MercoPress. South Atlantic News Agency

Mercosur-Israel free trade agreement becomes effective

Mercosur administrative building in Montevideo

The free trade agreement between Mercosur and Israel, the first out of the region for the South American block, became effective this week for Paraguay. For the rest of Mercosur full members, Argentina, Brazil and Uruguay the official date is April first.

According to the Paraguayan Foreign Affairs Ministry, the agreement will help boost bilateral trade with Israel in a ten year period, through the concession of tariff preferences for a universe of approximately 8.000 products, mainly manufactured goods.

Of that total, 83% (approximately 6.674) products are immediately benefited from the tariff reduction. Paraguay’s share is of 527 export products with 80% effective this week.

However for Israeli produce the timetable is more gradual: immediate effect for 26% of items, 10% in four years, 36% in eight years and 38% in ten years.

The Mercosur-Israel agreement also contemplates animal and plant health measures, customs cooperation, safeguards and mechanisms to solve disputes, plus cooperation and technology transfer.

The free trade agreement with Israel was signed in Montevideo on 18 December 2007.