Israel, South Korea announce free-trade deal

Israel and South Korea announced yesterday they have concluded a free-trade agreement to eliminate tariffs on goods ranging from cars and medical equipment to lipstick and video games. Israeli Economy Minister Eli Cohen called the deal “historic”, saying it was Israel’s first such agreement with an east Asian nation.

It was not clear when the agreement could enter into force. “The advantage of this agreement will go beyond our economic ties,” Cohen said at a ceremony to announce the deal. “I’m confident that this will also mark the start of a new era and an even closer friendship between Israel and Korea.”

South Korean Trade Minister Yoo Myung-hee said at the ceremony that “I hope that Israeli companies will take full advantage of Korea as a stepping stone into the vast Asian market.” Negotiations on the agreement stretched three years. According to Israel’s economy ministry, trade between the two countries reached $2.5 billion last year, an increase of nearly 15 percent over 2017.