Letter to Congress Transmitting the Israel-U.S.
Free Trade Area Agreement
(April 29, 1985)
To the Congress of the United States:
I am pleased to transmit to you, pursuant to section
102 of the Trade Act of 1974 (19 U.S.C. 2112(e)(2)), the text of the
Agreement on the Establishment of a Free Trade Area between the Government
of the United States of America and the Government of Israel entered
into in Washington on April 22, 1985.
This historic Agreement was negotiated under the terms
of Title IV of the Trade and Tariff Act of 1984 (P.L. 98-573) and provides
for the creation of a Free Trade Area between the United States and
Israel in order to strengthen and develop the two nations' economic
relations and to further the friendship between them.
With the Agreement I am transmitting the proposed United
States-Israel Free Trade Area Implementation Act to be considered by
the Congress in accordance with the procedures of section 151 of the
Trade Act of 1974; and a statement of administrative action that is
proposed to implement the Agreement. Section 102 also requires a statement
of reasons, first, as to how the Agreement serves the interest of United
States commerce, and second, as to why the implementing bill and proposed
administrative action is required or appropriate to carry it out. The
second of these requirements is met by the statement of administrative
action. This letter shall meet the first.
The signing of this Agreement on April 22, 1985 marked
the end of lengthy negotiations with Israel. The passage of the proposed
implementing legislation, I believe, will mark the beginning of a strong
new trading relationship with our friends in Israel. This Agreement,
the first of its kind for the United States, provides for the elimination
of substantially all the trade barriers between the United States and
Israel and will be instrumental in the development of bilateral trade
for our mutual benefit.
This Agreement serves the interests of United States
commerce because it will create significant expansion of our trade with
Israel. For the United States, the Agreement will provide duty free
access to an $8 billion market in which we currently face relatively
high duties and certain nontariff barriers and in which we face a tariff
disparity resulting from an Israeli agreement with the European Community.
This Agreement will ensure that American firms can compete fairly and
competitively in the Israeli market.
I would like, in closing, to express my appreciation
for the close cooperation between the Congress and the Administration
that has been the hallmark of our joint effort to make the U.S.-Israel
Free Trade Area a reality. Our success in this undertaking should be
a matter of pride for us all and a model for future trade initiatives.
RONALD REAGAN
The White House,
April 29, 1985.
Sources: Public Papers of the President |