Israel ratifies a free trade agreement with South Korea

Israel is accelerating efforts to sign free trade agreements with East Asian economic powers, and Israel’s vehicle market is likely to benefit from this in the coming months.

Sources close to the case have informed “Globes” that the free trade agreement between Israel and South Korea, which was formally signed last year, has been formally ratified by Israel over the past few weeks – a major step that brings the implementation of free trade. make arrangements. The agreement must now be formally ratified by the Korean parliament, which according to the Korean media should happen in the coming weeks with the full support of all parties across the political spectrum.

Israel’s foreign trade administration in the Ministry of Economy and Industry expects that the 7% excise duty on all Korean cars imported into Israel will be canceled when the agreement enters into force. But sources in the Israeli car industry are trying to dampen expectations, insisting that the abolition of excise duty will only help moderate the sharp price increases dictated by manufacturers due to increased production costs, and will not be reflected in an actual fall in current prices. . .

At the same time, Israel is also expected to sign a free trade agreement with Vietnam later this year. Earlier this week, an Israeli importer signed an agreement to import Vietnam’s Vinfast electric cars from the fourth quarter, and the free trade agreement will also reduce the prices of these cars, which include 7% excise duty. The Foreign Trade Administration said: “Negotiations to prepare a free trade agreement with Vietnam are in advanced stages. The parties hope to conclude negotiations by 2022. The Foreign Trade Administration stresses that the agreement will require ratification by both countries before it enters into force.”

The third free trade agreement negotiated with an East Asian country is the largest of all – China, which is also a major player in the car market. Last month, Chinese television station CGTN reported that Israel and China had agreed to speed up negotiations on the free trade agreement in a telephone conversation between Israeli Foreign Minister Yair Lapid and his Chinese counterpart Wang Yi.

Published by Globes, Israel business news – – on April 27, 2022.

© Copyright by Globes Publisher Itonut (1983) Ltd., 2022.

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