WORLD TRADE  
ORGANIZATION  WT/REG199/1 
3 May 2005 
 (05-1817) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN ROMANIA AND ISRAEL 
 
  The following communication, dated 6 April 2005, is being circulated at the request of the Delegations of Romania and Israel. 
 
 
_______________ 
 
 
FREE TRADE AGREEMENT BETWEEN THE GOVERNMENT OF ROMANIA AND  
THE GOVERNMENT OF THE STATE OF ISRAEL
* 
 
PREAMBLE  
 
The Government of Romania  and the Government of the State of Israel  (hereinafter "the 
Parties"), 
Reaffirming their firm commitment to the principles of a market economy, which constitutes 
the basis for their relations; 
Considering their common desire to participate ac tively in the process of international 
economic integration; 
Resolved  to this end to eliminate progressively the obstacles to substantially all their mutual 
trade, in accordance with the provisions of the General Agreement on Tariffs and Trade 1994 
(hereinafter - GATT 1994) and the Agreement establi shing the World Trade Organization (hereinafter 
- WTO); 
Convinced  that this Agreement will create a new c limate for their economic relations and, in 
particular, for the development of trade and i nvestments as well as economic and technological co-
operation; 
Considering  the Association Agreements signed by Romania and by the Government of the 
State of Israel with th e European Communities; 
Considering  that no provision of this Agreement ma y be interpreted as exempting Romania 
and the State of Israel from their obligations unde r other international ag reements, especially the 
GATT 1994 and the Agreement establishing the WTO, 
Have decided  as follows: 
                                                      
* The associated Annexes have been submitted to  the Secretariat for consultation by interested 
Members (office 1174). WT/REG199/1 
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Article 1 
Objectives
 
1. The Parties shall gradually establish, during a transitional period ending on 1.1.2004 a free 
trade area in accordance with the provisions of the pr esent Agreement and in conformity with those of 
the GATT 1994, in particular Article XXIV and of the Agreement establishing the WTO, in particular 
the Understanding on the Interpretation of Article XXIV of the GATT 1994. 
2. The objectives of this Agreement are: 
(a) to promote, through the expansion of trad e, the harmonious deve lopment of economic 
relations between Romania and the State of Israel and thus to foster the advance of their economic activity, the improvement of  the living standard, employment 
opportunities and increase of productivity;  
(b) to provide fair conditions of competition in trade between Romania and the State of 
Israel; 
(c) to contribute in this way, by the removal of barriers to trade, to the harmonious 
development and expansion of world trade; 
(d) to promote co-operation in areas which are of mutual interest to the Parties. 
CHAPTER I - INDUSTRIAL PRODUCTS 
Article 2 
Scope
 
The provisions of this chapter shall apply to in dustrial products originating in Romania and in 
the State of Israel.  For the purpose of this Ag reement the term "industrial products" means the 
products falling within Chapters  25 to 97 of the Harmonized Commodity Description and Coding 
System, with the exception of the products listed in Annex I. 
Article 3 
Basic Duties  
1. For each product, the basic duty to which the su ccessive reductions set out in this Agreement 
are to be applied, shall be the Most Favored Nation applied rate of duty in Romania and in the State of 
Israel on the date of entry into force of the Agreement. 
2. If, after entry into force of th is Agreement, any tariff reducti on is applied on an erga omnes 
basis, in particular reductions resulting from the GATT 1994 and the Agreement establishing the 
WTO, such reduced duties shall replace the basic du ties referred to in paragraph 1 as from that date 
when such reductions are applied. 
3. The reduced duties calculated in  accordance with paragraph 2 sh all be applied rounded of to 
the first decimal place or in case of spec ific duties to the second decimal place. 
4. The Parties shall communicate to each ot her their respective customs duties.  WT/REG199/1 
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Article 4 
Customs Duties On Imports  
1. No new customs duties on imports shall be intr oduced nor shall those already applied be 
increased in the trade between Romania and the State of Israel, as from the entry into force of this 
Agreement. 
2. Customs duties on imports for products originating in Romania and in the State of Israel shall 
be abolished in accordance with the provisions la id down in Protocol 1 to this Agreement. 
Article 5 
Charges Equivalent To Import Duties  
1. No new charges having an effect equivalent to customs duties on imports shall be introduced 
in the trade between Romania and the State of Israel  as from the entry into force of this Agreement. 
2. All charges having an effect equivalent to cu stoms duties on imports shall be abolished on the 
date of the entry into force of this Agreement. 
Article 6 
Fiscal Duties  
1. The provisions of Article 4 shall also apply to customs duties of a fiscal nature. 
2. The Parties may replace a customs duty of a fiscal  nature or the fiscal element of a customs 
duty by an internal tax, in acco rdance with the provisions of Article 16 of this Agreement. 
Article 7 
Customs Duties On Exports And Charges Having Equivalent Effect  
No new customs duties on exports or charges havi ng equivalent effect shall be introduced in 
the trade between Romania and the State of Israel as from the entry into for ce of this Agreement.  
Article 8 
Quantitative Restrictions On Imports And Measures Having Equivalent Effect  
1. No new quantitative restrictions on imports or measu res having equivalent effect shall be introduced 
in the trade between Romania and the State of Israel, as fr om the date of entry into force of this Agreement. 
2. All quantitative restrictions and measures having equiva lent effect on imports of products originating 
in Romania and in the State of Israel shall be abolishe d on the date of entry into force of the Agreement. 
Article 9 
Quantitative Restrictions On Exports And Measures Having Equivalent Effect  
1. No new quantitative restrictions on exports or measures having equivalent effect shall be 
introduced in the trade between Romania and the State of  Israel, as from the date of entry into force of 
this Agreement. WT/REG199/1 
Page 4  
 
2. All quantitative restrictions on exports from Romania and from the State of Israel and 
measures having equivalent effect sh all be abolished on the date of en try into force of the Agreement. 
CHAPTER II - AGRICULTURAL PRODUCTS 
Article 10 
Scope
 
1. The provisions of this Chapter shall apply to ag ricultural products originating in Romania and 
in the State of Israel. 
2. For the purpose of this Agreement the term “agricultural products” means products falling 
within Chapters 1 to 24 of the Harmonised Commodity Description and Coding System and the products listed in Annex I. 
Article 11 
Exchange Of Concessions
 
The Parties shall grant each other the concessions specified in Protocol 2, in accordance with 
the provisions of this Chapter and those laid down in Protocol 2. 
Taking account of: 
- the role of agriculture in their economies, 
- the development of trade in agricultural pr oducts between Romania and the State of 
Israel, 
- the particular sensitivity of the agricultural products, 
- the rules of their agricultural policies, 
- the respective provisions of the GATT 1994 and of the Agreement establishing the 
WTO, 
the Parties shall examine the possibilities of granting each other further concessions. 
Article 12 
Concessions And Agricultural Policies  
1. Without prejudice to the concessions granted under Article 11, the provisions of this Chapter 
shall not restrict in any way the pursuance of the respective agricultural policies of the Parties or 
application of any measures under such polices, incl uding the implementation of the provisions of the 
Agreement on Agriculture negotiated under the auspices of the GATT 1994 and the Agreement 
establishing the WTO. 
2. The Parties shall notify each other of the cha nges in their respectiv e agricultural policies 
pursued or measures applied, which may affect the conditions of agricultural trade between them as 
provided for in this Agreement.  On the request of a Party prompt consultations within the Joint 
Committee shall be held to examine the situation.  WT/REG199/1 
 Page 5 
 
 
Article 13 
Specific Safeguards  
Notwithstanding other provisions of this Agreemen t, in particular of Article 27 and given the 
particular sensitivity of agricultural markets, if im ports of products originating in Romania or in the 
State of Israel, which are subject to concessions  granted under this Agreement, cause serious 
disturbances to the other Party, the Parties shall im mediately enter into consultations within the Joint 
Committee with a view to finding an appropriate and agreed solution.  Pending such a solution, the 
Party concerned may take the measures it deems ne cessary, immediately notifying the other Party. 
Article 14 
Sanitary And Phytosanitary Measures  
The Parties shall apply their sanitary and phy tosanitary measures in accordance with the 
provisions of the WTO Agreement on the Applicati on of Sanitary and Phytosanitary Measures and 
other relevant agreements of the WTO.  The Partie s shall not apply their regulations in veterinary, 
plant health and health matters in an arbitrary, un justifiable or discriminatory way or as a disguised 
restriction on trade between them. 
CHAPTER III - GENERAL PROVISIONS 
Article 15 
Rules Of Origin And Co-Operation In Customs Administration  
1. Protocol 3 to this Agreement (hereinafter “P rotocol 3”) lays down the rules of origin and 
related methods of administrative co-operation. 
2. The Parties shall take appropriate measures, in cluding regular reviews by the Joint Committee 
and arrangements for administrative co-operation, to ensure that the provisions of Protocol 3 and of 
the relevant articles of this Agreement are effec tively and harmoniously app lied and to reduce, as far 
as possible, the formalities imposed on trade, as well as to achieve mutually satisfactory solutions to 
any difficulties arising from the operation of those provisions. 
Article 16 
Internal Taxation  
1. The Parties to this Agreement shall refrain from any measure or practice of an internal fiscal 
nature establishing, whether directly or indirectly , discrimination between the products originating in 
Romania and in the State of Israel. 
2. Products exported to the territory of Romania or of the State of Israel may not benefit from 
repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them. 
Article 17 
General Exceptions  
This Agreement shall not preclude prohibitions or  restrictions on imports, exports or goods in 
transit justified on grounds of:  public morality, public policy or public security;  the protection of 
health and life of humans, animals or plants, in cluding environmental measures necessary to protect WT/REG199/1 
Page 6  
 
human, animal or plant life or health;  the protec tion of national treasures possessing artistic, historic 
or archaeological value;  the protection of intellectual property or  rules relating to gold or silver or the conservation of exhaustible natural resources, if  such measures are made effective in conjunction 
with restrictions on domestic production or consumpti on.  Such prohibitions or restrictions shall not, 
however, constitute a means of arbitrary discrimination or a disguised restriction on trade between 
Romania and the State of Israel. 
Article 18 
Security Exceptions
 
In accordance with Article XXI of the GATT 1994, nothing in this Agreement shall prevent a 
Party from taking any measure, which it considers necessary: 
(a) to prevent the disclosure of informa tion contrary to its essential security 
interests; 
(b) for the protection of its essential security interests or for the implementation of 
international obligations  or national policies. 
Article 19 
State Monopolies  
1. The Parties shall adjust progressively any state monopoly of a commercial character so as to 
ensure that no discrimination, regarding the cond itions under which goods are procured and marketed 
exists between nationals of Romania and of the Stat e of Israel.  The Joint Committee will be informed 
about the measures adopted to implement this objective. 
2. The provisions of this Article shall apply to any body through which the competent 
authorities of the Parties, in law or in fact, either  directly or indirectly supervise, determine or 
appreciably influence imports or exports between Romania and the State of Israel.  These provisions shall likewise apply to monopolies delegated by the State to others. 
Article 20 
Payments
 
1. Payments in freely convertible currencies, rela ting to trade in goods between Romania and the 
State of Israel and the transfer of such payments to  the territory of the State of that Party to this 
Agreement where the creditor resides shall be free from any restrictions. 
2. The Parties shall refrain from any exchange or administrative restrictions on the grant, 
repayment or acceptance of short term internationa l trade credits or financial credits in which a 
resident of a Party participates. 
3. Any measures concerning current payments conn ected with the movement of goods shall be 
in conformity with the conditions laid down under Article VIII of the Agreement of the International 
Monetary Fund.  WT/REG199/1 
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Article 21 
Rules Of Competition Concerning Undertakings  
1. The following are incompatible with the proper functioning of this Agreement in so far as 
they may affect trade between Romania and the State of Israel: 
(a) all agreements between undertakings, decisi ons by associations of undertakings and 
concerted practices between undertakings which have as their object or effect the 
prevention, restriction or distortion of competition; 
(b) abuse by one or more undertakings of a dominant position in the territories of 
Romania or of the State of Israel as a whole or in a substantial part thereof. 
2. The provisions of paragraph 1 shall apply to the activities of all undertakings including public 
undertakings and undertakings to which the Parties grant special or exclusive rights. 
Undertakings entrusted with the operation of services of general economic interest or having 
the character of a revenue-producing monopoly, shall be  subject to the provisions of paragraph 1 in so 
far as the application of these provisions does not obst ruct the performance, in law or in fact, of the 
particular public tasks assigned to them. 
3. With regard to products referred to in Chapter II, the provisions stipulated in paragraph 1(a) 
shall not apply to such agreements, decisions and pr actices which form an integral part of a national 
market organisation. 
4. If a Party considers that a given practice is inco mpatible with paragraphs  l, 2 and 3 of this 
Article, and if such practice causes or threatens to cause serious prejudice to the interest of that Party 
or material injury to its domestic industry, it may take appropriate meas ures under the conditions and 
in accordance with the procedure laid do wn in Article 31 of this Agreement. 
Article 22 
State Aid  
1. Any aid granted by a State of a Party to this Agreement or through State resources in any 
form whatsoever which distorts or threatens to distort competition by favouring certain undertakings 
or the production of certain goods shall, in so far as  it may affect trade between Romania and the State 
of Israel, be incompatible with the pr oper functioning of this Agreement. 
2. The provisions of paragraph 1 shall not appl y to products referred to in Chapter II. 
3. The Parties shall ensure transparency in th e area of state aid, in accordance with the 
provisions of the Agreement on Subsidies a nd Countervailing Measures under the WTO/GATT 1994 
and each Party, upon request of the other Party,  will provide informati on on aid schemes and on 
particular individual cases of state aid. 
4. If a Party considers that a particular pr actice, including that in agriculture: 
- is incompatible with the terms of paragraph 1, with regard to industrial products, and 
- if such practice causes or th reatens to cause serious prejudi ce to the interest of that 
Party or material injury to its domestic industry or agriculture: WT/REG199/1 
Page 8  
 
it may take appropriate measures under the conditions  of and in accordance with the provisions laid 
down in Article 31. 
Such appropriate measures may only be taken in conformity with the procedures and under 
the conditions laid down by the Agreement on S ubsidies and Countervailing Measures, the WTO/ 
GATT 1994 and any other relevant in strument negotiated under their auspices, which are applicable 
between Romania and the State of Israel. 
Article 23 
Public Procurement
 
1. The Parties consider the liberalisation of th eir respective public procurement markets as an 
objective of this Agreement. 
2. Each Party shall grant suppliers from the Stat e of the other Party access and contract award 
procedures under a treatment no less favourable than th at accorded to suppliers of any other country, 
while maintaining each Party’s legislatio n with regard to domestic companies. 
3. The Joint Committee shall review progress in this area annually and may make 
recommendations in order to ensure transparency and a mutual opening of their respective public 
procurement markets. 
4. The Parties shall examine favourably the possib ility to accede to the relevant Agreements 
negotiated under the auspices of the WTO. 
Article 24 
Protection Of Intellectual Property  
1. The Parties shall grant and ensure protection of intellectual property rights in accordance with 
the obligations arising from the WTO Agreement on Trade-Related Aspects of Intellectual Property 
Rights including measures for the grant and enforcem ent of such rights.  The protection shall be 
extended to a level corresponding to the substantiv e standards of the multilateral Agreements which 
are specified in Annex II. 
2. For the purpose of this Agreement "intellectual pr operty", as that term is defined in the TRIPS 
Agreement, includes:  Copyright and Related Ri ghts;  Trademarks;  Geographical Indications;  
Industrial Designs;  Patents;  Layout-Designs (Topogr aphies) of Integrated Circuits and Protection of 
Undisclosed Information. 
3. The Parties shall co-operate in matters of inte llectual property.  They shall hold, upon request 
of either Party, expert consultations on these matters , in particular on activities relating to the existing 
or to future international conventions on harm onisation, administration and enforcement of 
intellectual property and on activities in this field in international organisations, such as the WTO, 
World Intellectual Property Organisation, as well as relations of the Parties with third countries on 
matters concerning intellectual property.  WT/REG199/1 
 Page 9 
 
 
Article 25 
Dumping  
If a Party finds that dumping within the meaning of Article VI of the General Agreement on 
Tariffs and Trade 1994 is taking place in trade rela tions governed by this Agreement, it may take 
appropriate measures against that practice in ac cordance with the Article VI of the General 
Agreement on Tariffs and Trade 1994 and the Agr eement on Implementation of Article VI of the 
GATT 1994, under the conditions and in accordance with  the procedure laid down in Article 31. 
Article 26 
Technical Regulations  
1. The rights and obligations of the Parties relati ng to standards or technical regulations and 
related measures shall be governed by the WT O Agreement on Technical Barriers to Trade. 
2. The Parties shall co-operate and exchange in formation in the field of standardisation, 
metrology, conformity assessment and accreditation with the aim of eliminating possible barriers in bilateral trade, including where appropriate through negotiations for the conclusion of agreements for 
the mutual  recognition  in  the  field  of confor mity assessment, in the spir it of the recommendations 
of the WTO Agreement on Technical Barriers to Trade. 
3. Each Party, upon request of the other Party, shall provide information on particular individual 
cases of standard-related measures.  
Article 27 
General Safeguards
 
Where any product is being imported in such increased quantities and under such conditions 
as to cause or threaten to cause: 
(a) serious injury to domestic producers of lik e or directly competitive products in the 
territory of the State of the importing Party;  or 
(b) serious disturbances in any sector of the economy or difficulties which could bring 
about serious deterioration in th e economic situation of a region, 
the Party concerned may take appropriate measur es under the conditions and in accordance with the 
procedures laid down in Artic le 31 of this Agreement. 
When, in view of the importing Party, the importation of a product from the territory of the 
State of the other Party is not a substantial cause of serious injury or threat thereof, that product shall 
be exempted from any safeguard measure that may be  imposed with respect to imports of that product 
from other countries. 
Article 28 
Structural Adjustment  
1. Exceptional measures of limited duration which derogate from the provisions of Article 4 
may be taken by any of the Parties in the form of increased customs duties. WT/REG199/1 
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2. These measures may only concern infant industries or certain sectors undergoing restructuring 
or facing serious difficulties, particularly where these difficulties produce important social problems. 
3. Customs duties on imports, applicable in the terr itory of the State of the Party concerned to 
products originating in the territory of the State of the other Party, introduced by these measures may not exceed 25% ad valorem and sha ll maintain the element of preference for products originating in 
the territory of the State of the other Party.  Th e total value of imports of the products which are 
subject to these measures may not exceed 15% of total imports of industrial products from the 
territory of the State of the other Party, as defined in  Chapter I during the last year for which statistics 
are available. 
4. The measures may be applied for a period not exceeding five years.  They shall cease to apply 
at the expiration of the transitional period, unless a longer duration is authorised by the Joint 
Committee. 
5. No such measures may be introdu ced in respect of a product if more than three years have 
elapsed since the elimination of a ll customs duties and quantitative rest rictions or charges or measures 
having an equivalent effect concerning that product. 
6. The Party concerned shall inform the other Pa rty of any exceptional measures it intends to 
take and, at the request of the other Party, consu ltations shall be held in the Joint Committee on such 
measures and the sectors to which they apply before they are applied.  When taking such measures the 
Party concerned shall provide the Joint Committee w ith a schedule for the elimination of the customs 
duties introduced under this Article.  This sche dule shall provide for a phasing out of these duties 
starting at the latest two years after their introduc tion, at equal annual rates.  The Joint Committee 
may decide on a different schedule. 
Article 29 
Re-Export And Serious Shortage
 
Where compliance with the provisions of Articles 7 and 9 leads to: (a) re-export towards a third country against which the State of the exporting Party 
maintains, for the product concerned, quantita tive export restrictions, export duties  or 
measures or charges having equivalent effect;  or 
(b) a serious shortage, or threat thereof, of a product essential to the State of the 
exporting Party, 
and where the situations referred to above give rise or are likely to give rise to major difficulties for 
the State of the exporting Party, that Party may ta ke appropriate measures under the conditions and in 
accordance with the procedure laid  down in Article 31.  The measures shall be non discriminatory and 
shall be eliminated when conditions no longer justify their maintenance. 
Article 30 
Fulfilment Of Obligations
 
1. The Parties shall take any general or specifi c measures required to fulfil their obligations 
under this Agreement.  They shall ensure that th e objectives set out in this Agreement are attained. 
2. If a Party considers that the other Party has faile d to fulfil an obligation under this Agreement, 
it may take appropriate measures after consultati ons within the framework of the Joint Committee  WT/REG199/1 
 Page 11 
 
 
have been concluded or a period of three months ha s elapsed from the date of the first notification to 
the other Party.  For the purpose of consultations, it shall supply the Joint Committee with all relevant 
information required for a thorough examination of the situation with a view of seeking a solution acceptable to the Parties. 
3. In the selection of measures, priority shall be given to those which l east disturb the function 
of the Agreement. 
4. These measures shall be notified immediately to the Joint Committee and shall be the subject 
of consultations within the Joint Comm ittee if the other Party so requests. 
Article 31 
Procedure For The Application Of Safeguard Measures
 
1. Before initiating the procedure for the appli cation of safeguard measures set out in the 
following paragraphs of this Article, the Parties shall endeavour to solve any differences between 
them through direct consultations. 
2. In the event of a Party subjecting imports of products liable to give rise to the situation 
referred to in Article 27, to an administrative pr ocedure having as its purpose the rapid provision of 
information on the trend of trade flows, it shall inform the other Party. 
3. Without prejudice to paragraph 7 of this Ar ticle, a Party which considers resorting to 
safeguard measures shall promptly notify the othe r Party and supply all relevant information.  
Consultations between the Parties shall take place wi thout delay in the Joint Committee with a view to 
finding an appropriate and mu tually acceptable solution. 
4. (a) As regards to Articles 25, 27 and 29 the Joint Committee shall examine the case or 
the situation and may take any decision needed to put an end to the difficulties notified by the Party 
concerned.  In the absence of such a decision within thirty five days of the matter being referred to the 
Joint Committee, the Party concerned may adopt the measures necessary in order to remedy the 
situation. 
(b) As regards to Articles 21 and 22, the Part y concerned shall give the Joint Committee 
all the assistance required in order to examine the case and, where appropriate, 
eliminate the practice objected to.  If the Part y in question fails to put an end to the 
practice objected to within the period fixe d by the Joint Committee or if the Joint 
Committee fails to reach an agreement within  thirty five days of the matter being 
referred to it, the Party concerned may adopt  the appropriate measures to deal with 
the difficulties resulting from the practice in question. 
5. The safeguard measures taken shall be immediately notified to the other Party.  They shall be 
restricted with regard to their ex tent and to their duration to what  is strictly necessary in order to 
rectify the situation giving rise to their applicati on and shall not be in excess of the injury caused by 
the practice or the difficulty in qu estion.  Priority shall be given to such measures which will least 
disturb the functioning of this Agreement.  
6. The safeguard measures taken shall be subject to periodic consultations within the Joint 
Committee with a view to their relaxation as soon as possible, or abolition when conditions no longer 
justify their maintenance. 
7. Where exceptional circumstances requiring immediate action make prior examination 
impossible, the Party concerned may, in the case s of Articles 25, 27 and 29, apply forthwith the WT/REG199/1 
Page 12  
 
provisional measures strictly necessary to remedy the situation.  The measures shall be notified without delay and consultations between the Par ties shall take place as soon as possible within the 
Joint Committee. 
Article 32 
Balance Of Payments Difficulties
 
1. The Parties shall endeavour to avoid the im position of restrictive measures including 
measures relating to imports for balance of payments purposes. 
2. Where one of the Parties is in serious balan ce of payments difficulties, or under imminent 
threat thereof, the Party concerned may, in accord ance with the relevant provisions of the General 
Agreement on Tariffs and Trade 1994, adopt restri ctive measures, including measures related to 
imports, which shall be of limited duration and ma y not go beyond what is necessary to remedy the 
balance of payments situation.  The measures sha ll be progressively relaxed as balance of payments 
conditions improve and they shall be eliminated wh en conditions no longer justify their maintenance.  
The Party concerned shall inform the other Party forthwith of their introduction and, whenever 
practicable, of a time schedule for their removal. 
3. In applying such temporary trade measures, th e Party in question will grant treatment no less 
favourable to imports originating in the territory of the State of the other Party than to imports 
originating in any other country. 
Article 33 
Evolutionary Clause  
1. Where a Party considers that it would be useful  in the interests of the economies of Romania 
and of the State of Israel to develop and to deep en the relations established by this Agreement by 
extending them to fields not covered thereby, it sh all submit a reasoned request to the other Party.  
The Parties may instruct the Join t Committee to examine such a requ est and, where appropriate, may 
take recommendations, particularly wi th a view to opening negotiations. 
2. Agreements resulting from the pro cedure referred to in paragraph 1 will be subject to the 
ratification or approval by Romania and by the St ate of Israel in accordan ce with their internal 
legislation and procedures. 
Article 34 
The Joint Committee  
1. The Parties agree to set up the Joint Committee composed of representatives of the Parties. 
2. The Joint Committee will be responsible for the administration of this Agreement and shall 
ensure its proper implementation.  It shall examin e any major issue arising within the framework of 
this Agreement and any other trade or  economic issues of mutual interest. 
3. For the purpose of the proper implementation of this Agreement the Parties shall exchange 
information and, at the request of any Party, shall hold consultations within the Joint Committee.  The 
Committee shall keep under review the possibility of further removal of the obstacles to trade between 
Romania and the State of Israel.  WT/REG199/1 
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4. The Joint Committee may take decisions in th e cases provided for in this Agreement and 
make recommendations on any other trade matter of mutual interest. 
Article 35 
Procedures Of The Joint Committee  
1. For the proper implementation of this Agreem ent the Joint Committee shall meet whenever 
necessary but at least once a year.  Each Party may request that a meeting be held. 
2. The Joint Committee shall act by common agreement. 
3. If a representative in the Joint Committee of a Party to this Agreement has accepted a 
decision subject to the fulfilment of internal legal re quirements, the decision shall enter into force, if 
no later date is contained therein, on the date of the receipt of a written notification as to the fulfilment 
of such requirements. 
4. For the purpose of this Agreement the Joint Committee shall adopt its rules of procedure 
which shall, inter alia, contain provisions for convening meetings and for the designation of the 
Chairman and his term of office. 
5. The Joint Committee may decide to set up subc ommittees and working groups as it considers 
necessary to assist it in accomplishing its tasks. 
Article 36 
Dispute Settlement  
1. Each Party may refer to the Joint Committee an y dispute relating to the application or the 
interpretation of this Agreement.  When in particul ar, a Party considers that the other Party has failed 
to carry out its obligations under this Agreement,  or has taken measures which severely distort the 
balance of trade benefits or subs tantially undermine fundamental objectives of this Agreement, it may 
refer the dispute to the Joint Committee. 
2. The Joint Committee may settle the dispute by me ans of a decision.  Each Party shall be 
bound to take measures involved in carrying out that decision. 
Article 37 
Customs Unions, Free Trade Areas And Frontier Trade  
1. This Agreement shall apply to trade relations  between Romania and the State of Israel. 
2. This Agreement shall not prevent the mainte nance or establishment of customs unions, free 
trade areas or arrangements for frontier trade whic h 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. 
3. Upon request, consultations between the Parties shall take place with in the Joint Committee 
concerning agreements establishing customs unions or  free trade areas and, where required, on other 
major issues related to their respectiv e trade policy with third countries. WT/REG199/1 
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Article 38 
Territorial Application
 
This Agreement shall apply to the customs terr itories of Romania and of the State of Israel. 
Article 39 
Annexes And Protocols  
The Annexes and the Protocols to this Agreemen t are an integral part of it.  The Joint 
Committee may decide, taking into account the procedur es of paragraph 3 of Article 35, to amend the 
Annexes and Protocols. 
Article 40 
Amendments  
Amendments to this Agreement, other than those referred to in Article 39, which are 
approved by the Joint Committee, shal l enter into force on the date of receipt of the last notification 
from the Parties, confirming that all internal lega l procedures required by Romania and by the State of 
Israel for the entry into fo rce have been completed.  
Article 41 
Entry Into Force  
1. This Agreement shall be ratified by Romania a nd by the State of Israel in accordance with 
their own internal legal procedures. 
2. This Agreement shall enter into force on the first day of the second month following the date 
of receipt of the last notification from the Parties confirming that all the internal legal procedures referred to in the first paragraph of this Article have been completed. 
Article 42 
Validity And Termination
 
1. This Agreement is concluded for an unlimited period. 
2. Either Party may denounce this Agreement by mean s of written notification to the other Party.  
This Agreement shall cease to apply six months after the date of the receipt of the respective 
notification.   
IN WITNESS WHEREOF the undersigned plenipoten tiaries, being duly authorised thereto, 
have signed this Agreement. 
DONE in Bucharest, this January 30 2001, whic h corresponds to the 6 day of Shevat 5761, 
each in two originals in the Romanian, Hebrew and English languages, all texts being equally 
authentic. In case of differences of interpre tation, the English text shall prevail. 
 
FOR THE GOVERNMENT OF 
ROMANIA  
  
FOR THE GOVERNMENT OF 
THE STATE OF ISRAEL 
 
__________