Canada Free Trade Agreement with Israel

The Canada-Israel Free Trade Agreement: A Boost for Trade and Investment

Canada and Israel share a long-standing relationship that encompasses various fields such as trade, innovation, education, and security. The Canada-Israel Free Trade Agreement (CIFTA) has been in effect since 1997, and in recent years, both countries have been working towards expanding the agreement to further facilitate trade and investment.

The CIFTA aims to eliminate tariffs and non-tariff barriers on goods and services traded between the two nations, which makes it easier for businesses to enter new markets and access new customers. The agreement also includes provisions on investment protection, intellectual property, and government procurement, which provide a rules-based framework that encourages firms to invest in each other`s economies.

The Canada-Israel trade relationship has been growing steadily over the years, reaching a record high of CAD 1.7 billion in 2020. Israel is Canada`s 28th largest trading partner, and Canada is Israel`s 15th largest trading partner. The bilateral trade relationship is diverse and covers a range of sectors such as aerospace, life sciences, information and communications technology, agriculture and food, and renewable energy.

Under the updated CIFTA, Canadian companies can bid on Israeli government procurement contracts worth over CAD 100,000, providing them with access to Israel`s growing market. Moreover, the agreement provides Canadian investors with predictable and transparent rules on investment, which contributes to increased investment flows between the two countries.

The updated CIFTA also includes important modernization provisions that reflect the changing nature of trade and commerce, such as e-commerce and digital trade. The agreement ensures that Canadian companies can benefit from the innovative and dynamic Israeli economy, which is known for its tech startups and cutting-edge research and development.

In addition to the commercial benefits, the CIFTA also has strategic implications for both countries. The agreement strengthens the Canada-Israel relationship and helps the two countries work together on issues of mutual interest, such as climate change, counterterrorism, and regional security.

In conclusion, the updated Canada-Israel Free Trade Agreement is a win-win for both countries. It provides Canadian businesses with preferential market access to Israel and enables Israeli firms to expand their operations in Canada. The agreement also reinforces the strong diplomatic ties between the two countries and creates opportunities for collaboration on important global issues. With the updated agreement in place, the Canada-Israel trade relationship is poised to grow even stronger in the coming years.

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