Canada-Israel Free Trade Agreement

Part I - General Part

Chapter One - Objectives

Article 1.1: Establishment of the Free Trade Area

The Parties to this Agreement, consistent with Article XXIV of the General Agreement on Tariffs and Trade 1994, as specified in Annex 1A of the Agreement Establishing the World Trade Organization, hereby establish a free trade area.

Article 1.2: Objective

1. The objective of this Agreement, as elaborated more specifically in its provisions, is to eliminate barriers to trade in, and facilitate the movement of, goods between the territories of the Parties, and thereby to promote conditions of fair competition and increase substantially investment opportunities in the free trade area.

2. The Parties shall interpret and apply the provisions of this Agreement in the light of its objective set out in paragraph 1 and in accordance with applicable rules of international law.

3. Each Party shall administer in a consistent, impartial and reasonable manner all laws, regulations, decisions and rulings affecting matters covered by this Agreement.

Article 1.3: Relation to Other Agreements

1. The Parties affirm their existing rights and obligations with respect to each other under the Agreement Establishing the World Trade Organization, (hereinafter referred to as the WTO Agreement), including the General Agreement on Tariffs and Trade 1994, (hereinafter referred to as GATT 1994), and its successor agreements and other agreements to which both Parties are party.

2. In the event of any inconsistency between this Agreement and such other agreements, this Agreement shall prevail to the extent of the inconsistency, except as otherwise provided in this Agreement.

Article 1.4: Definitions of General Application

1. For the purposes of this Agreement, unless otherwise specified:

• enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture or other association;
• good of a Party means a domestic good as this is understood in the GATT 1994 or such a good as the Parties may agree, and includes an originating good of that Party;
• Harmonized System means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;
• originating good or material means a good or material that qualifies as originating under Chapter Three;
• person means a natural person or an enterprise; and
• territory means:

(a) with respect to Canada the territory to which its customs laws apply, including any areas beyond the territorial seas of Canada within which, in accordance with international law and its domestic law, Canada may exercise rights with respect to the seabed and subsoil and their natural resources;

(b) with respect to Israel the territory where its customs laws are applied;

2. The rights and obligations of the Parties relating to the observance of this Agreement by regional and local governments shall be governed by Article XXIV:12 of the GATT 1994.