free trade area accord waw signed between South Korea and Israel

Economy and Industry Minister Amir Peretz signed an agreement with his South Korean counterpart, the Minister for Trade, Ms Yoo Myung-Hee, on the establishment of a free trade area between the two countries. During his visit, Economy Minister also met with Korean Economy Minister Moon Sung-Wook.
With the signing of the agreement, South Korea, the 11th largest economy in the world, becomes the first country in Asia with which a free trade agreement has been signed.
With the entry into force of the agreement, in a few months, there will be reciprocal tariff reductions on most products, imported and exported, along with improved and facilitated trade in a variety of other areas such as services, investments, and standards. On the export side, the agreement is expected to give Israeli industry a competitive advantage and facilitate the activity of businessmen in the Korean market - thus strengthening Israeli exports and increasing economic growth, and on the import side, the agreement will help reduce the cost of living in Israel by lowering South Korean imports to Israel.
Exports of goods and services from Israel to South Korea in 2020 amounted to about $ 890 million. South Korea's imports of goods and services that year totaled more than $ 1.5 billion. The free trade agreement is expected to increase the volume of trade between the countries even more and encourage trade in new areas. According to estimates of the benefit to exporters and the expected savings for importers and consumers under the trade agreement, it is estimated at half a billion NIS per year. In addition, the total volume of trade between the parties, following the agreement, is expected to increase by hundreds of millions of dollars in the first years of its signing.
The agreement between Israel and Korea will help to equalize Israel's terms of trade with these countries. Upon completion of the ratification process of this agreement on both sides, Israeli companies will enjoy equal terms of trade and competition in the Korean market. After signing the agreement will go through a ratification process - according to the laws and procedures in Israel and Korea and after exchanging official announcements between the parties on the termination of the ratification process, the agreement will enter into force.
During the visit, an agreement was also signed to renew and double the KORIL-RDF R&D Fund, managed and led by the Israel Innovation Authority - which supports innovative research and development carried out in collaboration between commercial companies from Israel and Korea.
Foreign Minister Gabi Ashkenazi added: "The signing of the joint trade agreement brings to an end Israel's hard work, politically and economically, to promote the free trade agreement, which will strengthen Israel's economy and reduce the cost of living in Israel. South Korea is one of the largest and most influential trade friends. "Strengthening the Israeli economy and implementing the agreement is important for both countries."
Key benefits of the free trade agreement:
* Over 95% of Israeli exports to Korea will be duty free. Among other things, the caps on electrical machinery and equipment, machinery and mechanical devices, fertilizers, medical equipment, cosmetics, plastics and its products, metals, as well as fruit and wine juices (examples below).
* On the other hand, tariffs on products imported from South Korea to Israel have fallen: cars and their parts, refrigerators, medical equipment, electronic components, toys and games, plastics and its products and chemicals (examples below).
* The agreement encourages investments by Korean companies in Israel and Israeli companies in Korea through an investment promotion and protection chapter. The chapter contains protections against the risks involved in Israeli investments in South Korea and of Korean companies in Israel.
* The agreement promotes the trade in services between the countries by ensuring regulatory certainty as well as providing specific protection in areas such as e-commerce, telecom and labor movement. 
עוד מידע על טקסט המקור הזהטקסט המקור נדרש לצורך מידע נוסף על התרגום