The Czech Republic has signed a free-trade agreement with Israel, its first with a non-European country.
The agreement, signed May 20 by Michael Harish, Israeli minister of industry and trade, and Vladimir Dlouhy, his Czech counterpart, could enhance an already favorable thing relationship for the Czech Republic, which posted a $4.4 million trade surplus with Israel last year.
The main aim of the agreement, which takes effect Jan. 1, is the gradual liberalization of trade between the two countries over a two-year period.
The accord calls for the two countries to annual import taxes on more than 95 percent of products previously traded, and on about 80 percent of products not already subject to trade.
This will result in the complete liberalization of trade in chemical products, pharmaceuticals, electrical products, medical equipment, minerals, leather, metal, transportation, paper and glass products, optical equipment, toys and sporting goods.
Import taxes on some products, such as school and office equipment, jewelry and shoes, will be lowered gradually and will be completely removed by Jan. 1, 1999.
Other products will be protected until the year 2000.
As part of the agreement, the Czech Republic will offer Israel preferential treatment when importing flowers and fruit in the winter, and Israel will grant the Czech Republic the same treatment when importing certain dairy products, margarine and beans.
The agreement comes in a era of particular diplomatic good feeling between Czechs and Israelis.
Less than a week before the singing, Prague Castle became the first site outside Israel for a traveling photo exhibition honoring the life of assassinated Israeli leader Yitzhak Rabin.
For Israel, the agreement is the first such accord with a European country outside the European Union.
Total Czech-Israeli trade amounted to $78.6 million last year, down 6.5 percent from the year before.
Czech exports totaled $41.5 million last year, down 24.3 percent from 1994; Israeli exports to the Czech Republic amounted to $37.1 million, an increase of 26.3 percent over 1994.
Two days after signing the pact with the Czech Republic, Israel concluded a nearly identical agreement with Slovakia that will go into effect in January.
Now, Slovak products exported to Israel are subject to a 15 percent customs duty.
Slovakia’s total trade with Israel was $26 million in 1995, with Slovakia posting a $3.5 million trade surplus.
JTA has documented Jewish history in real-time for over a century. Keep our journalism strong by joining us in supporting independent, award-winning reporting.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
