EU export marking arrangement in force

The agreement signed last year between Minister of Industry Trade and Labor Ehud Olmert and EU Trade Commissioner Pascal Lamy for the marking the origin of exports on Israeli made goods exported to the EU, came into effect last week
 
Under the agreement all goods must bear clear indication whether goods were produced within Israel or in the territories. The agreement between Israel and the EU ended a five-year dispute, during which customs authorities in EU member states imposed quotas and deposits on Israeli exports originating both from Israel and from the territories.
 
Minister of Industry Trade and Labor Ehud Olmert said last week that the purpose of the origin marking agreement was to enable Israeli exports free entrance into Europe and to improve the overall climate between the EU and Israel.
 
Within the framework of the improved climate conditions between the parties, the EU had undertaken to include Israel in the Pan-European accumulation system, involving the EU, EFTA countries, the countries of Eastern Europe, and Turkey.
 
The inclusion of Israel in the Pan-European accumulation system, means that Israeli enterprises, especially textiles, would be able to jointly manufacture goods in Israel and in factories in Eastern Europe, and still be exempt from customs duties upon entry to EU member states.
 
Olmert emphasized that the state would compensate Israeli exporters of goods from the territories for customs duties imposed by EU members on these goods. According to Olmert the EU customs duties are estimated at around US$7-8 million, on US$120 million worth of exports a year.
 
Olmert added that Israel's total exports to EU members were US$7.2 billion in 2003 and over US$10 billion in 2004