Effectiveness of the Free Trade Agreement Between Argentina and Israel

The Free Trade Agreement executed between MERCOSUR and the State of Israel (“FTA”) was executed in Montevideo, Uruguay on December 18, 2007, and was approved by MERCOSUR’s Board (“Consejo del Mercado Común”) by Decision No. 50 dated December 18, 2007.

Argentina approved the FTA through Law No. 26,670, signed into law on April 14, 2011 (which also approved the “Framework Agreement” for Commerce between MERCOSUR and the State of Israel, executed in Montevideo, Uruguay, on December 8, 2005).

The TLC establishes a free trade area between the parties and sets forth milestones for eliminating commercial barriers (especially tariffs) in the quest for a stronger economic integration and cooperation that benefits the economies of the parties.

The TLC also sets forth guidelines for cooperation in customs matters and for the application of rules of origin. Additionally, it establishes that the parties will consider potential negotiations aimed at easing market access for investments and services within the framework of the General Agreement on Trade in Services.

Furthermore, aiming at promoting reciprocal awareness of commercial and investment opportunities, the parties will provide support for activities promoting commerce such as seminars, commercial missions, and fairs.

The rules for establishing anti-dumping or countervailing duties are not within the scope of the FTA. Therefore, local regulation and the rules of the World Trade Organization will still apply on those matters. Establishing import licenses will be possible under the FTA, so long as they comply with the requirements of Article XI of GATT 1994.

The Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (the WTO Agreement on Customs Valuation) shall apply to customs valuation matters.

Imports shall be recorded with Customs’ “Sistema Informático Maria (SIM)” under code LML-03, until new arrangements are made.