Israel, South Korea Sign Trade Deal

Israel and South Korea signed a trade deal that will ease customs duties for both sides, Israel’s Ministry of Foreign Affairs said in an Aug. 21 press release.

The deal, which Israel called its first with an Asian country, will exempt “most Israeli exports” from South Korean customs duties and will lower Israeli customs duties on South Korean goods. Israel said its duty-free exports will include “machinery and electrical equipment, mechanical devices, fertilizer, medical equipment, cosmetics, plastics, metals, fruit juices and wine,” while South Korea will see preferential treatment for its exports of “automobiles and automobile parts, refrigerators, medical equipment, electronic components, toys and games, plastics and chemicals.” The agreement will eliminate duties on more than 95 percent of Israeli exports to South Korea, according to Reuters.

The deal will allow Israeli companies to “benefit from equal trade terms and competition in the South Korean market,” the ministry said.

Israel’s Minister of Economy and Industry said the agreement will “assist in increasing exports, lowering the cost of raw materials, which increases the competitiveness of Israeli exporters and constitute welcome news for Israeli consumers in light of the entry of a broad range of products without customs duties."