Israel, Mexico amended the Israel-Mexico Free-Trade Agreement of 2000
Port 2 Port | Oct 29, 2007
Israel, Mexico amended the Israel-Mexico Free-Trade Agreement of 2000
The newly signed amendment allows for goods originating in Israel or Mexico to undergo minimal processing or storage in a third country
Minister of Industry, Trade and Labor, Eli Yishai, and Mexican Minister of Economics, Eduardo Sojo Garza-Aldape, signed last week a memorandum confirming the final text of the Amendment to the Israel-Mexico Free-Trade Agreement of 2000.
The amendment was negotiated over a long period of time by the Mexican commercial attaché and the foreign trade division at the Minister of Industry, Trade and Labor.
Boaz Hirsch, foreign trade division director,said that the new amendment was a breakthrough in the bilateral agreement and was aimed at solving a problem faced by many companies that want to transit products made in either Israel or Mexico through a third country, such as the US or the EU.
Within the framework of the existing agreement, the transit of such goods via a third country, required redefining the country of origin of the goods and the payment of customs duties, because the free-trade agreement required direct shipment of goods between Israel and Mexico as a precondition for the customs exemption.
The newly signed amendment allows for goods originating in Israel or Mexico to undergo minimal processing or storage in a third country, before shipment to Israel or Mexico without this transit affecting the goods’ duty-free exemption, under the bilateral free-trade agreement.
The agreement will be formally approved and come into force in 2008.
