The mutual dismantling of trade barriers is expected to increase trade between Israel and South Korea. According to the local Ministry of Economy, Israel is also negotiating a similar agreement with Vietnam, China and India.
A free trade agreement between Israel and South Korea is due to be signed this week. With reference to the Israeli Ministry of Commerce, Reuters reported. For Israel, this will be the very first agreement of this type with any of the Asian countries.
The agreement aims to significantly increase the volume of mutual trade by removing their barriers in the form of customs tariffs. It also includes a clause on the promotion of mutual investment between the two countries.
Total trade turnover between South Korea and Israel reached about $ 2.4 billion in 2020. About two-thirds came from imports of goods and services into Israel, the Israeli Ministry of Economy said. More than 95 percent of the volume of goods and services should start trading without duties. Israel is also seeking a similar agreement with other Asian countries, such as China, Vietnam and India.