EU-Israel Association Agreement

What is the EU-Israel Association Agreement?

The EU-Israel Association Agreement forms the legal basis governing relations between Israel and the EU.

The treaty with Israel incorporates free trade arrangements for industrial goods, concessionary arrangements for trade in agricultural products (a new agreement here entered into force in 2003), and opens up the prospect for greater liberalisation of trade in services, and farm goods, from 2005.  The Association Agreement was signed in Brussels, on 20 November 1995, and entered into force on 1 June 2000, following ratification by the 15 Member States parliaments, the European Parliament and the Knesset.

In line with the new generation of Association Agreements between the EU and its Mediterranean partners, the preamble emphasises the importance of the principles of the United Nations Charter, in particular the observance of human rights, democratic principles and economic freedom.  Respect for human rights and democratic principles constitutes an essential element of the Agreement.

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More information

Full text of Agreement

Latest Meetings

The fifth meeting of the EU-Israel Association Council was held in Brussels on 13 December 2004, under the chair of the Netherlands Presidency (Foreign Minister Bot), with Israel’s Foreign Minister Shalom, EU High Representative Solana, and External Relations Commissioner Ferrero-Waldner.  The European Neighbourhood Policy Action Plan was endorsed by the two sides, and both parties issued a Declaration summarising its perspectives on the EU-Israel relationship  The Association Council focused on the Middle East Peace Process and the holding of Presidential elections in the Palestinian Territories (following the death of Arafat), the role of the EU electoral observer mission, the importance of the Quartet Road Map as the reference for returning to peace negotiations, the Knesset endorsement of disengagement from Gaza and parts of the West Bank.  Iran, Iraq, regional security and weapons issues were also discussed.  Israel raised its concerns over anti-Semitism in Europe, and the situation in Lebanon and Syria.

The Council meeting was followed by a convening of the Association Committee of senior officials in Jerusalem in April 2005, with its main task outlining steps and priorities for the implementation of the newly agreed Action Plan.  Agreement was reached on establishing ten sub-committees to deal with the technical aspects of Action Plan commitments.  These are expected to be formally adopted in August/September 2005, with the first round of meetings anticipated for September.  The sub-committees are: internal market; industry, trade and services; research, innovation, information society, education and culture; political dialogue and co-operation; economic and financial matters; transport, energy, and environment; justice and legal matters; social and migration issues; customs co-operation and taxation; agriculture and fisheries. 

The Association Committee discussed the Middle East Peace Process, anti-Semitism, human rights and minority issues in Israel and the occupied Palestinian territories, Israeli accession to international organisations, counter-terrorism, the Euro-Mediterranean Partnership, trade and services liberalisation, facilitation of Palestinian trade, regional cumulation of rules of origin, and a number of specific trade points.

EU-Israel Trade

Trade between the EU and Israel is conducted on the basis of the Association Agreement.  It has flourished in the last decade.  The EU is Israel's major trading partner, about 40% of Israeli imports come from the EU, and about 30% of Israeli exports are directed to the EU. It occupies rank number 1 in Israel's imports and rank number 2 in its exports.  Israel is the EU's 21st largest export market, and ranks 28th in source for EU imports.

Total EU (25 Member States) trade with Israel fell in 2003 to €19.4 billion, compared to €24.9 billion in 2002.  EU exports to Israel reached €11.5 billion in 2003, while imports from Israel were €7.9 billion.  The trade deficit with Israel has hovered between €4 and €5 billion in the EU’s favour since 1999.

Israel’s main export categories to the EU25 are machinery (€1.8 billion in 2003), chemical products (€1.5 billion), agricultural products (€0.9 billion) and textiles and clothing (€0.3 billion).