Concluding remarks by the Chairperson

1. This fourth Trade Policy Review of Israel has given us a better understanding of Israel’s trade policies and practices and how they have evolved since 2006. I wish to thank Deputy Director-General Mr. Ohad Cohen, H.E. Mr. Eviatar Manor  and the other members of Israel’s delegation for their open and cooperative attitude. I would also like to thank the discussant, H.E. Mr. Fook Seng KWOK for his very insightful contribution to these deliberations. 

2. Members commended Israel for its impressive economic performance and quick recovery from the global economic crisis, thanks to sound economic fundamentals and prudent regulation of its financial markets.  

3. Members praised Israel for its strong commitment to the multilateral trading system and its constructive efforts towards concluding the DDA negotiations. Some Members highlighted Israel’s active participation in the revision of the Agreement on Government Procurement, and its support for services trade liberalization in the WTO and updating of the ITA agreement.  Members welcomed Israel’s recent unilateral trade liberalization initiatives.  In this regard, MFN tariffs on a range of consumer products were eliminated in 2012, and further tariff reductions or eliminations on textiles, apparel and certain agricultural or food items are to be implemented in the coming years. Several Members noted Israel’s progress in aligning its technical requirements with international norms. The planned tax reform for alcoholic beverages was also welcomed.

4. Several delegations noted that Israel has a number of outstanding notification obligations and that there is room for improvement of providing up-to-date notifications, in order to improve the transparency of its trade regime. We have taken note of Israel’s commitment to improve its track record.

5. The observations made and the questions posed by delegations during this Review, indicated that the following issues would merit further attention and reflection by the Israeli authorities, while we have taken note of the detailed comments by Israel this morning:

• Agriculture:  Members took a keen interest in Israel’s agricultural policies.  Concern was expressed about the high level of tariff protection in agriculture, particularly dairy products. Israel was encouraged to examine the scope for market-oriented reforms in agriculture and further opening its markets to imports of agricultural and food products. Israel was also invited to review its complex agricultural tariff and tariff quota system and consider converting mixed and compound duties into ad valorem duties, to improve the transparency of its agricultural trade regime.

• Market access: There is a considerable gap between Israel’s bound and applied tariffs, which translates into a certain degree of unpredictability of the trade regime. Israel’s applied tariff being based on HS 2012 nomenclature, a number of Members urged Israel to quickly complete the transposition of its Schedule of Concessions from HS 1996 nomenclature. Concern was also raised over the complexity of Israel’s non-automatic import licensing procedures.

• Contingency trade remedies: Severaldelegations expressed concern regarding the nature and basis of the “safeguard levy” within the framework of the  Trade Levies and Safeguard Measures Law. Israel was also encouraged to complete investigations within 18 months.

• Incentives: A number of delegations called for greater clarity and transparency of Israel’s investment incentives.  Israel was also requested to review the rationale and basis of export-based eligibility criteria.

• Intellectual property: Members took note of the significant developments in the area of intellectual property. However, a number of questions and remaining concerns over intellectual property protection were raised, particularly regarding  patents, copyright, and enforcement.  

6. This successfully concludes our fourth Review of Israel.  The questions posed and the number of interventions show that Members have a strong interest in Israel’s experience in international trade.  As our discussant rightly noted, we hope that the feedback from this TPR will help Israel on its steady path of reform and liberalization in the midst of a very challenging environment.  We thank Israel for its responses to the advance questions and look forward to receiving its replies to the remaining questions within the next month.