Israel ratifies free trade agreement with South Korea

• Author: Dubi Ben-Gedalyahu
• Published date: 27 April 2022
• Publication title: Globes (Rishon LeZion, Israel)

Sources close to the matter have informed "Globes" that the free trade agreement between Israel and South Korea, which was formally signed last year, has been formally ratified by Israel over the past few weeks - a major step which brings implementation of the free trade agreement closer. The agreement now needs to be formally ratified by the Korean parliament, which according to the Korean media, should happen in the coming few weeks with the full support of all parties across the political spectrum

The Israel Foreign Trade Administration at the Ministry of Economy and Industry expects the 7% excise tax on all Korea cars imported into Israel to be canceled when the agreement comes into effect. But sources in Israel's car industry are trying to temper expectations and insist that cancellation of the excise tax will only help moderate the sharp price rises being dictated by manufacturers due to increased production costs, and won't be reflected in an actual fall in current prices.

At the same time, Israel is also expected to sign a free trade agreement with Vietnam later this year. Earlier this week an Israeli importer signed an agreement to import Vietnam's Vinfast electric vehicles...