Israel ratifies free trade agreement with South Korea

Hyundai Pallisade Credit: PR
Hyundai Pallisade Credit: PR

Israel is also negotiating free trade agreements with China and Vietnam.

Israel is accelerating efforts to sign free trade agreements with East Asian economic powers and Israel's vehicle market is likely to benefit from this over the coming months.

Sources close to the matter have informed "Globes" that the free trade agreement between Israel and South Korea, which was formally signed last year, has been formally ratified by Israel over the past few weeks - a major step which brings implementation of the free trade agreement closer. The agreement now needs to be formally ratified by the Korean parliament, which according to the Korean media, should happen in the coming few weeks with the full support of all parties across the political spectrum.

The Israel Foreign Trade Administration at the Ministry of Economy and Industry expects the 7% excise tax on all Korea cars imported into Israel to be canceled when the agreement comes into effect. But sources in Israel's car industry are trying to temper expectations and insist that cancellation of the excise tax will only help moderate the sharp price rises being dictated by manufacturers due to increased production costs, and won't be reflected in an actual fall in current prices.

At the same time, Israel is also expected to sign a free trade agreement with Vietnam later this year. Earlier this week an Israeli importer signed an agreement to import Vietnam's Vinfast electric vehicles from the fourth quarter and the free trade agreement will also reduce the prices of these cars, which includes 7% excise tax. The Foreign Trade Administration said, "Talks to prepare a free trade agreement with Vietnam are in advanced stages. The sides hope to complete the negotiations during 2022. The Foreign Trade Administration stresses that the agreement will require ratification by both countries before coming into effect."

The third free trade agreement being negotiated with an East Asia country is the biggest of all - China, which is also a major player in the car market. Last month Chinese TV station CGTN reported that Israel and China had agreed to speed up negotiations on the free trade agreement in a phone conversation between Israel's Foreign Minister Yair Lapid and his Chinese counterpart Wang Yi.

Published by Globes, Israel business news - en.globes.co.il - on April 27, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Hyundai Pallisade Credit: PR
Hyundai Pallisade Credit: PR
Elon Musk credit: Shutterstock Elon Musk's SpaceX set to launch Israel's Dror satellite

The Dror satellite will serve Israel's communications needs for the next 15 years.

Maurice Ferre illustration Gil Gibli Insightec wins new FDA approval for Parkinson's treatment

The company's revenue is growing, but it is yet to post a profit. CEO Maurice Ferré: The market no longer tolerates losses.

Benny Landa  credit: Einat Levron Landa Digital Printing granted protection from creditors

The stay of proceedings is until the end of August. The company owes NIS 1.7 billion, mainly arising from investors' loans.

Beyond Towers Givatayim credit: Barely Levitzky Kassif architects Akamai in talks to lease 20,000-sq.m. in Givatayim tower

The US company wants to double the current size of its Tel Aviv office as part of its expansion in Israel.

Begin Highway cover Jerusalem credit: Dagan Visual Solutions Kolker Kolker Epstein Architects Jerusalem District C'ttee approves plan to cover Begin Highway

There will be intensive construction above the highway including some 2,000 housing units, 250 units for assisted living, 300 hotel rooms, 30,000 square meters office and commercial space, and 75,000 square meters for public use.

Shekel strengthening sharply credit: Tali Bogdanovsky with Adobe Firefly Shekel at strongest against dollar since April 2022

The record breaking stock market, falling risk premium, high interest rate, and geopolitical developments all support the continued strengthening of the shekel.

Intel fab construction credit: Intel Intel Kiryat Gat expansion frozen for foreseeable future

Amid Intel's financial woes, part of the $25 billion expansion in Israel has been halted while the other part, although completed, is not operational.

Nvidia Mevo Carmel development center credit: Assaf Gilead Mevo Carmel in pole position to house Nvidia Israel campus

Industry experts believe that the Mevo Carmel Science and Industry Park near Yokne'am is the favorite to persuade Nvidia to build its 180,000 square meter campus there.

Ben Gurion airport credit: Tali Bogdanovsky Foreign airlines returning to Israel faster than expected

United Airlines, Lufthansa Group, Wizz Air and Aegean will add dozens of new flights to Ben Gurion airport's departures and arrivals board over the summer and bring down fares.

New construction in Israel credit: Shutterstock Sharp fall in new home sales after restrictions imposed

The Bank of Israel's efforts to restrict developers financing offers saw housing sales record one of its weakest months in the past 25 years, the Finance Ministry reports.

Apple Vision Pro glasses credit: Apple Apple acquires Israeli 3D avatar co TrueMeeting

Apple will integrate TrueMeeting's technology into its Vision Pro smart glasses, which were launched last year.

Xiaomi SU7 credit: PR Israel to import Xiaomi cars

Xiaomi importer Hemilton has formed a joint partnership with the Hamizrahi vehicle importer to bring the Chinese electric vehicles to Israel.

Hermes 900 UAV credit: Elbit Systems Swiss mull cancelling $380m Elbit drone deal - report

"The technical problems with the surveillance drones are apparently so serious that they must be accompanied by a helicopter or another aircraft to avoid collisions," Swiss newspaper NZZ reports.

Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky BoI grants Tshuva permit to control Isracard

Yitzhak Tshuva's Delek Group will now buy 37% of the shares in credit card company Isracard, giving it a 40% stake.

Wizz Air  credit: Shutterstock/Peter Leczo Wizz Air to restart Tel Aviv flights in August

Wizz Air will gradually reintroduce Israel services, starting with flights from Tel Aviv to Larnaca and Budapest.

Zeekr 001  credit: Mobileye Intel selling 8% Mobileye stake

After the secondary offering, Intel will be left with an 80% holding in the Israeli advanced driving assistance systems company.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018