You will lead a multi-sectorial Mission for Growth to Israel 21-23 October 2013. You will be accompanied by a business delegation of more than 65 companies and business federations ,
43 of them being small and medium enterprises (SMEs), from 17 EU Member States . The combined turnover of the companies joining this mission is of € 19 billion employing 390.000 persons .
The participating Associations represent more than 5 million companies with a combined turnover of more than 700 billion Euros.
During the Mission, you will meet President Shimon Peres , and four ministers :
– Mr. Naftali Bennett, Israel's Minister of Economy.
You got an official invitation from him to give a Keynote Speech at the WATEC Conference. In his invitation he also welcomed the Mission for Growth to Israel. Together with Mr. Bennett, you will sign 2 Letters of Intent :
•
Industrial Cooperation
•
SME cooperation
– Mr. Yaacov Perry, Minister of Science, Technology and Space.
At this meeting, you will sign an A dministrative Arrangement on cooperation in the domain of satellite navigation systems (GNSS).
– Mr. Uzi Landau, Minister of Tourism . You can discuss cooperation in the field of tourism and the implementation of the EU-Israeli Joint Declaration that you signed in the area of tourism in 2011.
– Mr. Silvan Shalom, Minister of Energy and Water Resources . You can exchange views on boosting green and sustainable growth both in Israel and in the EU.
You will also give a Keynote Speech at the WATEC Conference and Opening Remarks at the Business Roundtable.
The European Union and Israel share a long common history, marked by growing interdependence and cooperation. Both share the same values of democracy, a respect for freedom and rule of law and are committed to an open international economic system based
1

on market principles. Israeli political, industrial, commercial and scientific leaders maintain close links to Europe. Over five decades of trade, cultural exchanges, political cooperation and a developed system of agreements have cemented these relations.
However, in a situation on a non-upgrade since 2009, bilateral EU-IL relations are developed without a strategic vision and are focused on the implementation of the 2005 Action Plan.
Latest landmark successes include the ACAA agreement giving Israeli industries access to the EU market (in force since Jan. 2013) and the civil aviation agreement (signed on 10 June
2013). Israel gives high priority to its participation in the Horizon 2020 research and innovation programme, on which negotiations started on 14 August.
Following the first ISR/PAL talks in Washington DC on 29-30 July, the two parties resumed direct talks in Jerusalem on 14 August 2013 and continue to meet at regular intervals. US
Secretary of State (SoS) Kerry, supported by US envoy for MEPP Martin Indyk, is the only person entrusted to give public statements on the negotiations. But very few public comments have been made so far, a possible peace plan may be outlined round end of 2013. EU is fully supportive of these US-sponsored negotiations.
The EU's role in support of the various tracks was underlined by many. Strong Ministerialpredicament of the PAL economy ($350 million financing gap projected for this year) and the need for the economic track to accompany the political track in the peace process was underscored at that meeting. The AHLC welcomed the announcement by ISR ahead of its meeting of economic gestures to stimulate the PAL economy and called for both reform on the PAL side and further efforts by ISR to facilitate the movement of people and goods in the
West Bank and Gaza. (Further details: EEAS Briefing)
The EU-Israel economic relations are extensive, with strong economic and trade relations on the Association Agreement signed in 2000. Israel participates in the European Neighbourhood
2

Program.
The European Neighbourhood Program (ENP) offers the perspective of moving beyond cooperation to a significant degree of integration through a stake in the EU's Internal
Market and the possibility for Israel to participate progressively in key aspects of EU policies and programmes. Israel was among the first wave of countries to agree on an ENP Action
Plan with the EU.
The ENP Action Plan set out in more detail than the earlier EU-Israel Association Agreement a comprehensive set of jointly developed priorities with a programme of specific activities to which both sides are committed. The areas for greater cooperation under the Action Plan include : upgrading political cooperation; promoting peace in the Middle East; approximating
Israeli legislation to that of the EU as a way of opening the EU's Internal Market to Israel; pursuing greater liberalization of trade, services and agriculture; the fight against organized crime; cooperation in transport, energy and communications; closer links in science and technology and people-to-people contacts in education, culture and civil society.
During the implementation of the Action Plan several new agreements have been signed
(trade in agricultural products, standards conformity) while others (trade in services) are under negotiation.
The implementation of the Action Plan has created an ever closer web of relations. Ten joint sub-committees have been established that meet regularly, both in Brussels and in Jerusalem.
(The sub-committee meetings for discussing the 60 activities are on-going, the internal market, industry, trade and services sub-committee was held on 10 July 2013.)
Moreover, tools like TAIEX and Twinning have allowed European experts and their Israeli counterparts to share expertise and information across a wide range of fields with the aim of eventually bringing Israeli laws and regulations jointly identified by the EU and Israel in line with those of the EU.
Israel which was a signatory to the 1995 Barcelona Declaration is also a member of the Union for the Mediterranean.
Israel is an important trading partner for the EU in the Mediterranean area, and the EU is the first trading partner for Israel with total trade amounting to approximately €29.4 billion in
2011. The EU is Israel's major source of imports (34.5% of the import market) and the second largest market for exports (26.1% of the export market), behind United States.
3

EU exports of goods to Israel are dominated by machinery and transport equipment, chemicals, and other semi-manufactures.
The EU is Israel's major source of imports, accounting for more than 30% of the country's total imports. EU imports from Israel are dominated by chemicals, machinery and mechanical appliances, and precious and semiprecious stones.
Great successes in the EU-Israel economic relations in 2013: ACAA; Civil Aviation agreement.
The Agreement on Conformity Assessment and Acceptance of Industrial Products
(ACAA) with Israel entered into force on 19 January 2013 on pharmaceutical products .
This agreement had been held up in the European Parliament for years due to political reasons. An ACAA has the objective of promoting trade in goods between the European
Union and third countries by facilitating market access. It is a bilateral agreement, and aims to benefit industry by providing easier access to conformity assessment.
Civil Aviation agreement (signed on 10 June 2013). In the margins of the EU Transport
Council in Luxembourg the European Union and Israel signed the Euro Mediterranean
Aviation Agreement.
With this agreement, all EU airlines will be able to operate direct flights to Israel from anywhere in the EU and Israeli carriers will be able to operate flights to airports throughout the EU. The EU-Israel air transport market will be opened gradually over the next five years so that by 2018, the market will be fully open with no restrictions on the number of flights.
Foreign direct investment (FDI) inflows to Israel are increasing but the growth in FDI outflows has been much more important over the past years. FDI stocks have also increased over the past years.
Israel is currently ranked as the 26th most competitive economy in the world (out of 144 countries).
1
The country’s main strengths remain its world-class capacity for innovation, which rests on highly innovative businesses that benefit from the presence of the world’s best research institutions geared toward the needs of the business sector.
Israel’s excellent innovation capacity, which is supported by the government’s public procurement policies, is reflected in the country’s high number of patents. Its favourable financial environment, particularly evident in the ease of access to venture capital, has contributed to making Israel an innovation powerhouse.
1
The Global Competitiveness Report 2012-2013, WEF. By comparison, 10 EU Member States are ranked higher.
4

5

6

7

8

9

10