The QIZ Agreements Economic Transformation and Social Change

The QIZ Agreements “Economic Transformation and Social Change in the Middle East” Academy of the Konrad-Adenauer-Stiftung 05. 12. 2007 Gabby Bar Foreign Trade Administration Ministry of Industry, Trade and Labor

Israel-U. S. FTA – Rules of Origin The Final Product Must Undergo a Substantial Transformation

What is QIZ? • A QIZ is an area in Jordan/Egypt and Israel, that was designated by the United States, from which goods can be exported duty free and quota free to the United States. • In order to enter the US duty free and quota free, these goods must meet the QIZ Agreement criteria and must be approved by the QIZ Committee.

The Agreements Protocols Between the Government of the State of Israel and the Government of the Hashemite Kingdom of Jordan/ The Arab Republic of Egypt - on Qualifying Industrial Zones • The Agreement with Jordan was Signed on October 1997, In Doha, and is Effective since 1998 • The Agreement with Egypt was signed on December 2004, in Egypt, and is effective since February 2005

Core of the Agreements Application of the U. S – Israel Free Trade Agreement on Finished Products that: • Are manufactured in specific industrial zones in Jordan/Egypt • Include components produced in Israel – At least 8%/11. 7% • Are destined for export to the U. S

Economic Goals of QIZ Agreements • For Israel: To “open” new markets for Israeli export • For Jordan/Egypt: To improve competitiveness of Their exports to the U. S • For the U. S: To diversify the sources of imports into the U. S • Joint objective: to enhance business and industrial cooperation and to increase bilateral trade between Jordan and Israel and Egypt and Israel

Israeli-Jordanian Trade 2000 -2006* * Israeli Bureau of Statistics

Jordanian Export to the U. S. – 1998 -2006* * U. S. Census Bureau

Israeli-Egyptian Trade 2000 -2006* * Israeli Bureau of Statistics

Egyptian Export to the U. S. – 1998 -2006* * U. S. Census Bureau