WORLD TRADE
ORGANIZATIONWT/REG110/1
7 November 2000
(00-4705)
Committee on Regional Trade Agreements Original:  English
EURO-MEDITERRANEAN AGREEMENT BETWEEN
THE EUROPEAN COMMUNITIES AND ISRAEL
The following text reproduces the Euro-Mediterranean Agreement establishing an association
between the European Communities and their Member States, of the one part, and the State of Israel,of the other part.
1
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EURO-MEDITERRANEAN AGREEMENT ESTABLISHING AN ASSOCIATION
BETWEEN THE EUROPEAN COMMUNITIES AND THEIR MEMBERS STATES,
OF THE ONE PART, AND THE STATE OF ISRAEL, OF THE OTHER PART
The Kingdom of Belgium, the Kingdom of Denm ark, the Federal Republic of Germany, the
Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the
Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the
Portuguese Republic, the Republic of Finland, th e Kingdom of Sweden, the United Kingdom of Great
Britain and Northern Ireland,
Contracting Parties to the Treaty establishing The European Community and the Treaty establishing
the European Coal and Steel Community,
hereinafter referred to as the "Member States", andThe European Community , the European Coal  and Steel Community , hereinafter referred to
as "the Community",
of the one part, andThe State of Israel , hereinafter referred to as 'Israel',
of the other part,Considering  the importance of the existing traditional links between the Community, its
Member States and Israel, and the common values that they share;
                                                     
1 The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).  They are also available at the Europa web site,
http://europa.eu.int/comm/external_relations/med_m ideast/euro_med_partnership/israel_asso_agree.htm".WT/REG110/1
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Considering  that the Community, its Member States and Israel wish to strengthen those links
and to establish lasting relations, based on reciprocity and partnership, and promote a further
integration of Israel's economy into the European economy;
Considering  the importance which the Parties attach to the principle of economic freedom and
to the principles of the United Nations Charter, particularly the observance of human rights and
democracy, which form the very basis of the Association;
Conscious of the need to associate their efforts to strengthen political stability and economic
development through the encouragement of regional cooperation;
Desirous  of establishing and developing regular political dialogue on bilateral and
international issues of mutual interest;
Desirous  of maintaining and intensifying a dialogue on economic, scientific, technological,
cultural, audiovisual and social matters to the benefit of the Parties;
Considering  the respective commitments of the Comm unity and Israel to free trade, and in
particular to compliance with the rights and obligations arising out of the General Agreement on
Tariffs and Trade (GATT) as it results from the negotiations of the Uruguay Round;
Convinced  that the Association Agreement will create a new climate for their economic
relations and in particular for the development of trade, investment and economic and technological
cooperation,
Have agreed as follows:
Article 1
1. An association is hereby established between the Community and its Member States, of the
one part, and Israel, of the other part.
2. The aims of this Agreement are:
- to provide an appropriate framework for political dialogue, allowing the development
of close political relations between the Parties,
- through the expansion, inter alia , of trade in goods and services, the reciprocal
liberalisation of the right of establishment, the further progressive liberalisation of
public procurement, the free movement of capital and the intensification of
cooperation in science and technology to promote the harmonious development of
economic relations between the Community and Israel and thus to foster in the
Community and in Israel the advance of economic activity, the improvement of livingand employment conditions, and increased productivity and financial stability,
- to encourage regional cooperation with a view to the consolidation of peaceful
coexistence and economic and political stability,
- to promote cooperation in other areas which are of reciprocal interest.WT/REG110/1
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Article 2
Relations between the Parties, as well as all the provisions of the Agreement itself, shall be
based on respect for human rights and democratic principles, which guides their internal and
international policy and constitutes an essential element of this Agreement.
TITLE I
Political Dialogue
Article 3
1. A regular political dialogue shall be established between the Parties.  It shall strengthen their
relations, contribute to the development of a lasting partnership and increase mutual understanding
and solidarity.
2. The political dialogue and cooperation shall in particular:
- develop better mutual understanding and an increasing convergence of positions on
international issues, and in particular on those issues likely to have substantial effects
on one or the other Party,
- enable each Party to consider the position and interests of the other,- enhance regional security and stability.
Article 4
The political dialogue shall cover all subjects of common interest, and shall aim to open the
way to new forms of cooperation with a view to common goals, in particular peace, security and
democracy.
Article 5
1. The political dialogue shall facilitate the purs uit of joint initiatives and shall take place in
particular:
(a) at ministerial level;(b) at senior official level (political directors) between representatives of Israel, of the
one part, and of the Council Presidency and the Commission, of the other;
(c) by taking full advantage of all diplomatic channels including regular briefings by
officials, consultations on the occasion of international meetings and contacts
between diplomatic representatives in third countries;
(d) by providing regular information to Israel  on issues relating to the common foreign
and security policy, which shall be reciprocated;
(e) by any other means which would make a useful contribution to consolidating,
developing and stepping up this dialogue.WT/REG110/1
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2. There shall be a political dialogue between the European Parliament and the Israeli Knesset.
TITLE II
Free Movement of Goods
CHAPTER 1
Basic Principles
Article 6
1. The free trade area between the Community and Israel shall be reinforced according to the
modalities set out in this Agreement and in conformity with the provisions of the General Agreement
on Tariffs and Trade of 1994 and of other multilateral agreements on trade in goods annexed to the
Agreement establishing the World Trade Organisation (WTO), hereinafter referred to as the "GATT".
2. The Combined Nomenclature and the Israeli customs tariff shall be used for the classification
of goods in trade between the Parties.
CHAPTER 2
Industrial Products
Article 7
The provisions of this Chapter shall apply to  products originating in the Community and in
Israel other than those listed in Annex II to the Treaty establishing the European Community and, as
far as products originating in Israel are concer ned, other than those listed in Annex I to this
Agreement.
Article 8
Customs duties on imports and exports, and any charges having equivalent effect, shall be
prohibited between the Community and Israel. This shall also apply to customs duties of a fiscal
nature.
Article 9
1. (a) The provisions of this chapter shall not preclude the retention by the Community of
an agricultural component in respect of goods originating in Israel and listed in
Annex II to this Agreement, with the exception of those listed in Annex III.
(b) This agricultural component shall be calculated on the basis of the difference between
the prices on the Community market of the agricultural products considered to have
been used in the production of the goods and the prices of imports from third
countries, where the total cost of the basic products in question is higher in theCommunity. The agricultural component may take the form of a flat-rate amount or
an ad valorem  duty. In cases where this agricultural component has been subject to
tariffication it will be replaced by the respective specific duty.WT/REG110/1
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2. (a) The provisions of this chapter shall not preclude the retention by Israel of an
agricultural component in respect of goods originating in the Community and listed in
Annex IV, with the exception of those listed in Annex V.
(b) This agricultural component shall be calculated mutatis mutandis  on the basis of the
criteria referred to in paragraph 1(b).  It may take the form of a flat-rate amount or an
ad valorem  duty.
(c) Israel may enlarge the list of goods to which this agricultural component applies,
provided the goods are other than those listed in Annex V and are included in
Annex II to this Agreement.  Before its adoption, this agricultural component shall be
notified for examination to the Association Committee which may take any decisionneeded..
3. By way of derogation from Article 8, the Comm unity and Israel may apply to the goods listed
respectively in Annexes III and V the duties indicated in respect of each of the goods.
4. Where, in trade between the Community and Israel, the charge applicable to a basic
agricultural product is reduced, or as a result of mutual concessions for processed agricultural
products, the agricultural components applied in accordance with paragraphs 1 and 2 may be reduced.
5. The reduction referred to in paragraph 4, the list of goods concerned and, where applicable,
the tariff quotas to which the reduction refers, shall be established by the Association Council.
6. The list of goods which are subject to a concession in form of a reduced agricultural
component in trade between the Community and Israel as well as the extent of these concessions are
set out in Annex VI.
CHAPTER 3
Agricultural Products
Article 10
The provisions of this Chapter shall apply to products originating in the Community and
Israel and listed in Annex II to the Treaty establishing the European Community.
Article 11
The Community and Israel shall progressively establish a greater liberalisation of their trade
in agricultural products of interest to both Parties.  From 1 January 2000 the Community and Israel
shall examine the situation in order to determine the measures to be applied by the Community and
Israel from 1 January 2001 in accordance with this objective.
Article 12
Agricultural products originating in Israel list ed in Protocols 1 and 3 on importation into the
Community shall be subject to the arrangements set out in those Protocols.WT/REG110/1
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Article 13
Agricultural products originating in the Community listed in Protocols 2 and 3 on importation
into Israel shall be subject to the arrangements set out in those Protocols.
Article 14
Without prejudice to Article 11 and taking account of the volume of trade in agricultural
products between them and of their particular sensitivity, the Community and Israel shall examine in
the Association Council, product by product and on an orderly and reciprocal basis, the possibility of
granting each other further concessions.
Article 15
The Community and Israel agree to examine, at the latest three years after entry into force of
the Agreement, the possibility of granting each other, on the basis of reciprocity and mutual interest,
concessions in trade in fisheries products.
CHAPTER 4
Common Provisions
Article 16
Quantitative restrictions on imports and all measures having equivalent effect shall be
prohibited between the Community and Israel.
Article 17
Quantitative restrictions on exports and all measures having equivalent effect shall be
prohibited between the Community and Israel.
Article 18
1. Products originating in Israel shall not on  importation into the Community be accorded a
treatment more favourable than that which the Member States apply among themselves.
2. Application of the provisions of this Agreement shall be without prejudice to Council
Regulation (EEC) No. 1911/91 of 26 June 1991 on the application of the provisions of Community
law to the Canary Islands.
Article 19
1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing,
whether directly or indirectly, discrimination between the products of one Party and like products
originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment of
indirect internal taxation in excess of the amount of indirect taxation imposed on them directly or
indirectly.WT/REG110/1
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Article 20
1. In the event of specific rules being established as a result of the implementation of its
agricultural policy or of any alteration of the cu rrent rules or in the event of any alteration or
extension of the provisions relating to the impl ementation of the agricultural policy, the Party in
question may amend the arrangements resulting from the Agreement in respect of the products which
are the subject of those rules or alterations.
2. In such cases the Party in question shall take due account of the interests of the other Party.
To this end the Parties may consult each other within the Association Council.
Article 21
1. The Agreement shall not preclude the maintenance or establishment of customs unions,
free-trade areas or arrangements for frontier trade, except in so far as they alter the trade arrangements
provided for in the Agreement.
2. Consultation between the Community and Israel shall take place within the Association
Council concerning agreements establishing cust oms unions or free-trade areas and, where required,
on other major issues related to their respective trade policy with third countries.  In particular, in the
event of a third country acceding to the European Un ion, such consultation shall take place so as to
ensure that account can be taken of the mutual interests of the Community and Israel.
Article 22
If one of the Parties finds that dumping is taking place in trade with the other Party within the
meaning of Article VI of the GATT, it may take appropriate measures against this practice inaccordance with the Agreement on implementation of Article VI of the GATT and with its relevant
internal legislation, under the conditions and in accordance with the procedures laid down in
Article 25.
Article 23
Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause:
- serious injury to domestic producers of like or directly competitive products in the
territory of one of the Parties, or
- serious disturbances in any sector of the economy, or
- difficulties which could bring about serious deterioration in the economic situation of
a region,
the Community or Israel may take appropriate measures under the conditions and in accordance with
the procedures laid down in Article 25.WT/REG110/1
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Article 24
Where compliance with the provisions of Article 17 leads to:(i) re-export towards a third country against which the exporting Party maintains, for the
product concerned, quantitative export restrictions, export duties, or measures having
equivalent effect, or
(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party,
and where the situations referred to above give rise, or are likely to give rise, to major difficulties for
the exporting Party, that Party may take appropriate measures under the conditions and in accordancewith the procedures laid down in Article 25.  The measures shall be non-discriminatory and be
eliminated when conditions no longer justify their maintenance.
Article 25
1. In the event of the Community or Israel subjecting imports of products liable to give rise to
the difficulties referred to in Article 23, to an administrative procedure, the purpose of which is to
provide rapid information on the trend of trade flows, it shall inform the other Party.
2. In the cases specified in Articles 22, 23 and 24, before taking the measures provided for
therein or, as soon as possible in cases to which paragraph 3(d) applies, the Party in question shall
supply the Association Committee with all relevant information required for a thorough examination
of the situation with a view to seeking a solution acceptable to the Parties.
In the selection of appropriate measures, priority shall be given to those which least disturb
the functioning of the Agreement.
The safeguard measures shall be notified immediately to the Association Committee and shall
be the subject of periodical consultations within the Committee, particularly with a view to their
abolition as soon as circumstances permit.
3. For the implementation of paragraph 2, the following provisions shall apply:
(a) as regards Article 22, the Association Committee shall be informed of the dumping
case as soon as the authorities of the importing Party have initiated an investigation.
If no end has been put to the dumping or no other satisfactory solution has been
reached within 30 days of the notification being made, the importing Party may adoptthe appropriate measures;
(b) as regards Article 23, the difficulties arising from the situation referred to in that
Article shall be referred for examination to the Association Committee, which may
take any decision needed to put an end to such difficulties.
If the Association Committee or the exporting Party has not taken a decision putting
an end to the difficulties or no other satisfactory solution has been reached within 30
days of the matter being referred, the importing Party may adopt the appropriate
measures to remedy the problem.  These measures must not exceed the scope of whatis necessary to remedy the difficulties which have arisen;WT/REG110/1
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(c) as regards Article 24, the difficulties arising from the situations referred to in that
Article shall be referred for examination to the Association Committee.
The Association Committee may take any decision needed to put an end to the
difficulties. If it has not taken such a decision within 30 days of the matter beingreferred to it, the exporting Party may apply appropriate measures on the exportation
of the product concerned;
(d) where exceptional circumstances requiring immediate action make prior information
or examination, as the case may be, impossible, the Party concerned may, in the
situations specified in Articles 22, 23 and 24 apply forthwith such precautionary
measures as are strictly necessary to remedy the situation, and shall inform the otherParty immediately.
Article 26
When one or more Member States of the Community or Israel is in serious balance of
payments difficulties or under threat thereof, the Community or Israel, as the case may be, may, in
accordance with the conditions laid down within the framework of the GATT and with Articles VIII
and XIV of the Articles of Agreement of the International Monetary Fund, adopt restrictive measures
which shall be of limited duration and may not go beyond what is necessary to remedy the
balance-of-payments situation. The Community or Israel, as the case may be, shall inform the otherParty forthwith and present to the other Party, as soon as possible, a time schedule for their removal.
Article 27
Nothing in this Agreement shall 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; the protection of national treasures possessing artistic,
historic or archaeological value; the protection of intellectual, industrial and commercial property or
rules concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a
means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 28
The concept of "originating products" for the application of this title and the methods of
administrative cooperation relating to them are set out in Protocol 4.
TITLE III
Right of Establishment and Supply of Services
Article 29
1. The Parties agree to widen the scope of the Agreement to cover the right of establishment of
firms of one Party in the territory of another Party and the liberalisation of the provision of services by
one Party's firms to consumers of services in the other.
2. The Association Council shall make the n ecessary recommendations for the implementation
of the objective described in paragraph 1.  In making such recommendations, the Association Council
shall take account of past experience of implem entation of the reciprocal most-favoured-nationWT/REG110/1
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treatment and of the obligations of each Party under the General Agreement on Trade in Services,
hereinafter referred to as the "GATS", particularly those in Article V of the latter.
3. The Association Council shall make a first assessment of the achievement of this objective no
later than three years after the Agreement enters into force.
Article 30
1. At the outset, each of the Parties reaffirms its obligations under the GATS, particularly the
obligation to grant reciprocal most-favoured-nation treatment in the services sectors covered by that
obligation.
2. In accordance with the GATS, this treatment shall not apply to:
(a) advantages accorded by either Party under the terms of an agreement of the type
defined in Article V of the GATS nor to measures taken on the basis of such an
agreement;
(b) other advantages granted in accordance with the list of most-favoured-nation
exemptions annexed by either Party to the GATS.
TITLE IV
Capital Movements, Payments, Public Procurement, Competition and Intellectual Property
CHAPTER 1
Capital Movements and Payments
Article 31
Within the framework of the provisions of this Agreement, and subject to the provisions of
Articles 33 and 34, there shall be no restrictions between the Community of the one part, and Israel ofthe other part, on the movement of capital and no discrimination based on the nationality or on the
place of residence of their nationals or on the place where such capital is invested.
Article 32
Current payments connected with the movement of goods, persons, services or capital within
the framework of this Agreement shall be free of all restrictions.
Article 33
Subject to other provisions in this Agreement and other international obligations of the
Community and Israel, the provisions of Articles  31 and 32 shall be without prejudice to the
application of any restriction which exists between them on the date of entry into force of this
Agreement, in respect of the movement of capi tal between them involving direct investment,
including in real estate, establishment, the provision of financial services or the admission ofsecurities to capital markets.
However, the transfer abroad of investments made  in Israel by Community residents or in the
Community by Israeli residents and of any profit stemming therefrom shall not be affected.WT/REG110/1
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Article 34
Where, in exceptional circumstances, movements of capital between the Community and
Israel cause, or threaten to cause, serious difficulties for the operation of exchange rate policy ormonetary policy in the Community or Israel, the Co mmunity or Israel respectively may, in conformity
within the conditions laid down within the framework of the GATS and with Articles VIII and XIV of
the Articles of Agreement of the International Monetary Fund, take safeguard measures with regard to
movements of capital between the Community and Israel for a period not exceeding six months if
such measures are strictly necessary.
CHAPTER 2
Public Procurement
Article 35
The Parties shall take measures with a view to a mutual opening of their respective
government procurement markets and the procurement markets of undertakings operating in the
utilities sectors for purchase of goods, works and services beyond the scope of what has been
mutually and reciprocally covered under the Government Procurement Agreement concluded in theframework of the WTO.
CHAPTER 3
Competition
Article 36
1. The following are incompatible with the proper functioning of the Agreement, in so far as
they may affect trade between the Community and Israel:
(i) all agreements between undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
(ii) abuse by one or more undertakings of a dominant position in the territories of the
Community or Israel as a whole or in a substantial part thereof;
(iii) any public aid which distorts or threatens to distort competition by favouring certain
undertakings or the production of certain goods.
2. The Association Council shall, within three ye ars of the entry into force of the Agreement,
adopt by decision the necessary rules for the implementation of paragraph 1.  Until these rules are
adopted, the provisions of the Agreement on interpretation and application of Articles VI, XVI
and XXIII of the GATT shall be applied as the rules for the implementation of paragraph 1(iii).
3. Each Party shall ensure transparency in the area of public aid, inter alia , by reporting annually
to the other Party on the total amount and the distribution of the aid given and by providing, upon
request, information on aid schemes.  Upon request by one Party, the other Party shall provide
information on particular individual cases of public aid.WT/REG110/1
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4 With regard to agricultural products referred to in Title II, Chapter 3, paragraph 1(iii) does not
apply.
5. If the Community or Israel considers that a particular practice is incompatible with the terms
of paragraph 1 and:
- is not adequately dealt with under the implementing rules referred to in paragraph 2,
or
- in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interest of the other Party or material injury to its domestic industry,including its services industry,
it may take appropriate measures after consultation within the Association Committee or after
30 working days following referral for such consultation.
With reference to practices incompatible with paragraph 1(iii), such appropriate measures,
when the GATT is applicable to them, may only be adopted in accordance with the procedures and
under the conditions laid down by the GATT or by any other relevant instrument negotiated under its
auspices and applicable to the Parties.
6. Notwithstanding any provisions to the contrary  adopted in accordance with paragraph 2, the
Parties shall exchange information taking into a ccount the limitations imposed by the requirements of
professional and business secrecy.
Article 37
1. The Member States and Israel shall progressively adjust any State monopolies of a
commercial character, so as to ensure that, by the end of the fifth year following the entry into force of
this Agreement, no discrimination regarding the conditions under which goods are procured and
marketed exists between nationals of the Member States and Israel.
2. The Association Committee shall be informed about the measures adopted to implement this
objective.
Article 38
With regard to public undertakings and undertakings to which special or exclusive rights have
been granted, the Association Council shall ensure th at as from the fifth year following the date of
entry into force of this Agreement there is neither enacted nor maintained any measure distorting trade
between the Community and Israel to an extent cont rary to the Parties' interests.  This provision
should not obstruct the performance in law or in fact of the particular tasks assigned to those
undertakings.
CHAPTER 4
Intellectual, Industrial and Commercial Property
1. Pursuant to the provisions of this Article and of Annex VII, the Parties shall grant and ensure
adequate and effective protection of intellectual, industrial and commercial property rights inWT/REG110/1
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accordance with the highest international standards, including effective means of enforcing such
rights.
2. The implementation of this Article and of Annex VII shall be regularly reviewed by the
Parties. If problems in the area of intellectual, industrial and commercial property affecting tradingconditions were to occur, urgent consultation within the Association Committee shall be undertaken,
at the request of either Party, with a view to reaching mutually satisfactory solutions.
TITLE V
Scientific and Technological Cooperation
Article 40
The Parties undertake to intensify scientific and technological cooperation.  Detailed
arrangements for the implementation of this obje ctive shall be set out in separate agreements
concluded for this purpose.
TITLE VI
Economic Cooperation
Article 41
Objectives
The Community and Israel undertake to promote economic cooperation to their mutual
benefit and on the basis of reciprocity in accordance with the overall objectives of the Agreement.
Article 42
Scope
1. Cooperation shall focus principally on sectors relevant to the rapprochement of the economies
of the Community and Israel or producing growth or employment. The main sectors of cooperation
are set out in Articles 44 to 57, without prejudice to the possibility of including cooperation in other
sectors of interest to the Parties.
2. Conservation of the environment and ecological balance shall be taken into account in the
implementation of the various sectors of economic cooperation to which it is relevant.
Article 43
Methods and modalities
Economic cooperation shall be implemented in particular by:
(a) a regular economic dialogue between the Parties, which covers all areas of economic
policy and, in particular, fiscal policy, balance of payments and monetary policy, and
which shall enhance close collaboration between the authorities concerned withWT/REG110/1
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economic policy, each in their respective areas of competence within the Association
Council or any other forum design ated by the Association Council;
(b) a regular exchange of information and ideas in every sector of cooperation including
meetings of officials and experts;
(c) transfer of advice, expertise and training;(d) implementation of joint actions such as seminars and workshops;(e) technical, administrative and regulatory assistance;
(f) the dissemination of information on cooperation.
Article 44
Regional cooperation
The Parties shall encourage operations designed to promote regional cooperation.
Article 45
Industrial cooperation
The Parties shall promote cooperation in particular in the following areas:
- industrial cooperation between economic operators in the Community and in Israel,
including access for Israel to Community networks for the rapprochement of
businesses and decentralised cooperation,
- diversification of industrial output in Israel,- cooperation between small and medium-sized enterprises in the Community and
Israel,
- easier access to investment finance,- information and support services,
- stimulation of innovation.
Article 46
Agriculture
The Parties shall focus cooperation in particular on:- support for policies implemented by them to diversify production,
- promotion of environment-friendly agriculture,
- closer relations between businesses, groups and organisations representing trades and
professions in Israel and in the Community on a voluntary basis,WT/REG110/1
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- technical assistance and training,
- harmonisation of phytosanitary and veterinary standards,
- integrated rural development, including improvement in basic services and
development of associated economic activities,
- cooperation among rural regions, exchange of experience and know-how concerning
rural development.
Article 47
Standards
The Parties shall aim to reduce differences in standardisation and conformity assessment.  To
this end the Parties shall conclude where appropriate agreements on mutual recognition in the field of
conformity assessment.
Article 48
Financial services
The Parties shall cooperate, where appropriate through the conclusion of agreements, on the
adoption of common rules and standards, inter alia, for accounting and for supervisory and regulatory
systems of banking, insurance and other financial sectors.
Article 49
Customs
1. The Parties commit themselves to developing customs cooperation to ensure that the
provisions on trade are observed.  For this purpose they shall establish a dialogue on customs matters.
2. Cooperation shall focus on the simplification and computerisation of customs procedures,
which shall, in particular, take the form of exchange of information among experts and vocational
training.
3. Without prejudice to other forms of cooperation envisaged in this agreement, notably for the
fight against drugs and money laundering, the Parties' administrations shall provide mutual assistancein accordance with the provisions of Protocol 5.
Article 50
Environment
1. The Parties shall promote cooperation in the tasks of preventing deterioration of the
environment, controlling pollution and ensuring the rational use of natural resources, with a view to
ensuring sustainable development and promoting regional environmental projects.
2. Cooperation shall focus, in particular, on:
- desertification,WT/REG110/1
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- the quality of Mediterranean water and the control and prevention of marine
pollution,
- waste management,
- salinization,
- environmental management of sensitive coastal areas,- environmental education and awareness,- the use of advanced tools of environmental management, environmental monitoring
methods and surveillance, including the use of environmental information systems
(EIS) and environmental impact assessment,
- the impact of industrial development on the environment in general and the safety of
industrial facilities in particular,
- the impact of agriculture on soil and water quality.
Article 51
Energy
1. The Parties consider that global warming and the depletion of fossil fuel sources are a serious
threat to mankind.  The Parties shall therefore cooperate with a view to developing sources of
renewable energy, to ensure the use of fuels with  the purpose of limiting pollution of the environment
and promoting energy conservation.
2. The Parties shall endeavour to encourage operations designed to favour regional cooperation
on matters such as transit of gas, oil and electricity.
Article 52
Information Infrastructures and Telecommunications
The Parties shall promote cooperation in the development of information infrastructures and
telecommunications to their mutual benefit.  Cooperation shall focus primarily on pursuing actions
related to research and technological development, harmonisation of standards and modernisation oftechnology.
Article 53
Transport
1. The Parties shall promote cooperation in the field of transport and related infrastructure, in
order to improve the efficiency of movement of passengers and of goods, both at bilateral and
regional level.WT/REG110/1
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2. Cooperation shall focus, in particular, on:
- achieving high standards of safety and security in maritime and air transport; for this
purpose the Parties shall establish consultations at expert level to exchange
information,
- standardisation of technical equipment, in particular in combined, multimodal
transport and transhipment,
- promotion of joint technological and research programmes.
Article 54
Tourism
The Parties shall exchange information on planned tourism development and tourism
marketing projects, tourism shows, exhibitions, conventions and publications.
Article 55
Approximation of Laws
The Parties shall use their best endeavours to approximate their respective laws in order to
facilitate the implementation of this Agreement.
Article 56
Drugs and Money Laundering
1. The Parties shall cooperate with a view in particular to:
- improving the effectiveness of policies and measures to counter the supply of, and
illicit trafficking in, narcotic drugs and psychotropic substances and the reduction of
the abuse of these products,
- encouraging a joint approach to reducing demand,- preventing the use of the Parties' financial systems to launder capital arising from
criminal activities in general and drug trafficking in particular.
2. Cooperation shall take the form of exchange of information and, where appropriate, joint
activities on:
- drafting and implementation of national legislation,- monitoring trade in precursors,- establishment of social and health institutions and information systems and the
implementation of projects along these lines, including training and research projects,WT/REG110/1
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- implementation of the highest possible international standards relating to the fight
against money laundering and the misuse of chemical precursors, in particular those
adopted by the Financial Action Task Force (FATF) and the Chemical Action Task
Force (CATF).
3. The Parties shall determine together, in accordance with their respective legislation, the
strategies and cooperation methods appropriate for attaining these objectives.  Their operations, other
than joint operations, shall form the subject of consultations and close coordination.
The relevant public and private sector bodies, in accordance with their own powers, working
with the competent bodies of Israel, the Community and its Member States, may take part in these
operations.
Article 57
Migration
The Parties shall cooperate with a view in particular to:- defining areas of mutual interest concerning policies on immigration,- increasing the effectiveness of measures aimed at preventing or curbing illegal
migratory flows.
TITLE VII
Cooperation on Audiovisual and Cultural Matters, Information and Communication
Article 58
1. The Parties shall undertake to promote cooperation in the audiovisual sector to their mutual
benefit.
2. The Parties shall seek ways of associating Israel with Community initiatives in this sector,
thus enabling cooperation in such areas as coproduction, training, development and distribution.
Article 59
The Parties shall promote cooperation on education, training and youth exchange.  The areas
of cooperation may include in particular:  youth exchanges, cooperation among universities and other
educational/training institutions, language training, translation and other ways of promoting better
mutual understanding of their respective cultures.
Article 60
The Parties shall promote cultural cooperation.  The areas of cooperation may include in
particular translation, exchange of works of art and artists, conservation and restoration of historic and
cultural monuments and sites, training of persons working in the cultural field, the organisation ofEuropean-oriented cultural events, raising mutual awareness and contributing to the dissemination of
information on outstanding cultural events.WT/REG110/1
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Article 61
The Parties shall promote activities of mutual interest in the field of information and
communication.
Article 62
Cooperation shall be implemented in particular through:(a) a regular dialogue between the Parties;(b) a regular exchange of information and ideas in every sector of cooperation including
meetings of officials and experts;
(c) transfer of advice, expertise and training;(d) implementation of joint actions such as seminars and workshops;(e) technical, administrative and regulatory assistance;(f) the dissemination of information on cooperation initiatives.
TITLE VIII
Social Matters
Article 63
1. The Parties shall conduct a dialogue covering all aspects of mutual interest.  The dialogue
shall cover in particular questions relating to social problems of post-industrial societies, such as
unemployment, rehabilitation of disabled people, equal treatment for men and women, labour
relations, vocational training, work safety and hygiene, etc.
2. Cooperation will take place through experts' meetings, seminars and workshops.
Article 64
1. In order to coordinate the social security regimes of Israeli workers legally employed on the
territory of a Member State and of their family members legally resident there, the following
provisions should apply, subject to the conditions and modalities applicable in each Member State:
- all periods of insurance, employment or residence fulfilled by such workers in the
different Member States shall be totalled for the purposes of the establishment of theright to old age, invalidity and survivors' pensions and allowances and for the
purposes of medical care for themselves and their families,
- all pensions and allowances for old age, survivors, accident at work, occupational
illness or invalidity, with the exception of non-contributory payments, shall benefitfrom free transfer to Israel at the rate appl icable resulting from the legislation of the
liable Member State(s),WT/REG110/1
Page 20
- the workers concerned shall receive family allowances for the members of their
family referred to above.
2. Israel shall grant to workers who are nationals of a Member State legally employed on its
territory and to their family members legally resident  there a treatment similar to that referred to in
paragraph 1, second and third indents, subject to the conditions and modalities applicable in Israel.
Article 65
1. The Association Council shall decide on the provisions for the implementation of the
objectives contained in Article 64.
2. The Association Council shall decide on the modalities of administrative cooperation to
guarantee the management and control necessary for the implementation of the provisions contained
in paragraph 1.
Article 66
The arrangements decided by the Association Council, in accordance with Article 65, shall in
no way affect the rights and obligations resulting from bilateral agreements between Israel and the
Member States where these agreements provide for a more favourable treatment of Israeli nationals or
for nationals of the Member States.
TITLE IX
Institutional, General and Final Provisions
Article 67
An Association Council is hereby established which shall meet at ministerial level once a year
and when circumstances require, at the initiative of its Chairman and in accordance with the
conditions laid down in its rules of procedure.  It  shall examine any major issues arising within the
framework of this Agreement and any other bilateral or international issues of mutual interest.
Article 68
1. The Association Council shall consist of the members of the Council of the European Union
and members of the Commission of the European Communities, on the one hand, and members of theGovernment of the State of Israel, on the other.
2. The Association Council shall establish its Rules of Procedure.3. Members of the Association Council may arrange to be represented in accordance with the
provisions laid down in its Rules of Procedure.
4. The Association Council shall be chaired in  turn by a member of the Council of the
European Union and a member of the Government of the State of Israel, in accordance with the
provisions laid down in its Rules of Procedure.WT/REG110/1
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Article 69
1. The Association Council shall, for the purpose of attaining the objectives of the Agreement,
have the power to take decisions in the cases provided for therein.  These decisions shall be binding
on the Parties which shall take the measures necessary to implement the decisions taken.  TheAssociation Council may also make appropriate recommendations.
2. The Association Council shall draw up its decisions and recommendations by agreement
between the Parties.
Article 70
1. Subject to the powers of the Association Council, an Association Committee is hereby
established which shall be responsible for the implementation of the Agreement.
2. The Association Council may delegate to the Association Committee, in full or in part, any of
its powers.
Article 71
1. The Association Committee, which shall meet at official level, shall consist of representatives
of the members of the Council of the European Union and of members of the Commission of the
European Communities, on the one hand, and of representatives of the Government of the State of
Israel, on the other.
2. The Association Committee shall establish its Rules of Procedure.
3. The Association Committee shall be chaired in turn by a representative of the Presidency of
the Council of the European Union and by a representative of the Government of the State of Israel.
Article 72
1. The Association Committee shall have the power to take decisions for the management of the
Agreement as well as in those areas in which the Association Council has delegated its powers to it.
These decisions shall be binding on the Parties which shall take the measures necessary to implement
the decisions taken.
2. The Association Committee shall draw up its decisions by agreement between the Parties.
Article 73
The Association Council may decide to set up any working group or body necessary for the
implementation of the Agreement.
Article 74
The Association Council shall take all appropr iate measures to facilitate cooperation and
contacts between the European Parliament and the Knesset of the State of Israel, and between the
Economic and Social Committee of the Community and the Economic and Social Council of Israel.WT/REG110/1
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Article 75
1. Each of the Parties may refer to the A ssociation Council any dispute relating to the
application or interpretation of this Agreement.
2. The Association Council may settle the dispute by means of a decision.
3. Each Party shall be bound to take the measures involved in carrying out the decision referred
to in paragraph 2.
4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either
Party may notify the other of the appointment of an arbitrator; the other Party must then appoint asecond arbitrator within two months.  For the application of this procedure, the Community and the
Member States shall be deemed to be one Party to the dispute.  The Association Council shall appoint
a third arbitrator.  The arbitrators' decisions shall be taken by majority vote.  Each party to the dispute
must take the steps required to implement the decision of the arbitrators.
Article 76
Nothing in the Agreement shall preven t a Party from taking any measures:
(a) which it considers necessary to prevent the disclosure of information contrary to its
essential security interests;
(b) which relate to the production of, or trade in, arms, munitions or war materials or to
research, development or production indispensable for defence purposes, provided
that such measures do not impair the conditions of competition in respect of productsnot intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
disturbances affecting the maintenance of law and order, in time of war or serious
international tension constituting threat of war or in order to carry out obligations it
has accepted for the purpose of maintaining peace and international security.
Article 77
In the fields covered by this Agreement, and without prejudice to any special provisions
contained therein:
- the arrangements applied by Israel in respect of the Community shall not give rise to
any discrimination between the Member States, their nationals, or their companies or
firms,
- the arrangements applied by the Community in respect of Israel shall not give rise to
discrimination between Israeli nationals or its companies or firms.
Article 78
As regards direct taxation, nothing in the Agreement shall have the effect of:- extending the fiscal advantages granted by either Party in any international agreement
or arrangement by which it is bound,WT/REG110/1
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- preventing the adoption or application by either Party of any measure aimed at
preventing the avoidance or the evasion of taxes,
- opposing the right of either Party to apply the relevant provisions of its tax legislation
to taxpayers whose position, as regards place of residence, is not identical.
Article 79
1 The Parties shall take any general or specific measures required to fulfil their obligations
under the Agreement.  They shall see to it that the objectives set out in the Agreement are attained.
2. If either Party considers that the other Party has failed to fulfil an obligation under the
Agreement, it may take appropriate measures.  Before so doing, except in cases of special urgency, it
shall supply the Association Council with all relevant information required for a thorough
examination of the situation with a view to seeking a solution acceptable to the Parties.  In the
selection of measures, priority shall be given to those which least disturb the functioning of the
Agreement.  These measures shall be notified immediately to the Association Council and shall be thesubject of consultations within the Association Council if the other Party so requests.
Article 80
Protocols 1 to 5, Annexes I to VII shall form an integral part of this Agreement.  Declarations
and Exchanges of Letters shall appear in the Final Act, which shall form an integral part of this
Agreement.
Article 81
For the purpose of this Agreement the term "Parties" shall mean the Community, or the
Member States, or the Community and the Member States, in accordance with their respective
powers, of the one part, and Israel of the other part.
Article 82
The Agreement is concluded for an unlimited period.  Each of the Parties may denounce the
Agreement by notifying the other Party.  The Agreement shall cease to apply six months after the date
of such notification.
Article 83
This Agreement shall apply, on the one hand, to the territories in which the Treaties
establishing the European Community and the European Coal And Steel Community are applied and
under the conditions laid down in those Treaties and, on the other hand, to the territory of the State of
Israel.
Article 84
This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French,
German, Greek, Italian, Portuguese, Spanish, Swedish and Hebrew languages; each of these texts
being equally authentic, shall be deposited with the General Secretariat of the Council of theEuropean Union.WT/REG110/1
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Article 85
This Agreement shall be approved by the Parties in accordance with their own procedures.This Agreement shall enter into force on the fi rst day of the second month following the date
on which the Parties notify each other that the procedures referred to in the first paragraph have been
completed.
Upon its entry into force this Agreement sha ll replace the Agreement between the European
Community and the State of Israel, and the Agreement between the Member States of the European
Coal and Steel Community, of the one part, and th e State of Israel, of the other part, signed in
Brussels on 11 May 1975.
Done  at Brussels on the twentieth day of November in the year one thousand, nine hundred
and ninety-five.
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