ABSTRACT

This chapter examines the expectations and objectives with which the United States and Israel entered into the Free Trade Area (FTA) negotiations. The United States and Israel each entered the FTA negotiations with several key economic objectives. Because of the small volume of its dutiable exports to the US, Israel believed that the FTA would not be beneficial if any product categories were excluded from tariff elimination. After being frustrated with the non-tariff negotiations, the Israeli negotiators were even more frustrated when both countries began exchanging tariff offers. In early August 1984, the United States surprised Israel by informally presenting Israeli negotiators with an offer list of items for immediate, five-year and ten-year tariff elimination, as well as a list of tariff concessions they wanted from Israel. The textile portion of the FTA negotiation was by far the most difficult to negotiate for several reasons. The textile sector is the most heavily protected industrial sector in the US.