Korea - Israel Free Trade Agreement
The Korea - Israel Free Trade Agreement provides for the elimination of border tariffs on most energy sector products, including:
- Electric generation equipment
- Mechanical equipment including pumps, appliances, and other advanced machinery
- Electric motors, transformers, batteries, and capacitors
- Motor vehicles
- Mineral ore and processed products including graphite, manganese, copper, aluminium, and nickel
- Various products manufactured using above minerals and metals such as sheets, powders, bars, and plates
- Photovoltaic cells
The Agreement also includes rules of origin which state the following conditions for products to benefit from preferential tariff treatment:
- wholly produced or obtained in the country (applicable largely to minerals, raw materials, and waste and scrap materials) or
- having undergone manufacturing processes that warrant a change in the HS code or
- meeting regional value content requirements.
The Investment provisions of the Agreement forbids pre-condition to foreign investment tied to export quotas, domestic content requirements, technology transfer obligations, and other non-tariff barriers. The Agreement also carries national treatment and most-favoured nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or those from any other nations.
The Agreement however also does not prevent either Party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.
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