A Free Trade Area Agreement in Services between Israel and the EU – It's About Time!

תקציר

Israel and the EU are old trade partners. Despite of the fact that their trade relations date back some fifty years ago, the Association Agreement governing the preferential trade arrangements between them covers only trade in goods. Trade in services, amounting for 70% of their GDP, respectively, is not covered by this agreement. The main argument of this article is that the conclusion of a free trade area agreement in services between Israel and the EU is inevitable for the enhancement of their trade relations, as well as of the integration of their economies. It further suggests that both parties could use this agreement as an economic leverage of particular importance at this time of international economic crisis. The article presents the policy and practical difficulties and dilemmas standing in the way for achieving this goal, and concludes that the parties should invest the efforts necessary to overcome these difficulties in order to be able to exhaust the substantial benefits offered by such an agreement.