.9 383 179 150 50 4    
XVIII 2.7 337 221 69 46 1    
XIX 0.5 23 22  1     
XX 5.8 218 103 15 60 17 17 6 * 
XXI 4.8 20 11 3  6    
Total  6.4 8,550  5,729  1,507  440 272 23 579 63.5 
*  Tariff lines subject to specific duties only.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Israel.  
 
3.18.  Chart 3.2 shows average preferential and MFN rates for tariff lines remaining dutiable in 
Israel's tariff by HS Chapter. Additional preferences are provided by Is rael in a number of Chapters 
relating to agricultural products, notably Chapter 1 (average preferential rate of 69.4% compared 
to an MFN average of 80.4%), and Chapter 7 (average preferential rate of 106.4% compared to an 
MFN average of 110.1%). Other chap ters for which the average preferential rate is lower than the 
MFN average on corresponding products are HS 2,  3, 4, and 8.  
Chart 3.2 Israel: Average of dutiable rates, by HS Chapter  
 
* Tariff lines subject t o specific duties only.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Israel.  
020406080100120140160180
01 02 03 04 05 06 07 08 09 10 11 12 14 15 16 19 20 21 22 23 35 71 94*Average Duty Rate
HS ChapterPreferential MFN
* Tariff lines subject to specific duties onlyWT/REG444/1  
 
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  3.1.4   Tariff rate quotas  
3.19.  Article 2.14 and Annex 2 -C of the Agreement concern tariff rate quotas  (TRQs) . In Article 2.14 
the Parties have agreed that each Party shall implement and administer the TRQs set out in its Tariff 
Schedule to Annex 2 -C (Tariff Elimination) under Article XIII of the GATT 1994, including its 
Interpretative Notes, and the Agreement on Import Licensing Procedures , contained in Annex 1A to 
the WTO Agreement. Upon a request from the exporting Party, the importing Par ty shall provide 
information regarding the administration of its tariff rate quotas to the exporting Party.  
3.20.  An Appendix to Annex 2 -C sets out aggregate quantities of TRQ s for imports into Israel (as 
set out in the Annex 2 -C tariff commitments of Israel5). The list of 109 products including meat, 
certain fruit and vegetables, eggs, and certain juices is subject to zero rates of in -quota duties, while 
for most products the out of quota rate is the MFN applied duty. The quota quantities appear to be 
fixed an d are not increased over time.  
3.21.  Under the Agreement Ukraine has inscribed no TRQ s in respect of its tariff schedule in 
Annex  2-C. Ukraine has notified to the WTO6 that it maintained one TRQ in respect of raw cane sugar 
but did not apply the TRQ.  
3.22.  Israel has notified to the WTO that it applied tariff quotas in respect of 12 types of agricultural 
products .7 Under the Agreement  however , Israel has the right to apply TRQs in respect of a larger 
range of agricultural products (WTO definition), which are listed in Table A2.1 of Annex 2 to this 
Factual Presentation.  According to the Parties, the TRQs in the Agreement are not related to Israel's 
(WTO) TRQs.   
3.2  Rules of origin  
3.23.  Both Parties to the Agreement are also party to the Regional Convention on Pan -euro-
Mediterranean Preferential Rules of Origin (hereinafter referred to as "the Convention") .8 
Article  2.13.1 of the Agreement provides that the rules of origin and methods of administrative 
cooperation applicable between the Parties are set out in Appendix I and relevant provisions of 
Appendix II of the Convention. Accordingly, the Agreement itself contains no provisions on rules of 
origin.9 
3.24.  Product -specific rules of origin10 represent the minimum working or processing required to be 
carried out on  non-originating materials for the resulting product to achieve originating status. For 
most HS Chapters covering agricultural products, the products are originating if they are wholly 
obtained or if their transformation involves a change in tariff classif ication (CTC). For a large number 
of industrial and some agricultural products,  third-party material s, ranging generally11 from 10% to 
50% of the ex -works price of the final product is required for products to meet the rules of origin 
requirements . Specifi ed manufacturing or processing operations are required for some products 
(some prepared foods; textiles, or chemical products, for example).  
3.25.  Non-originating materials which do not meet the rules of origin requirements may 
nevertheless be used if their tot al value does not exceed 10% of the ex -works price of the product 
and any of the percentages given in the list in Annex II of the Convention for the maximum value of 
non-originating materials are not exceeded.  
3.26.  Under the Convention diagonal cumulation appl ies to the Parties if an FTA is applicable 
between all Contracting Parties concerned. Diagonal cumulation allows materials that have obtained 
 
5 See Annex 2 to this Factual Presentation.  
6 Ukraine's latest notification of applied tariff quotas to the WTO (2021) is contained in 
WT/AG/N/UKR/40.  
7 Israel's latest notification of applied tariff quotas to the WTO (2019) is contained in document 
WT/AG/ N/ISR/78 .  
8 Israel since 1.1.2006 and Ukrain e since 1.1.2019.  
9 Article 2.13.4 however provides that if a Party notifies its intention to withdraw from the Convention, 
the Parties shall immediately enter into negotiations on rules of origin for the purpose of implementing the 
Agreement.  
10 See Arti cle 5 and Annex II to the Convention.  
11 For HS Sub -Heading 20.08 the threshold is set at 60%. For HS Sub -Headings 24.02 and 24.03 the 
threshold is set at 70%).  WT/REG444/1  
 
- 14 - 
 
  originating status in one of the Contracting Parties may be incorporated in products manufactured 
in another Contr acting Party without the products losing their originating status when exported to a 
third contracting party in the Euro -Mediterranean Zone. According to the P arties, diagonal 
cumulation is not yet in force as it is awaiting the finalisation of a procedure  by the EU12.  
3.27.  The principle of territoriality requires that the conditions for acquiring originating status are 
fulfilled without interruption in the exporting Party. If goods are re -imported they shall be considered 
non-originating unless it can be demon strated that the returning goods are the same as those 
exported and they have not undergone any transformation beyond that necessary to preserve them 
in good condition while in that country or while being exported.  Any working or processing carried 
out in a third party shall be under outward processing procedures (Article 11 of Appendix I). 
According to the Parties, since the rules of origin chapter in the Agreement is directly linked to the 
rules of origin set out i n the Convention, the only provision on outward processing is the one 
mentioned above. Drawback is not permitte d under the Convention  (Article 14 of Appendix I) . 
According to the Parties, for the purposes of applying the "principle of territoriality", suff iciency of 
operations with goods carried out outside the exporting Party shall be determined in accordance with 
the list set out in Annex II to Appendix I to the Agreement.  
3.28.  Exceptions to the provisions of the Convention under the Agreement include that  in any 
disputes with respect to the interpretation, application fulfilment or nonfulfillment of the provisions 
of Appendix I or Appendix II to the Convention that cannot be settled between the customs 
authorities of the Parties, the matter shall be submitted to the Subcommittee on Customs, Trade 
Facilitation and Rules of Origin established by the Joint Committee in accordance with Chapter 9 
(Administration of the Agreement) of the Agreement. If no solution is reached, Chapter 10 (Dispute 
Settlement) of the Agr eement shall apply. In addition , any dispute between the importer and the 
customs authorities of the importing Party shall be under the legislation of the said Party 
(Article  2.12.2).  
3.29.  The Parties have agreed to promote the use of Electronic Movement Certi ficates. The y have 
agreed in Article 2.13.3 that the provisions of the Convention regarding Movement Certificates EUR.1 
shall apply to Electronic Movement Certificates, mutatis mutandis . If one Party notifies its readiness 
to implement this Article, all th e technical issues related to such implementation (issuance, 
submission and verification of electronic movement certificate) shall be agreed upon and 
implemented by the customs authorities of both Parties as soon as possible. According to the Parties, 
discussions under Article 2.13.3(b) in relation to electronic EUR.1 certificates  have not commenced. 
Israel intends to apply the revised ("transitional") rules of origin in the future. This requires 
amendments to bilateral rules of origin protocols and is stil l under internal discussion in Israel.  
3.30.  If a Party does withdraw from the Convention under Article 2.13.4, until the entry into force 
of mutually agreed rules of origin the Parties have agreed to apply the rules of origin contained in 
Appendix I and, where  applicable, in Appendix II of the Convention allowing for the use of bilateral 
cumulation exclusively between the Parties.  
3.3  Export duties and charges, and quantitative restrictions  
3.31.  In Article 2.4 the Parties have agreed that each Party may apply duties, t axes or charges 
having equivalent effect on its exports, in accordance with their rights and obligations under the 
WTO Agreement  except as otherwise provided in Annex 2 -B.  Concerning fees and charges for 
services rendered, each Party shall ensure that all  fees and charges of any character (other than 
customs duties and other duties and charges that are excluded from the definition of a customs 
duty) imposed on, or in connection with, importation or exportation of goods, shall be limited to the 
approximate cost of services rendered and shall not represent an indirect protection of domestic 
goods or taxation of imports or exports for fiscal purposes (Article 2.11).  
3.32.  Annex 2 -B contains a list of 4  products that Ukraine has agreed to not apply export duties 
upon. Quantitative tonnage export limits set for the  concerned  products, wheat and meslin (HS 2012 
Code 1001 99 00 00 , up to 900 thousand tons ), certain iron and non -alloy steel bars and rod, hot 
 
12According to the Parties , currently  the provisions of the Regional Convention on Pan -Euro-
Medit erranean Preferential Rules of Origin ((№ 2020/С322/03) on diagonal cumulation between States Parties 
to the Convention currently in trade between Ukraine and the State of Israel and other states diagonal 
cumulation are not applied.  WT/REG444/1  
 
- 15 - 
 
  rolled (7213 91 , up to 150 thousand tons ); other bars and rods of iron or non -alloy steel (7214 20 , 
up to 12 thousand tons ); and flat rolled products of iron or non -alloy steel (7208 , up to 125 thousand 
tons). According to the Parties, Israel does not apply export taxes.  
3.33.  In Article 2.6.1 the Parties have agreed to not adopt or maintain any prohibition or restriction 
on the exportation or sale for export of any good destined for the territory of the other Party, except 
as permitted under Article XI of the GATT 1994 and its Interpretative Notes. To this end, Articl e XI 
of the GATT 1994 and its Interpretative Notes are incorporated into and made part of the Agreement, 
mutatis mutandis.  
3.34.  Article 2.6.2 provides that measures of a Party listed set out in Annex 2 -A are exempted from 
the requirements of Article 2.6.1 (Art icle 2.6.2). Annex 2 -A sets out exceptions for Israeli measures, 
concerning (a) (i) controls and charges maintained by Israel on the export of metal waste and scrap, 
or (ii) imports of non -kosher meat; and any action authorised by the WTO Dispute Settlemen t Body 
in a dispute between the Parties under the WTO Agreement.  
3.35.  In Article 2 .6.3 the Parties have agreed that Article XI of the GATT 1994 and its Interpretative 
Notes prohibit, in any circumstances in which any other form of restriction is prohibited, a Party from 
adopting or maintaining  export price requirements, except as permitted in enforcement of 
countervailing duty. In Article 2.6.4 performance requirements are defined as volume or value of 
exports or to the amount of foreign exchange inflows; but d oes not include requirements that an 
imported good be subsequently exported or used as a material in the production of another good 
that is subsequently exported; substituted by an identical or similar good used as a material in the 
production of another g ood that is subsequently exported; or is substituted by an identical or similar 
good that is subsequently exported.  
3.36.  Article 2.6.5 provides that in the event a Party introduces a measure that imposes a 
prohibition or restriction otherwise justified under t he relevant provisions of the WTO Agreement 
with respect to the exportation of goods to the other Party, the Party imposing the measure, shall 
notify the other Party, in advance of its intention to apply that measure. Upon the request of the 
other Party, t he first Party shall enter into consultations with the aim of resolving any problem that 
may arise due to that measure.  
3.4  Regulatory provisions of the agreement  
3.4.1   Customs -related procedures  and trade facilitation  
3.37.  Each Party shall make available and maintain, updated information regarding all fees and 
charges imposed in connection with importation or exportation of goods  preferably through the 
internet.  
3.38.  On Customs Cooperation, in Article 3.1 the Parties agreed to cooperate  on a number of 
customs matters  includi ng to ensure the correct implementation and operation of the provisions of 
the Agreement ; preferential treatment , claims and verification procedures; customs valuation and 
tariff classification of goods; and restrictions or prohibitions on imports and/or e xports of goods. In 
Article 3.1(b) the Parties have agreed to designate official contact points and exchange details  with 
the other Party, with a view to facilitating the effective implementation of this Chapter and 
Article  2.13 (Rules of Origin). Accordin g to the Parties, some contact points have been established13. 
If a matter cannot be resolved through the contact points, it shall be referred to the Subcommittee 
on Customs, Trade Facilitation and Rules of Origin as set out in Chapter  2 of the Agreement .  
3.39.  On trade facilitation the y agreed to apply their respective customs laws and procedures in a 
transparent, consistent, fair and predictable manner in order to facilitate the free flow of trade in 
accordance with the Agreement  (Article 3.2). In addition, the y agreed to simplify customs 
procedures to the greatest extent possible, to make use of information and communications 
technology in their customs procedures, and to the extent possible, provide for advance electronic 
submission and p rocessing of information before the physical arrival of goods to enable the ir quick 
 
13 According to the Part ies, the contact points are (a)  for Ukraine, Department on Market Access and 
Cooperation with the WTO, Ministry of Economic Development and Trade, or its successor; and  
(b) for Israel, Bilateral Agreements Department, Foreign Trade Administration, Ministry  of Economy 
and Industry, or its successor.  WT/REG444/1  
 
- 16 - 
 
  release from customs. The y have also agreed to use their best endeavours to improve trade 
facilitation by mutual consultations and to exchange information between their res pective customs 
authorities.  
3.40.  They endeavour to adopt or maintain procedures to ensure  the release of goods within a 
period no greater than that required to ensure compliance with their customs law s (Article 3.3);  to 
provide for advance electronic submissi on and processing of information before the physical arrival 
of goods to enable their release upon arrival14; and to allow goods to be directly released at the 
point of arrival, without temporary transfer to warehouses or other facilities.  
3.41.  Under Article 3 .4, the Parties have agreed to exchange information on their respective risk 
management techniques and to endeavour to improve them through cooperation between their 
respective customs authorities.  In administering customs procedures , to the extent possibl e, each 
customs authority will focus resources on high -risk shipments of goods and facilitate the clearance, 
including release, of low -risk goods.  
3.42.  In Article 2.9 the Parties have agreed to permit the temporary admission of certain goods on 
a duty -free basis, regardless of origin . Each Party may extend the time limit for temporary admission  
upon request of the person concerned and for reasons conside red valid by its Customs Authority.15  
3.43.  In Article 2.11 concerning fees and other charges, each Party shall  ensure that its obligations 
under Article VIII of the GATT 1994 and the Interpretative Notes, that all fees and charges of any 
character (other than customs duties and other duties and charges that are excluded from the 
definition of a customs duty) impos ed on, or in connection with, importation or exportation of goods, 
are limited to the approximate cost of services rendered and do not represent an indirect protection 
of domestic goods or taxation of imports or exports for fiscal purposes. To the extent p ossible, each 
Party shall make available and maintain, updated information regarding all fees and charges imposed 
in connection with importation or exportation of goods, preferably through the internet.  
3.44.  On paperless customs procedures, the Parties have ag reed to cooperate with a view to 
implementing and promoting paperless customs procedures  (Article 3.6) .  
3.45.  Concerning classification and valuation of imported goods, in Article 2.5 the Parties have 
agreed that the classification of goods in trade between the  Parties shall be as set out in the 
respective tariff nomenclature of each Party in conformity with the Harmonized System (HS). The 
Parties may introduce new tariff splits, provided that the preferential conditions applied in any new 
tariff splits are not less preferential than those applied originally.  According to the Parties no new 
tariff splits have been introduced since the Agreement entered into force. For the purpose of 
determining the customs value of goods traded between the Parties, the provision s of Article VII of 
the GATT 1994, its Interpretative Notes, and the Agreement on Implementation of Article VII 
(Customs Valuation Agreement) of the GATT 1994 are incorporated into the Agreement, mutatis 
mutandis.  
3.46.  Advance rulings by customs authorities  are permitted by  Article 3.7  in accordance with 
domestic law . An advance ruling shall include a determination under Article 2.13 (on rules of origin), 
as well as the eligibility of the goods for preferential treatment in accordance with the Agreement . 
Each Pa rty is required to adopt or maintain procedures for the issuance of such advance rulings, 
including the details of the information required for processing an application for a ruling. A Party 
may decline to issue an advance ruling if the facts and circumst ances forming the basis of the 
advance ruling are the subject of  an investigation or an administrative or judicial review. The Party 
that declines to issu e an advance ruling shall promptly notify the requester in writing, setting forth 
the relevant facts a nd the basis for its decision to decline to issue the advance ruling. Each Party 
shall provide that advance rulings shall be in force from their date of issuance, or another date 
specified in the ruling. Subject to the provisions of this Article, an advanc e ruling shall remain in 
force provided that the facts or circumstances on which the ruling is based remain unchanged, or 
for the period specified in the laws, regulations or in the administrative ruling.  
 
14 On advance rulings, see Article 3.7 of the Agreement (below).  
15 If the temporarily imported goods are not dealt with according to the conditions of temporary 
importation set out in Article 2.9, the Party may a pply the applicable customs duty and any other charge that 
would normally be owed on the good plus any other charges or penalties provided for under its law.  WT/REG444/1  
 
- 17 - 
 
  3.47.  In Article 3.8 the Parties have agreed to establish any uniform procedures needed for the 
administration, application and interpretation of the Agreement  in customs matters and related 
topics. According to the Parties, the uniform procedures have not yet b een established.  
3.48.  In Article 3.9 the Parties have agreed to promote the implementation of the Authorized 
Economic Operator ("AEO") concept according to the World Customs Organization SAFE Framework 
of Standards. The Parties agreed to also pursue a mutual re cognition agreement for AEOs.  According 
to the Parties the mutual recognition agreements have not been reached yet.   
3.49.  Under Article  3.10 the Parties agreed to ensure traders have access to at least one level of 
administrative review, within the same instit ution, independent of the official or authority responsible 
for the determination under review; and judicial review of determination s or decision s taken at the 
final level of administrative review.  
3.50.  Article 3.11 sets out obligations of confidentiality conc erning information provided by the other 
Party pursuant to Chapter 3 of the Agreement and Article 2.13 (Rules of Origin).  
3.4.2   Standards  
3.4.2.1   Sanitary and phytosanitary measures  
3.51.  Chapter 5 Articles 5.1 -5.9 concern Sanitary and Phytosanitary Measures (SPS). The objec tives 
of the Chapter are set out in Article 5.1, to protect human, animal and plant life or health in the 
territory of each Party while facilitating trade and ensuring that the Parties' SPS measures do not 
create unjustified barriers to trade. The Chapter applies to all SPS measures, and the Parties 
reaffirmed their rights and obligations under the SPS Agreement and have incorporated it into the 
Agreement (Article 5.3).  
3.52.  The Parties have specified their contact points on SPS in Article 5.4.1. Cooperation on  SPS 
issues is regulated by Article 5.5. The exchange of information on SPS issues under Article 5.6 
requires the Parties to provide information to the other Party on proposed or actual SPS measures 
that may affect trade between the Parties relating to eac h others SPS regime. Under Article 5.6.2 
the Parties shall exchange information on the results of import checks on rejected consignments. 
Oversight of issues arising from Chapter 5 of the Agreement is administered by the Sub -Committee 
on trade in goods. In  Annex 5 -A the Parties have listed the competent authorities for each Party.  
3.53.  Additional transparency requirements are set out in Articles 6.10 and Article 6.11. If a Party 
requires additional information on an SPS matter, the other Party shall endeavour t o respond to 
such a request within 60 days from the nominated contact point.   
3.4.2.2   Technical barriers to trade  
3.54.  Chapter 6 concerns technical barriers to trade (TBT). The objectives of the Chapter are set 
out in Article 6.1: to increase and facilitate trade betwe en the Parties; to ensure that standards, 
technical regulations, and conformity assessment procedures and their application do not create 
unnecessary obstacles to trade; and to enhance joint bilateral cooperation, between the Parties. The 
Parties reaffirme d their existing rights and obligations with respect to each other under the TBT 
Agreement and to this end the TBT Agreement is incorporated into and made part of the Agreement , 
mutatis mutandis (Article 6.2), including definitions used in the Chapter (Article 6.3) .  
3.55.  Chapter 6 applies to the preparation, adoption and application of technical regulations, 
standards and conformity assessment procedures  that may affect trade in goods between the Parties  
(Article 6.4) . Chapter 6 expressly does not apply to purchasing specifications prepared by a 
governmental body for production or consumption requirements of a governmental body or to SPS 
measures defined in Annex A of the SPS Agreement . 
3.56.  A Sub -Committee  on TBT is established in Article 6.5. The functi ons of the Subcommittee 
include monitoring the implementation and administration of Chapter 6 , and enhancing cooperation 
in the development and improvement of standards, technical regulations, and conformity 
assessment procedures . The Sub -Committee is a fo rum for addressing issues raised by a Party 
relating to development or application of technical regulations or conformity assessment procedures; WT/REG444/1  
 
- 18 - 
 
  considering sector -specific proposals by a Party on further cooperation between bodies located in 
each Party's territory dealing with TBT issues; and the consideration of requests for recognition of 
conformity assessment procedures conducted by bodies in the other Party 's territory, including 
requests for the negotiation of a recognition agreement in a sector propo sed by a Party.  
3.57.  The Parties have agreed to use the Sub -Committee for the exchange of information on 
developments in activities related to standards, technical regulations, and conformity assessment 
procedures. On the request of a Party, the Sub -Committee will facilitate technical discussions on any 
matter arising under this Chapter, without prejudice to the rights and obligations of the Parties under 
Chapter 10 (Dispute Settlement). The Sub -Committee is also empowered to take any other steps 
the Parties co nsider necessary to establishing working groups to undertake specific tasks under th e 
Chapter.  
3.58.  In addition to cooperation in the Sub -Committee the Parties have agreed to strengthen 
cooperation in the fields of standardization, technical regulations, conformity assessment and 
metrology with a view to increasing mutual understanding and facilitating access to their respective 
markets. The y have agreed to seek to identify, develop and promote bilateral initiatives on 
cooperation and trade fa cilitation regarding standards, technical regulations, conformity assessment 
procedures and metrology taking into consideration, inter alia, their experience in regional bilateral 
and multilateral arrangements or agreements.  
3.59.  On international standards,  the Parties agree  to use international standards as the basis for 
preparing technical regulations,  unless such international standards are ineffective or inappropriate 
for achieving the legitimate objective pursued  (Article 6.8) and to provide reasons for no t using 
them. in Article 6.7 the Parties have agreed to apply the Decision of the Committee on Principles for 
the Development of International Standards, Guides and Recommendations with Relation to 
Articles  2, 5 and Annex 3 of the Agreement adopted by the WTO Committee on T BT when 
determining whether an international standard , guide or recommendation exists within the meaning 
of Articles 2 and 5 and the scope of Annex 3 of the TBT Agreement adopted by the WTO Committee 
on TBT. The y also agreed in Article 6. 7 to use relevant international standards, guidelines and 
recommendations as a basis for their technical regulations and conformity assessment procedures ; 
and to encourage their respective national standardization bodies to cooperate  in international 
standardization activities  and to exchange information on standardization processes as well as use 
of international, regional or sub -regional standards as the basis for national standards development . 
The Parties will also exchange general in formation on cooperation agreements concluded on 
standardization matters with non -Parties.  
3.60.  If a Party is interested in developing a technical regulation similar to that in use in the other 
Party, the other  Party shall, to the extent practicable, provide t he requesting Party with any 
information, technical study, risk assessment or other available relevant document, on which that 
Party has relied for the development of such technical regulation, excluding confidential information 
in order to reduce unnecess ary costs.  
3.61.  On conformity assessment and accreditation, in Article 6.9 the Parties agreed to recognise 
the possibility of applying a broad range of mechanisms to facilitate acceptance of the results of 
conformity assessment procedures of the other Party. A greement is expressly permitted on the 
acceptance of a suppliers' declaration of conformity, on conformity assessment procedures of the 
other Party, including specific technical regulations of the other Party. The Parties may also agree 
that a conformity a ssessment body located in a Party 's territory can enter into voluntary recognition 
agreements with a conformity assessment body located in the other Party 's territory. The recognition 
of designation of conformity assessment bodies located in the other Part y's territory, whose results 
of conformity assessment are accepted by the Party may also be recognised under Article 6.9. To 
that end, the Parties have agreed to exchange information on the range of conformity mechanisms 
for used by them for assessment rec ognition. The Parties have reserved the right to initiate 
negotiations to facilitate the acceptance of the results of conformity assessment procedures 
conducted by bodies located in the territory of the other Party, when in the interest of the Parties 
and economically justified to encourage their conformity assessment bodies to take part in 
agreements with the conformity assessment bodies of the other Party for the recognition of 
conformity assessment results. A Party  will also give positive consideration t o a request by the other 
Party to negotiate agreements for the mutual recognition of respective conformity assessment 
procedures, when appropriate. If a Party declines a request to enter into such negotiations with the 
other Party it shall upon request of the other Party provide a written explanation for its decision.  WT/REG444/1  
 
- 19 - 
 
  3.4.3   Safeguard mechanisms   
3.62.  Chapter 4 concerns trade remedies. It is composed of 4 Sections. Section A concerns bilateral 
safeguard measures. Section B concerns global safeguard measures. Section C  concerns 
anti-dumping and countervailing measures. Section D concerns a minimal economic injury obligation 
if the Parties apply measures under the Chapter.  
3.4.3.1   Global Safeguard  Measures  
3.63.  In section B of Chapter 4, Article 4.7.1 each Party retains its rights under Article XIX of the 
GATT 1994 and the Safeguards Agreement. A Party may not apply with respect to the same good at 
the same time measures under the Agreement and under Article XIX of the GATT 1994 and the 
Safeguards Agreement.  
3.64.  Safeguard measures shall not be applied to imports of goods originating from the territory of 
the other Party if they are not a substantial cause of serious injury or threat thereof to the domestic 
industry p roducing like or directly competing goods in the importing Party. Factors such as the 
change in the import share of the other Party and the level and change in the global level of imports 
of the other Party shall be taken into account before imposing measu res on the importing Party.  
3.65.  Notification requirements are set out in Article 4.7.5. In addition, if as a result of a global 
safeguard measure, a safeguard duty is imposed, the margin of preference under the Agreement 
shall be maintained.  
3.4.3.2   Bilateral safegua rd measures  
3.66.  Under Article 4.2, a Party may adopt a bilateral safeguard measure during the transition 
period16, if as a result of the reduction or elimination of a duty pursuant to the Agreement, an 
originating good is being imported into the Party's territ ory in such increased quantities, in absolute 
terms or relative to domestic production, and under such conditions that the imports of the 
originating good from that Party alone constitute a substantial cause of serious injury, or threat 
thereof, to a domes tic industry. Bilateral safeguards may not be applied or maintained after the 
transition period. Following the conclusion of the transition period upon request of one of the Parties 
the Joint Committee shall evaluate whether to continue the bilateral safeg uard measures mechanism 
included in this Chapter.  
3.67.  A bilateral safeguard may be taken by a Party, to the minimum extent necessary to prevent 
or remedy serious injury, or threat thereof. The safeguard measure of a Party may (a) suspend the 
further reduction  of any rate of a customs duty provided for under the Agreement  on the goods; or 
(b) increase the rate of duty on the good to a level that does not exceed the lesser of (i) the MFN 
applied rate of duty in effect at the time the measure is applied; or (ii) the base rate specified in the 
Party's tariff Schedule in Annex 2 - C to the Agreement. In addition , a Party may apply a safeguard 
measure in the form of an import tariff quota for the product.  
3.68.  Article 4.3.1 provides that a bilateral safeguard may not be a pplied in the first year after entry 
into force of the Agreement and shall not be applied except to the extent and for the time as may 
be necessary to prevent or remedy serious injury and to facilitate adjustment and, it shall not be 
applied for a period e xceeding two years. This period may be extended to up to two additional years 
if the authorities of the importing Party determine that the measure continues to be necessary to 
prevent or remedy serious injury and to facilitate adjustment. The total period of application of a 
safeguard measure, including the period of initial application and any extension thereof, shall not 
exceed four years. The Party maintaining the measure beyond a two -year period must progressively 
liberalize it at annual intervals durin g its application.  According to the Parties, no bilateral safeguards 
are currently in place.  
3.69.  Per Article 4.3.4, seasonal goods shall not be subject to a measure more than four times 
during the initial two years or for a total cumulative period exceeding fo ur years. When the bilateral 
 
16 Defined in Article 4.1(e) as the two -year period following the entry into force of the Agreement , or the 
period permitted for tariff elimination for the good if that occurs over a longer period of time.  WT/REG444/1  
 
- 20 - 
 
  safeguard measure is terminated, the applicable rate of duty  or quota shall be at the level which 
would have been in effect had the measure not been imposed.  
3.70.  Article 4.4 sets out th e procedure s for conduct of bilateral safegua rd measure investigations. 
Provisional measures are permitted pursuant to Article 4.5. The Parties are required to notify  the 
other Party upon the initiation of a bilateral safeguard investigation and findings in the course of the 
investigation in Article 4.6.  
3.4.3.3   Balance of payments safeguards  
3.71.  In Article 11.3 the Parties will endeavour to avoid the imposition of restrictive measures for 
balance of payments purposes. However if a Party encounters serious balance of payments 
difficulties, or under finds itself under imminent threat thereof, it may (in accordance with the 
conditions established under the GATT 1994 and the WTO Understanding on the Balance of Payments 
Provisions of the GATT 1994) adopt trade restrictive measures, of limited duration and on a non -
discriminatory basis which does not go beyond what is necessary to remedy the balance of payments 
situation. If any such measures are taken the Party introducing the measure must promptly notify 
the other Party.  
3.4.4   Antidumping and Countervailing Measures  
3.72.  Section C, Article 4.8 concerns the application of anti -dumping and countervailing measures . 
The Parties have agreed that such measures should be used in full compliance with Article VI of 
GATT 1994, the WTO Anti-dumping Agreement and the WTO Subsidies Agreement. The Parties have 
agreed to provide additional fairness and transparency obligations referring also to Article 6.5 of the 
Anti-dumping Agreement or Article 12.4 of the Subsidies Agreement as relevant. Disclosures of the 
basis for decisi ons concerning imposition of measures shall be provided in writing and allow 
interested parties at least 10 days to respond with comments.  
3.73.  A determination of public interest obligation is contained in Article 4.8.4. The public interest 
determination shall  be based on consideration of all the various interests taken as a whole, including 
the interests of the domestic industry, users, consumers and importers, to the extent that they have 
provided relevant information to the competent authorities.  
3.4.5   Subsidies and state -aid 
3.74.  There are no provisions in the Agreement on subsidies.  
3.4.6   Other regulations   
3.4.6.1   State Trading  
3.75.  In Article 2.8 of the Agreement the Parties affirm that the rights and obligations of the Parties 
in respect of state trading enterprises shall be governed by Article XVII of the GATT 1994 and the 
Understanding on the Interpretation of Article XVII of the GATT 1994. Those provisions are 
incorporated into and made part of the Agreement.  
3.5  Sector -Specific Provisions of the Agreement  
3.76.  There are no sector -specific provisions in the Agreement . 
4  GENERAL PROVISIONS OF THE AGREEMENT  
4.1  Transparency  
4.1.  Chapter 8 concerns transparency. In Article 8.1 the Parties have agreed to publish or otherwise 
make publicly available their laws, regulations, judicial decisions, admin istrative rulings of general 
application and their respective international agreements that may affect the operation of the 
Agreement. Additional general notification obligations are listed in Article 8.2. Article 8.3 establishes 
a notification requirement  in the event that administrative proceedings of general application are 
taken that may directly affect a person of the other Party.  WT/REG444/1  
 
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  4.2  Current payments and capital movements  
4.2.  Article 11.53 provides that a Party in serious balance of payments difficulties, or  under 
imminent threat thereof, may, adopt trade restrictive measures, which shall be of limited duration 
and non -discriminatory, and may not go beyond what is necessary to remedy the balance of 
payments situation, in accordance with the conditions establi shed under the GATT 1994 and the 
WTO Understanding on the Balance of Payments Provisions of the GATT 1994,. According to the 
Parties, o ther than measures under Article 11.3, there are no other provisions relating to current 
payments and capital movements.  
4.3  Exceptions  
4.3.  Chapter 11 sets out exceptions under the Agreement. Article 11.1 incorporates Article XX of 
the GATT and its interpretative notes mutatis mutandis and permits security exceptions in 
Article  11.2.  
4.4  Accession and withdrawal  
4.4.  Article 12 provides th at the Agreement may be amended in writing by mutual consent of the 
Parties. The Agreement is valid for an indefinite period, although a Party may withdraw from it by 
submission of a Diplomatic Note provided to the other Party, with withdrawal becoming eff ective 
6 months after the date of receipt of such notification by the other Party. Any amendments to the 
provisions of the WTO Agreement which have been incorporated into the Agreement will be the 
subject of consultations between the Parties to decide whet her it is necessary to amend the 
Agreement in light of the amendment of the WTO Agreement.  
4.5.  The Parties have also agreed in Article 12.6 to comprehensively review the Agreement within 
three years of its entry into force and every five years thereafter with  a view to examining the further 
development and deepening of cooperation under th e Agreement and to extend it to areas not 
covered therein.  
4.5  Institutional framework  
4.5.1   Joint Committee  
4.6.  The Agreement creates several bodies to monitor the implementation and functioning of the 
Agreement as well as providing fora for regular exchanges of information. Chapter 9 concerns 
administration of the Agreement. In Article 9.1 a Joint Committee is esta blished. The functions of 
the Joint Committee include responsibility for the administration of the Agreement, monitoring 
implementation, facilitation and operation of the Agreement and the application of its provisions, 
and consideration of other ways to a ttain its general objectives. The Joint Committee is also 
responsible for supervision of the work of all subcommittees, working groups and other bodies 
established under the Agreement , and recommending any necessary action and any other matters 
of interest  relating to the Agreement  (Article 9.3) . 
4.7.  The Joint Committee may also agree to the initiation of negotiations that have the aim of 
deepening liberalisation under the Agreement, recommend to the Parties they adopt any amendment 
or modification to the provi sions of the Agreement . It may also agree to modify by decision the 
Parties tariff schedules in Annex 2 -C (Tariff Elimination), with the purposes of adding one or more 
goods excluded in the Schedule of a Party; the phase -out periods established in Annex 2 -C and any 
other matter concerning Article 2.13 (Rules of Origin). The Joint Committee may also modify the 
Rules of Procedure for Arbitral Tribunal Proceedings established in Annex 10 -A and the Code of 
Conduct established in Annex 10 -B and adopt interpretat ions of the provisions of the Agreement .  
4.8.  The Joint Committee may establish and delegate responsibilities to other subcommittees, 
working groups, or any other bodies comprised of representatives from both Parties in order to assist 
it in the performance of  its tasks. For that purpose, the Joint Committee shall determine the 
composition, duties and rules of procedure of such subcommittees, working groups or other bodies.  WT/REG444/1  
 
- 22 - 
 
  4.9.  The following  subcommittees  are established : (a) on Trade in Goods; (b) on Customs, Trade 
Facilitation and Rules of Origin; (c) Technical Barriers to Trade; and (d) on Trade and Environment 
(Chapter 7).  
4.10.  In Article 2.15 a Subcommittee on trade in goods is established. The Subcommittee will meet 
following a request of a Party or th e Joint Committee to consider any matter arising under Chapter  2 
(Trade in Goods), Chapter 4 (Trade Remedies) and Chapter 5 (Sanitary and Phytosanitary 
Measures). Its functions also include implementation and administration of Chapter 2; promoting 
trade in  goods between the Parties, including through consultations on accelerating reduction or 
elimination of customs duties in accordance with the Agreement and other issues as appropriate. 
The Subcommittee is also tasked with discussion of barriers to trade in  goods between the Parties, 
especially those related to the application of non -tariff measures, and, if appropriate, referring such 
matters to the Joint Committee for its consideration.  
4.11.  In Article 3.12 a Subcommittee on customs, trade facilitation and rul es of origin is established. 
It is responsible for the uniform interpretation, application and administration of Chapter 3 and 
Article 2.13 (Rules of Origin). In particular it is responsible for addressing issues on tariff 
classification, customs valuation  and determination of the origin of goods for the purposes of the 
Agreement , reviewing rules of origin, regular updates on changes in the Parties respective laws, and 
consideration of any other customs -related issues, referred to it by the customs authorit ies of the 
Parties, by the Parties or by the Joint Committee.  
4.12.  The Subcommittee is required to first meet within one year from the date of entry into force 
of the Agreement and shall meet thereafter as agreed upon by the Parties alternately in Israel or in  
Ukraine.  According to the Parties, the Subcommittee has not yet met.  
4.13.  Article 6.5 establishes a Subcommittee on TBT. The functions of the Subcommittee are set 
out in Article 6.5.2 and include monitoring the implementation of Chapter 6 (TBT) and enhancing 
cooperation, consideration of TBT issues and exchange of technical information on TBT. It is required 
to first meet within one year from the date of entry into force of the Agreement or as agreed by the 
Parties.  According to the Parties, the Subcommittee h as not yet met.   
4.14.  The Subcommittee on trade and environment is established under Article 7.14, to oversee 
and review the implementation of Chapter 7, including any cooperative activity undertaken between 
the Parties, to discuss any matter of common interes t.  
4.6  Dispute settlement  
4.15.  Chapter 10 and Annexes 10 -A (Rules of Procedure of Arbitral Tribunals) and 10 -B (Code of 
Conduct) concern dispute settlement.  The aim of Chapter 10  is to provide an effective and efficient 
dispute settlement process between the Parti es regarding their rights and obligations under the 
Agreement  (Article 10.1) . The Parties will endeavour to agree on the interpretation and application 
of the Agreement  and shall make efforts through cooperation, consultation, or other means, to reach 
a mutually agreed solution.  
4.16.  Article 10.2.1 and the provisions of th e Chapter apply to any dispute arising from the 
interpretation, application, fulfilment or non -fulfilment of the provisions contained in the Agreement , 
except for matters arising under Chapter 7 (Trade and Environment) . Article 10.2.2 also permits 
actions concerning nullification and impairment.  
4.17.  Chapter 10.3 contains a choice of forum provision. A ny matter in dispute covered both by th e 
Agreement and the WTO Agreement or any other free trade agreement to which both Parties are 
party may be settled in either forum selected by the complaining Party. Once dispute settlement 
procedures are initiated under Article 10.10 or under Article 6 (Establishment of Panels) of the 
Understanding on Rule s and Procedures Governing the Settlement of Disputes contained in Annex 2 
to the WTO Agreement or any other free trade agreement to which both Parties are party, the forum 
selected shall be used to the exclusion of the other.  
4.18.  The Chapter sets out a serie s of steps leading to the establishment of an adjudicatory panel, 
although Article 10.4 permits the Parties to, at any stage, reach a mutually agreed solution to a 
dispute under the Chapter with the consequence that any dispute settlement procedure under t he WT/REG444/1  
 
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  Chapter will be terminated. The Parties may also at any stage resolve a dispute through consultations 
(Article 10.5) , conciliation and good offices (Article 10.6) or mediation (Article 10.7) . 
4.19.  Article 10.8 describes the establishment of rosters of arbitr ators from which members of an 
arbitral tribunal may be selected or appointed and non -resident non -nationals who may serve as 
chairs of an Arbitral Tribunal. In Article 10.8.1 the Parties have agreed to each establish an indicative 
roster of arbitrators , according to the Parties the rosters have not yet been established .  
4.20.  In Article 10.10 the Parties have settled the procedure for request for the establishment of an 
arbitral tribunal, provided consultations have not taken place of have failed to settle the dispute 
through consultations within 60 days after the date of receipt of the request for consultations; or 
the Parties have had recourse to mediation and no mutually acceptable solution has been reached 
within 15 days after the issuance of the mediator's opinion. A request for the establishment of an 
Arbitral Tribunal shall be made in writing to the Party complained against and to the Joint Committee. 
The complaining Party shall identify in its request the specific measure at issue, and shall explain 
how t hat measure constitutes a violation of the provisions of the Agreement  in a manner that clearly 
presents the legal basis for the complaint, including indicating the relevant provisions of th e 
Agreement . 
4.21.  Once appointed under Article 10.11 an Arbitral Tribun al is required adopt its decisions by 
consensus , or if not possible by confidential majority vote  (Article 10.13) . It shall present to the 
Parties an initial report on the dispute referred to it within 90 days after its establishment , and in no 
case more t han 120 days from establishment  (or within 45 and 75 days respectively in urgent cases, 
including those involving perishable or seasonal goods) .  
4.22.  A Party may submit written comments to the Arbitral Tribunal on its initial report within 30 
days of presentat ion of the report . The Tribunal's final report, including any separate opinions on 
matters not unanimously agreed, shall be presented to the Parties within 45 days of presentation of 
the initial report. Unless the Parties decide otherwise, the final report of the Arbitral Tribunal shall 
be made publicly available within 10 days after it is presented to the Parties, subject to the protection 
of confiden tial information.  
4.23.  If the Party complained against is not able to promptly comply with the determination or 
recommendation contained in the final report of the Arbitral Tribunal , the Parties shall endeavor to 
agree on a reasonable period of time to comply.  If requested to determine a reasonable period of 
time for implementation of the report, in general a reasonable time to comply with the determination 
or recommendation should not exceed 15 months from the date the final report was issued  
(Article  10.16) .  
4.24.  If there is d isagreement as to the existence of a measure complying with the determination 
or recommendation in the final report or to the consistency of that measure with the determination 
or recommendation of the Arbitral Tribunal, such dispute can be r emitted to the same Arbitral 
Tribunal before the complaining Party may obtain compensation or suspension of benefits in 
accordance with Article 10.17.  
4.25.  Annex 10 -A sets out the Rules of Procedure for Arbitral Tribunals. Annex 10 -B contains a Code 
of Conduct  for Arbitrators and persons working for the Tribunal.  
4.7  Relationship with other agreements concluded by the parties  
4.26.  In Article 1.3 the Parties note that nothing in the Agreement preclude s the maintenance or 
establishment of customs unions, free trade areas , arrangements for frontier trade insofar as they 
are in accordance with the provisions of Article XXIV of the GATT 1994 and with the Understanding 
on the Interpretation of Article XXIV of the GATT 1994. At the request of either Party, consultations 
can take place in the Joint Committee to discuss agreements establishing customs unions or free 
trade areas. The Parties' other RTAs, notified and non -notified are in Table 4.1.  WT/REG444/1  
 
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  Table 4.1 Ukraine and Israel: Participation in other RTAs (notified and non -notified in 
force), as of 2 September  2021  
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provisions  
UKRAINE  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Canada - Ukraine  01-Aug-17 Goods  2017 GATT Art. XXIV  
EU - Ukraine  23-Apr-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Ukraine - Montenegro  01-Jan-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Treaty on a Free Trade Area 
between members of the 
Commonwealth of 
Independent States (CIS)  20-Sep-12 Goods  2013 GATT Art. XXIV  
EFTA - Ukraine  01-Jun-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Ukraine - Belarus  11-Nov-06 Goods  2008 GATT Art. XXIV  
Ukraine - Moldova, 
Republic of  19-May-05 Goods  2008 GATT Art. XXIV  
Common Economic Zone 
(CEZ)  20-May-04 Goods  2008 GATT Art. XXIV  
GUAM  10-Dec-03 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Ukraine - Tajikistan  11-Jul-02 Goods  2008 GATT Art. XXIV  
Ukraine - North Macedonia  05-Jul-01 Goods  2008 GATT Art. XXIV  
Ukraine - Kazakhstan  19-Oct-98 Goods  2008 GATT Art. XXIV  
Kyrgyz Republic - Ukraine  19-Jan-98 Goods  1999 GATT Art. XXIV  
Armenia - Ukraine  18-Dec-96 Goods  2004 GATT Art. XXIV 
Ukraine - Azerbaijan  02-Sep-96 Goods  2008 GATT Art. XXIV  
Georgia - Ukraine  04-Jun-96 Goods  2001 GATT Art. XXIV  
Ukraine - Uzbekistan  01-Jan-96 Goods  2008 GATT Art. XXIV  
Ukraine - Turkmenistan  04-Nov-95 Goods  2008 GATT Art. XXIV  
ISRAEL  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
Southern Common Market 
(MERCOSUR) - Israel  23-Dec-09 Goods  2019 GATT Art. XXIV  
Israel - Mexico  01-Jul-00 Goods  2001 GATT Art. XXIV  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
Turkey - Israel  01-May-97 Goods  1998 GATT Art. XXIV  
Canada - Israel  01-Jan-97 Goods  1997 GATT Art. XXIV  
EFTA - Israel  01-Jan-93 Goods  1992 GATT Art. XXIV  
United States - Israel  19-Aug-85 Goods  1985 GATT Art. XXIV  
Protocol on Trade 
Negotiations (PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Israel - Colombia  11-Aug-20 Goods & 
Services  Not notified  
Panama - Israel  01-Jan-20 Goods & 
Services  Not notified  
Jordan - Israel  19-Apr-96 Goods  Not notified  
a  Dates of the first entry into force for at least one of the Parties.  
Source:  WTO Secretariat  and the Parties . Further information on these Agreements and on specific dates of 
entry into force/provisional applications may be found in the WTO Database on R TAs: 
http://rtais.wto.org .  
 
4.8  Government procurement  
4.27.  The Agreement contains no provision s on government procurement .  WT/REG444/1  
 
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  4.9  Intellectual property rights  
4.28.  The Agreement contains no provision s on intellectual property rights.  
4.10  Competition  
4.29.  The Agreement contains no provision s on competition .  
4.11  Environment  
4.30.  Chapter 7 concerns trade and environment. Article 7.1 recognise s that each Party has 
sovereign rights to conserve and protect its environment, and affirm s their environmental obligations 
under their own law, as well as international obligations under multilateral environmental 
agreements to which they are party. The Parties have also recognised that it is inappropriate to 
establish or use environ mental laws or other measures in a manner that would constitute a disguised 
restriction on trade between the Parties.  
4.31.  In Article 7.3, whilst recognising the right of each Party to set its own environmental priorities, 
levels of environmental protection, an d set its environmental laws and policies accordingly, the 
Parties have agreed to strive to ensure that those laws and policies provide for and encourage high 
levels of environmental protection and shall strive to continue to improve them and their underly ing 
levels of protection.  
4.32.  Article 7.4 requires that each Party effectively enforce its environmental laws, through a 
sustained or recurring course of action or inaction, in a manner that affects trade or investment 
between the Parties and to not encourage trade or investment by weakening or reducing the level 
of protection afforded in its environmental laws. The Parties agree to not waive (or offer to waive) 
or otherwise derogate from, from its environmental laws in a manner that weakens or reduces the 
protections afforded in those laws, as an encouragement for trade or investment. To this end each 
Party is required to ensure that violations of its environmental laws can be remedied or sanctioned 
under its law through judicial, quasi -judicial or administrati ve proceedings. Article 7.5.2 further 
requires that private access to remedies is made available so that an interested person may request 
the Party 's competent authorities to investigate an alleged violation of its environmental laws and 
shall give such a request due consideration, in accordance with its law. Article 7.6 lays out minimum 
procedural guarantees for ensuring that the obligation in Article 7.5.2 to provide access to remedies 
is available.  
4.33.  In Article 7.7 the Parties have agreed to promote public awareness of their environmental 
laws by ensuring that relevant information is made available to the public regarding its 
environmental laws, and procedures regarding environmental law enforcement and compliance. 
Article 7.8 exhorts the Part ies to encourage voluntary best practices with respect to corporate social 
responsibility by enterprises operating within its territory or subject to its jurisdiction to strengthen 
coherence between economic and environmental objectives.  
4.34.  National contact p oints on environment  are established , for Ukraine, the Ministry of Ecology 
and Natural Resources or its successor; and for Israel, the Ministry of Environmental Protection or 
its successor.  
4.35.  Additional commitments on public information and party to party in formation exchange on 
environment are set out in Article 7.11 and 7.12. The Parties have agreed to continue cooperation 
on environmental issues bilaterally, regionally and multilaterally in Article 7.13.  
4.36.  The Environment Subcommittee shall consider a revie w of the implementation of Chapter 7, 
with a view to improving its operation and effectiveness, within five years of the date of the entry 
into force of the Agreement , and periodically thereafter as mutually decided.  
4.37.  Article 7.19 sets out a dispute resolut ion procedure for any matter arising under Chapter 7. 
A Review Panel shall be established upon receipt of a request by a National Contact Point. The work 
of the Review Panel shall be subject to Annex 10 -A (Rules of Procedure) and Annex 10 -B (Code of 
Conduc t), unless the Parties decide otherwise. Chapter 7 is not subject to the dispute settlement 
mechanism under Chapter 10.  WT/REG444/1  
 
- 26 - 
 
  4.12  Labour  
4.38.  The Agreement contains no provision s on labour .  
4.13  Electronic commerce  
4.39.  The Agreement contains no provision s on electronic commerce .  
4.14  Small and medium -sized enterprises  
4.40.  The Agreement contains no provision on  small and medium -sized enterprises .  WT/REG444/1  
 
- 27 - 
 
  ANNEX 1  
Ukraine  
1. Table A1.1 below sets out the preferential rates available for exports from Israel to Ukraine, 
(by total, agricultural and industrial  products). Prior to entry into force of the Agreement,  Ukraine's 
averaged applied MFN tariff was 4.7% overall (8.2% for HS Chapters 1 -24 and 3.6% fo r 
HS Chapters  25-97). This represented 38.1% of tariff lines. With the entry into force of the 
Agreement, 68.2% of tariff lines became duty free, representing 28.9% of agricultural products and 
81.3% of industrial  products respectively. By the end of implementation in 2027, 83.5% of tariff 
lines will be duty free for Israel's exports to Ukraine  (34.7% for agricultural products and 99.8 of 
industrial products) .  
2. From the entry into force of the Agreement Israel will  enjoy a relative margin of preference 
overall of 38%, 6% for agricultural products and 61% for industrial  products.  
Table A1. 1 Ukraine: Indicators of MFN tariff rates and preferential rates for imports from 
Israel  
Origin of 
goods Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 4.7 7.7 38.1 8.2 10.9 23.5 3.6 6.4 43.0 
Israel  2021 2.9 9.3 68.2 7.7 11.0 28.9 1.4 7.4 81.3 
2022 2.5 7.9 68.2 7.5 10.7 28.9 0.9 4.6 81.3 
2023 2.0 9.2 77.2 7.3 11.0 32.1 0.4 4.5 92.2 
2024 1.9 8.6 77.2 7.2 10.9 32.1 0.2 2.4 92.2 
2025 1.7 11.1 83.5 7.1 11.2 34.7 0.0 8.4 99.8 
2026 1.7 11.1 83.5 7.1 11.2 34.7 0.0 8.4 99.8 
2027 1.7 11.1 83.5 7.1 11.2 34.7 0.0 8.4 99.8 
Note:  For the calculation of averages, specific rates are excluded .  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by Ukraine and from WTO -IDB. 
 
3. Table A1.2 gives an indication of additional market access in Israel resulting from the entry 
into force of the Agreement for Israel's top 25 global exports, which accounted for 5 1.3% of its 
global exports in 201 8-2020 and were covered by 135 tariff lines at the HS s ix digit level . Prior to 
the entry into force of the Agreement, 105 of these tariff lines already had (MFN) duty free access 
to Ukraine's market. With the entry into force of the Agreement, in 20 21, 24 additional tariff lines, 
which were dutiable, became d uty free for exports from  Israel . At the end of the implementation 
period, none of the lines covering Israel's top 25 global exports will be dutiable.  
Table A1. 2 Ukraine: Market access opportunities under the agreement for Isra el's top 25 
exports to the world  
Israel's top export products  
in 2018 -20 Access Conditions to Ukraine's markets  
HS number and description of  
the product  Share 
in 
global 
exports 
(%) MFN 2021  Number  of  
duty-free 
lines  
under the 
agreement  
Remain 
Dutiable  
Average 
Tariff 
(%) Number  
of duty -
free 
lines  Number  
of 
dutiable 
lines  
2021  
2023  
2025  
710239  Diamonds, worked, but not 
mounted or set  15.4 10.0  2   2  WT/REG444/1  
 
- 28 - 
 
  Israel's top export products  
in 2018 -20 Access Conditions to Ukraine's markets  
HS number and description of  
the product  Share 
in 
global 
exports 
(%) MFN 2021  Number  of  
duty-free 
lines  
under the 
agreement  
Remain 
Dutiable  
Average 
Tariff 
(%) Number  
of duty -
free 
lines  Number  
of 
dutiable 
lines  
2021  
2023  
2025  
300490  Medicaments  4.7 0.0 1      
854231  Electronic integrated 
circuits  3.9 0.0 3      
293359  Heterocyclic compounds  3.8 0.0 3      
880330  Parts of aeroplanes or 
helicopters  3.1 0.0 2      
710231  Non-industrial diamonds  2.9 0.0 1      
851762  Machines for the reception, 
conversion and 
transmission  1.8 0.0 1      
901890  Instruments and 
appliances used in medical, 
surgical or veterinary 
sciences  1.7 0.0 8      
310590  Mineral or chemical 
fertilisers  1.5 5.5  3 3    
820900  Plates, sticks, tips and the 
like for tools  1.3 10.0  2  2   
854370  Electrical machines and 
apparatus  1.3 0.4 13 1 1    
380893  Herbicides, anti -sprouting 
products and plant -growth 
regulators  1.2 2.0 9 4 4    
851770  Parts of telephone sets, 
telephones for cellular 
networks  1.0 2.5 3 1  1   
271020  Petroleum oils and oils 
obtained from bituminous 
minerals  0.9 0.8 7 1 1    
901819  Electro -diagnostic 
apparatus  0.7 0.0 2      
903141  Optical instruments and 
appliances for inspecting 
semiconductor wafers  0.7 0.0 1      
903149  Optical instruments, 
appliances and machines 
for measuring or checking  0.7 0.0 2      
392690  Articles of plastics and 
articles of  0.7 1.4 5 2 2    
300390  Medicaments  0.7 0.0 2      
844319  Printing machinery  0.6 3.7  3 3    
271019  Medium oils and 
preparations  0.6 0.9 32 8 8    
380891  Insecticides  0.6 2.2 4 2 1 1   
842482  Agricultural or horticultural 
mechanical appliances  0.6 0.7 2 1 1    
854239  Electronic integrated 
circuits  0.5 0.0 3      
903082  Instruments and apparatus 
for measuring or checking 
semiconductor wafers or 
devices  0.5 0.0 1      
Total of above  51.3 1.6 105 30 24 4 2  
Note:  For the calculation of averages, specific rates are excluded .  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by Ukraine, from WTO-IDB and UNSD Comtrade.  WT/REG444/1  
 
- 29 - 
 
  4. Table A1. 3 below sets out the preferential rates available for exports from Ukraine to Israel, 
(by total, agricultural and industrial  produ cts). Prior to entry into force of the Agreement, Israel's 
average applied MFN tariff was 6.4% overall ( 25.1% for HS Chapters 1 -24 and 2.7% for HS Chapters 
25-97). This represented 67.0% of tariff lines  overall and 47.2% and 71.2% respectively of 
agricultu ral and industrial lines . With the entry into force of the Agreement, 84.6% of tariff lines 
became duty free, representing 47.5% of agricultural products and 92.5% of industrial  products 
respectively. By the end of implementation in 2027,  99.7% of tariff l ines will be duty free for Israel's 
exports to Ukraine  overall, 62.7% of agricultural lines and 99.7% of industrial lines .  
Table A1. 3 Israel: Indicators of MFN tariff rates and preferential rates for imports from 
Ukraine  
Origin  of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 6.4 19.9 67.0 25.1 49.9 47.2 2.7 9.4 71.2 
Ukraine  2021 4.5 31.2 84.6 24.2 48.4 47.5 0.6 7.8 92.5 
2022 4.3 29.3 84.6 23.8 47.4 47.5 0.3 4.6 92.5 
2023 4.0 42.5 89.8 23.3 48.3 49.3 0.1 6.4 98.4 
2024 3.9 41.5 89.8 22.9 47.4 49.3 0.1 4.6 98.4 
2025 3.8 60.9 93.0 22.3 64.4 62.3 0.0 9.2 99.4 
2026 3.8 60.8 93.0 22.3 64.3 62.3 0.0 8.3 99.4 
2027 3.8 63.5 93.2 22.3 65.0 62.7 0.0 16.1 99.7 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates bas ed on data provided by Israel.  
 
5. Table A1.2 gives an indication of additional market access in Ukraine resulting from the entry 
into force of the Agreement for Ukraine's  top 25 global exports, which accounted for 5 9.9% of its 
global exports in 2018 -2020 and were covered by 33 lines at the HS six digit level . Prior to the entry 
into force of the Agreement, 22 of these tariff lines already had (MFN) duty free access to Ukraine's 
market. After entry into force of the Agreement, in 202 3 2 additional tariff lines , will become duty 
free for exports from  Ukraine . The 9 lines remaining dutiable concern maize, sunflower or safflower 
seed oil, wheat and meslin and oilcake and chicken offal; the average applied MFN rate for these 
lines in 2021 ranged from 2.8% to 102%.  
Table A1. 4 Israel: Market access opportunities under the agreement for Ukraine's top 25 
exports to the world  
Ukraine 's top export products  
in 2018 -20 Access Conditions to Israel's  markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2021  Number   
of duty -
free  
lines  
under the 
agreement  
Remain 
Dutiable  
Average 
Tariff  
(%) 
Number  of 
duty-free 
lines  
Number  of 
dutiable 
lines  
2023  
100590  Maize  9.3 57.0 1 1  1 
151211  Crude sunflower -seed or 
safflower oil  8.3 5.0 1 2  2 
100199  Wheat and meslin  7.0 50.0  2  2 
260111  Non-agglomerated iron ores 
and concentrates  3.8 0.0 1    
260112  Agglomerated iron ores and 
concentrates  3.4 0.0 1    WT/REG444/1  
 
- 30 - 
 
  Ukraine 's top export products  
in 2018 -20 Access Conditions to Israel's  markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2021  Number   
of duty -
free  
lines  
under the 
agreement  
Remain 
Dutiable  
Average 
Tariff  
(%) 
Number  of 
duty-free 
lines  
Number  of 
dutiable 
lines  
2023  
854430  Ignition wiring sets and 
other wiring sets for 
vehicles, aircraft or ships  2.7 10.5  2 2  
720712  Semi-finished products of 
iron or non -alloy steel  2.6 0.0 1    
120510  Low erucic acid rape or colza 
seeds  2.2 0.0 1    
720711  Semi-finished products of 
iron or non -alloy steel  2.1 0.0 1    
230630  Oilcake and other solid 
residues  2.0 2.8  1  1 
720110  Non-alloy pig iron in pigs, 
blocks or other primary 
forms  1.9 0.0 1    
120190  Soya beans  1.8 0.0 1    
100390  Barley  1.5 0.0 1    
720851  Flat-rolled products of iron 
or non -alloy steel  1.4 0.0 1    
720720  Semi-finished products of 
iron or non -alloy steel  1.2 0.0 1    
721420  Bars and rods  1.1 0.0 1    
720230  Ferro-silico-manganese  1.1 0.0 1    
720839  Flat-rolled products of iron 
or non -alloy steel  1.1 0.0 1    
281820  Aluminium oxide  1.0 0.0 1    
151219  Sunflower -seed or safflower 
oil and their fractions  1.0 5.0 1 2  2 
721391  Bars and rods  0.7 0.0 3    
271600  Electrical energya 0.7 - - - - - 
240220  Cigarettes  0.7 0.0 1    
720852  Flat-rolled products of iron 
or non -alloy steel  0.6 0.0 1    
020714  Frozen cuts and edible offal 
of fowls of the species gallus 
domesticus  0.5 102.0   1  1 
Total of above  59.9 9.3 22 11 2 9 
a Optional tariff line which does not exist in Israel's tariffs nomenclature.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Israel.   WT/REG444/1  
 
- 31 - 
 
  ANNEX 2  
TRQS OF ISRAEL U NDER THE AGREEMENT  
1. Table A2.1 below summarizes the TRQs for imports into Israel as set out in t he Tariff Schedule 
of Israel under the Agreement.  
Table A2. 1 Aggregate TRQs for imports into Israel  
HS codes  Under the Agreement  
MFN rates (2021)  Out-of-
quota 
rates  Quantity  (Metric 
tonnes unless 
specified)  
0204.10.10, 0204.10.90, 
0204.21.00, 0204.22.00, 
0204.23.00, 0204.30.00, 
0204.41.00, 0204.42.00, 
0204.43.00, 0204.50.00  MFN 100 for HS 0204 7 NIS /kg but no more than 
30% 
0207.11.00  MFN 50 for 02071100 and 
02071300  3.75 NIS /kg but no more 
than 170%  
0207.12.00  2.31 NIS /kg 
but no 
more than 
157.25%  135 + MFN -7.5% for 
02071200 and 
02071400  2.50 NIS /kg but no more 
than 170%  
0207.13.00  MFN 50 for 02071100 and 
02071300  6.75 NIS /kg but no more 
than 111%  
0207.14.00  4.13 NIS /kg 
but no 
more than 
94.35%  135 + MFN -7.5% for 
02071200 and 
02071400  4.50 NIS /kg but no more 
than 102%  
0402.10.20, 0402.10.90  MFN 50 for 04021090 and 
04022190  162.0  
0402.21.20  MFN 500 for 04021020 and 
04022120  212.0  
0402.21.90  MFN 50 for 04021090 and 
04022190  212.0  
0403.10.90, 0403.90.90  MFN 50 for 04031090 and 
04039090  5.50 NIS /kg but no more 
than 60%  
0405.10.39, 0405.10.99, 
0405.20.00, 0405.90.90  MFN TRQ 50 for: 04051039, 
04051099, 04052000, 
04059090  0.0 
0406.10.90, 0406.90.90  8.39 NIS /kg 40 for 04061090 and 
04069090 + Binding of 
8.39 NIS /kg  7.68 NIS /kg 
0407.21.00  MFN 5.5 milion eggs - 3 
million for any purpose 
and 2.5 million only for 
industry  0.30 NIS each but no 
more than 170%  
0408.11.00, 0408.19.00  MFN 10 Ton for: 04081100 
and 04081900 + 14% + 
8 NIS /kg but no more 
than 100%  14% + 3.25 NIS /kg but no 
more than 100%  
0409.00.20  11.71 
NIS/kg but 
no more 
than 255%  25 + binding of 11.71 
NIS/kg but no more 
than 255%  10.70 NIS /kg but no more 
than 255%  
0409.00.30  11.24 
NIS/kg but 
no more 
than 255%  100 + binding of 11.24 
NIS/kg but no more 
than 255%  10.10 NIS /kg but no more 
than 255%  
0409.00.90  17.32 
NIS/kg but 
no more 
than 255%  25 + binding of 17.32 
NIS/kg but no more 
than 255%  15.57 NIS /kg but no more 
than 255%  
0701.90.11, 0701.90.12, 0701.90.19  MFN 500 for 070190  1.73 NIS /kg but no more 
than 230%  
0701.90.21, 0701.90.22, 0701.90.29  MFN 1.50 NIS /kg but no more 
than 234%  WT/REG444/1  
 
- 32 - 
 
  HS codes  Under the Agreement  
MFN rates (2021)  Out-of-
quota 
rates  Quantity  (Metric 
tonnes unless 
specified)  
0702.00.11, 0702.00.19  MFN 300 for 0702  
300 for 0702  0.87 NIS /kg but no more 
than 272%  
0702.00.91, 0702.00.99  MFN 1.18 NIS /kg but no more 
than 272%  
0703.10.11, 0703.10.19  MFN 75 for 070310  
75 for 070310  1.06 NIS /kg but no more 
than 298%  
0703.10.91, 0703.10.99  MFN 0.73 NIS /kg but no more 
than 298%  
0710.10.00  MFN 250 for 0710  12% but no less than  
2.34 NIS /kg 
0710.21.00, 0710.22.00  MFN 12% but no less than  
1.17 NIS /kg 
0710.29.20  MFN 8.0 
0710.29.90, 0710.30.00  MFN 20.0 
0710.40.00  MFN 12% but no less than  
1.57 NIS /kg 
0710.80.13  MFN 0.0 
0710.80.19  MFN 20.0 
0710.80.20  MFN 8.0 
0710.80.40  MFN 12% but no less than  
0.93 NIS /kg 
0710.80.50  MFN 0.0 
0710.80.60  MFN 8.0 
0710.80.90  MFN 30.0 
0710.90.00  MFN 12% but no less than  
1.46 NIS /kg 
0713.20.00  MFN 175 1.03 NIS /kg but no more 
than 140%  
0807.11.00  MFN 300 0.42 NIS /kg but no more 
than 102%  
0808.10.00  MFN 180 1.79 NIS /kg but no more 
than 553%  
0811.20.90  MFN 100 8.0 
0904.21.00, 0904.22.00  MFN 50 12.0 
1001.19.00  MFN 8,000  50.0 
1001.99.10  MFN 200 50.0 
1001.99.90  MFN 450,000 50.0 
1211.20.20, 1211.90.30  MFN 100 for 20089919, 
20089990, 12112020 
and 12119030  8.0 
1512.11.11, 1512.19.22  MFN 2,600 for 15121111, 
15121190, 15121921, 
15121990  7.0 
1512.11.90, 1512.19.90  MFN 8.0 
1601.00.10  MFN 50 12% + 2.90 NIS /kg but no 
more than 22%  
1602.31.90, 1602.32.90, 1602.39.90  MFN 80 for 16023190, 
16023290, 16023990  12% + 2.90 NIS /kg but no 
more than 22%  
1905.40.30, 1905.40.90  MFN 50 for 19054030, 
19054090  0.32 NIS /kg but no more 
than 112%  
1905.90.91, 1905.90.92, 1905.90.99  MFN 100 for 19059091, 
19059092, 19059099  0.32 NIS /kg but no more 
than 112%  
2001.10.00  MFN 50 12% but no less than  
0.59 NIS /kg 
2001.90.90  MFN 200 12.0 
2002.90.13  MFN 120 12% but no less than  
0.97 NIS /kg 
2002.90.20  MFN 275 8.0 WT/REG444/1  
 
- 33 - 
 
  HS codes  Under the Agreement  
MFN rates (2021)  Out-of-
quota 
rates  Quantity  (Metric 
tonnes unless 
specified)  
2004.90.99  MFN 30 12% but no less than  
1.18 NIS /kg 
2005.20.90  MFN 50 12% but no less than  
2.34 NIS /kg 
2005.40.90  12.0 20 + binding of 12% 12.0 
2005.51.00  MFN 50 12.0 
2005.59.90  12.00  10 + binding of 12% 12.0 
2005.60.00  zero (fully 
liberalized 
in 5th year)  50 4.0 
2005.99.40  MFN 75 12% but no less than  
0.97 NIS /kg 
2008.50.90  MFN 50 8.0 
2008.60.00  MFN 50 8.0 
2008.80.40  MFN 50 12% but no less than  
1.46 NIS /kg 
2008.97.10  MFN 50 8.0 
2008.99.19, 2008.99.90  MFN 100 for 20089919, 
20089990, 12112020 
and 12119030  8.0 
2009.61.10, 2009.61.20, 2009.61.90  MFN 50 for 200961  12% but no less than  
1.51 NIS /kg 
2009.69.20, 2009.69.90  30.00  25 for 20096920 and 
20096990 + binding 
30% 30.0 
2009.71.10, 2009.71.90, 
2009.79.39, 2009.79.90  MFN 100 for 20097939 and 
20097990  12.0 
2009.89.19  MFN 50 12.0 
2009.89.30, 2009.89.90  MFN 200 for 20098930 and 
20098990  12.0 
2009.90.30  MFN 100 12.0 
2009.90.90  12.0 30 + binding 12%  12.0 
2105.00.11, 2105.00.12, 2105.00.13  MFN 400 for 21050011, 
21050012 and 
21050013  4.0 
2204.10.00, 2204.21.00, 
2204.22.00, 2204.29.00, 2205.10.00  12% + 1.48 
NIS/litre 45,000 litres for 
22041000, 22042100, 
22042900, 22051000 + 
binding of 12% + 1.48 
NIS/litre 12% but no less than  
3.42 NIS /litre 
2309.10.20  3.0 60 + binding 3%  3.0 
3502.11.00  5 NIS /kg 
but no 
more than 
50% 20 for 35021100 and 
35021900 + Binding 5 
NIS/kg but no more 
than 50%  5 NIS /kg but no more than 
50% 
3502.19.00  10% + 3.25 
NIS/kg but 
no more 
than 50%  20 for 35021100 and 
35021900 + binding 
10% + 3.25 NIS /kg but 
no more than 50%  10% + 3.25 NIS /kg but no 
more than 50%  
 
__________