Canada-Israel Free Trade Agreement
CHAPTER FOUR
NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Section A – National Treatment
Article 4.1: National Treatment
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, which is incorporated into and made part of this Agreement.
2. Paragraph 1 does not apply to the measures set out in Annex 4.1.
Section B – Non-Tariff Measures
Article 4.2: Import and Export Restrictions
1. Except as otherwise provided in this Agreement, a Party shall not adopt or maintain any prohibition or restriction on the importation of any good of the other Party, or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994, which is incorporated into and made a part of this Agreement.
2. The Parties reaffirm that the GATT 1994 rights and obligations incorporated into and made part of this Agreement by paragraph 1 prohibit export price requirements in any circumstances in which any other form of restriction is prohibited and import price requirements except as permitted in enforcement of countervailing and antidumping orders and undertakings,.
3. If a Party adopts or maintains a prohibition or restriction on the importation from, or exportation to, a non-Party of a good, this Agreement does not prevent that Party from:
- (a) limiting or prohibiting the importation from the territory of the other Party of a good of that non-Party; or
- (b) requiring, as a condition of export of a good of that Party to the territory of the other Party, that the good not be re-exported to the non-Party, directly or indirectly, without being consumed in the territory of the other Party.
4. If a Party adopts or maintains a prohibition or restriction on the importation of a good from a non-Party, on request of the other Party, the Parties shall consult with a view to avoiding undue interference with, or distortion of, pricing, marketing, and distribution arrangements in the other Party.
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 4.1.
Article 4.3: Customs User Fees and Similar Charges
1. A Party shall not adopt or maintain a fee or charge on, or in connection with, the importation of a good of the other Party, except in accordance with Article VIII of the GATT 1994, which is incorporated into this Agreement.
2. Paragraph 1 does not prevent a Party from imposing a customs duty or a charge set out in subparagraphs (a) or (b) of the definition of “customs duty” in Article 2.4 (Definitions).
Article 4.4: Distilled Spirits
A Party shall not adopt or maintain a measure requiring that distilled spirits imported from the territory of the other Party for bottling be blended with distilled spirits of the Party.
Article 4.5: Customs Valuation
The Customs Valuation Agreement governs the customs valuation rules applied by the Parties to their bilateral trade.
Article 4.6: Global Emergency Actions
1. The Parties retain their rights and obligations under Article XIX of the GATT 1994 or any safeguard agreement pursuant thereto, except those regarding compensation or retaliation and exclusion from an emergency action to the extent that these rights or obligations are inconsistent with this Article. A Party taking emergency action under Article XIX of the GATT 1994 or any safeguard agreement pursuant thereto shall exclude from the action imports of a good from the other Party unless:
- (a) imports from the other Party account for a substantial share of total imports; and
- (b) imports from the other Party, contribute importantly to the serious injury, or threat thereof, caused by imports.
2. In determining whether:
- (a) imports from the other Party account for a substantial share of total imports, those imports normally shall not be considered to account for a substantial share of total imports if the other Party is not among the top five suppliers of the good subject to the proceeding, measured in terms of import share during the most recent three-year period; and
- (b) imports from the other Party contribute importantly to the serious injury, or threat thereof, the competent investigating authority shall consider such factors as the change in the import share of the other Party, and the level and change in the level of imports from the other Party. In this regard, imports from the other Party normally shall not be deemed to contribute importantly to a serious injury or threat thereof, if the growth rate of imports from the other Party during the period in which the injurious surge in imports occurred is appreciably lower than the growth rate of total imports from all sources over the same period.
3. A Party taking an emergency action excluding a good from the other Party pursuant to paragraph 1, shall have the right to include that good subsequently in that action in the event that the competent investigating authority determines that a surge in imports of that good from the other Party undermines the effectiveness of the action.
4. A Party shall, without delay, deliver to the other Party a written notice of the institution of a proceeding that may result in an emergency action pursuant to paragraph 1 or 3.
5. A Party shall not impose restrictions on a good in an emergency action pursuant to paragraph 1 or 3:
- (a) without delivery of prior written notice to the Commission, and without adequate opportunity for consultation with the other Party against whose good the action is proposed to be taken, as far in advance of taking the action as practicable; and
- (b) that would have the effect of reducing imports of the good from the other Party below the trend of imports of the good from that other Party over a recent representative base period with allowance for reasonable growth.
6. A Party taking an emergency action pursuant to paragraph 1 or 3 may provide to the Party against whose good the action is taken a mutually agreed trade liberalising compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take action having trade effects substantially equivalent to the action taken pursuant to paragraph 1 or 3.
Article 4.7: Export Taxes
1. A Party shall not adopt or maintain a duty, tax or other charge on the export of any good to the territory of the other Party, unless the duty, tax or other charge is adopted or maintained on the good when destined for domestic consumption.
2. Paragraph 1 does not apply to the measures set out in Annex 4.1.
Section C – Committee on Trade in Goods
Article 4.8: Committee on Trade in Goods
1. The Parties hereby establish a Committee on Trade in Goods (“Committee”) composed of relevant representatives of each Party.
2. The Committee shall meet at the request of a Party or the Commission to consider any matter arising under this Chapter, Chapter Two (Tariff Elimination and Related Matters), and any matter referred to the Committee pursuant to paragraph 4 of Article 8.8 (Contact Points and Committee on Trade in Goods) of Chapter Eight (Technical Barriers to Trade) or Article 7.8 (Oversight Body) of Chapter Seven (Sanitary and Phytosanitary Measures).
3. The Committee’s functions shall includeFootnote 1:
- (a) promoting trade in goods between the Parties, including through consultations on accelerating tariff elimination under this Agreement and other issues as appropriate;
- (b) promptly addressing matters that affect trade in goods between the Parties, including those related to the application of non-tariff measures, and referring such matters to the Commission for its consideration;
- (c) recommending to the Commission a modification of or addition to the Chapters referred to in paragraph 2, or any other provision of this Agreement related to the Harmonized System; and
- (d) considering any other matter referred to it by a Party relating to the implementation and administration by the Parties of any provision set out in the Chapters referred to in paragraph 2.
4. The Parties hereby establish a Sub-Committee on Trade in Agricultural Goods composed of relevant representatives of each Party that:
- (a) shall meet at the request of a Party as soon as possible for perishable goods and within 90 days for other agricultural goods;
- (b) shall provide a forum for the Parties to discuss issues covered by this Agreement related to agricultural goods covered by this AgreementFootnote 2;
- (c) shall refer to the Committee any matter under sub-paragraph (b) on which it has been unable to reach agreement; and
- (d) shall report to the Committee for its consideration any agreement reached under this paragraph.
For the purposes of this paragraph, “agricultural good” means a product listed in Annex 1 of the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement.
5. At the request of a Party, the Parties shall convene a meeting of their relevant officials to address issues related to the movement of goods through a Party’s ports of entry.
6. The Parties may decide to hold any of the meetings referred to in this Article in person or by using any means available.
ANNEX 4.1
EXCEPTIONS TO ARTICLES 4.1 (NATIONAL TREATMENT),
4.2 (IMPORT AND EXPORT RESTRICTIONS) AND 4.7 (EXPORT TAXES)
Section A – Canadian Measures
Articles 4.1 (National Treatment), 4.2 (Import and Export Restrictions) and 4.7 (Export Taxes) do not apply to:
- (a) a measure, including that measure’s continuation, prompt renewal or amendment, in respect of the following:
- (i) the export of logs of all species,
- (ii) the export of unprocessed fish pursuant to applicable provincial legislation,
- (iii) the importation of goods of the prohibited provisions of tariff lines 9897.00.00, 9898.00.00 and 9899.00.00 referred to in the Schedule of the Customs Tariff (S.C. 1997, c. 36), as amended,
- (iv) Canadian excise duties on absolute alcohol, as listed under tariff item 2207.10.90 in Canada’s Schedule of Concessions annexed to the Marrakesh Protocol to the GATT 1994 (Schedule V), used in manufacturing under the provisions of the Excise Act, 2001, 2002, c. 22, as amended,
- (v) the use of ships in the coasting trade of Canada, or
- (vi) the internal sale and distribution of wine and distilled spirits; and
- (b) an action authorised by the Dispute Settlement Body of the WTO in a dispute between the Parties under the WTO Agreement.
Section B - Israeli Measures
Articles 4.1 (National Treatment), 4.2 (Import and Export Restrictions) and 4.7 (Export Taxes) do not apply to:
- (a) a measure, including that measure’s continuation, prompt renewal or amendment, in respect of the following:
- (i) controls and charges maintained by Israel on the export of metal waste and scrap; or
- (ii) subject to Israeli law, imports of non-kosher meat; and
- (b) an action authorized by the Dispute Settlement Body of the WTO in a dispute between the Parties under the WTO Agreement.
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