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Europe Daily Bulletin No. 7975
Contents Publication in full By article 13 / 35
GENERAL NEWS / (eu) eu/israel

Israeli Ministers for Trade discusses with Commission case of rules of origin (which has also been tackled by Customs Committee)

Brussels, 31/05/2001 (Agence Europe) - On the sidelines of the Euro-Mediterranean meeting that unfolded on Tuesday in Brussels (see yesterday's EUROPE, p.11), the Minister for Trade and Industry for the State of Israel, Dalia Itsik had bilateral meetings with the European Commissioner responsible for external relations Chris Patten, than with his Community counterpart Pascal Lamy. The first meeting, qualified as "highly political" by the Europeans, also covered the problem of rules of origin linked to imports at a preferential rate of agricultural and industrial products manufactured in the territories (Gaza Bank and West Bank and Golan). This issue is the object of an exchange of information, "purely technical" at this verification stage, within the EU Customs Committee.

The day before the visit by the Palestinian leader Yasser Arafat to Brussels (see other story), Mr Patten and Mrs Itsik undertook an overview of the political situation in the Middle East, including an exchange of views on the "Mitchell" report - an opportunity for Mr Patten "to insist over the importance of rapidly and efficiently implementing the recommendations" made by this commission and over the causes of the failure of the peace process. Over the issue of rules of origin, both expressed the desire to move forward and to carefully prepare the Euro-Israeli meeting that will take place at expert level (rules of origin committee) in mid-July.

At this stage, this case is broached on both sides from the purely technical angle, from the application of the June 2000 Association Agreement. This being the spirit of the exchange of information to which, on Wednesday took part the representatives of the EU 15 and the Commission within the Customs Committee, each having put across information already gathered from the Israeli State, indicated a European source. Israel has, in virtue of the Association Agreement, a ten month period (ending in June) to answer the questionnaires sent, in dispersed order, by each of the Member State, which is a destination for exports of Palestinian products. We answer all in time, assures the Israeli side. This case, which will be the object of a new customs round in mid-June, could nevertheless move to a higher gear next month, for a lack of an agreement over the modus operandi between the two parties. We may refuse the preferences on products of Palestinian origin, on a case by case basis, in virtue of the agreement, a possibility envisaged by the Europeans, which would not be a sanction, but an pure and simple enforcement of the provisions. On the Israeli side, they underline their confidence in the hypothesis of a litigation (if the preferences were to be ended: Ed.): we hope not to get there, but we have undertaken an exhaustive legal exercise over this issue and think that our position is on solid foundations.

The meeting between Mr Lamy and Mrs Itsik, qualified as "positive and direct" by the Israeli side, mainly covered the laborious advancement of the standardisation process, by agreeing in fine to hold a preparatory meeting at a presently undetermined future date. Mrs Itsik and Mr Lamy also agreed on the creation of an informal committee, a flexible instrument and far too diplomatic aimed at promoting Euro-Israeli trade. Mrs Itsik, according to her close colleagues, cut short any political discussion with her Community counterpart: we are not here to talk politics, but trade, she answered in substance to Mr Lamy, who outlined his point of view over the Barcelona process.

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