Mercosur, Israel ink free-trade agreeement

The deal was announced during a two-day summit of Mercosur leaders in the Uruguayan capital
 
Israel signed last week a free-trade agreement with the Mercosur trade bloc, making it the first country outside Latin America to do so. The deal was announced during a two-day summit of Mercosur leaders in the Uruguayan capital and followed two years of negotiations to bolster trade ties between South American countries and Israel. Leaders said they hope to use it as a model for treaties with other Mideast nations, South Africa and India.
 
The agreement, which was signed in Montevideo, Uruguay, calls for a decade-long phaseout of tariffs on most goods and services and is expected to double bilateral trade within three years, Eli Yishai, Israel's minister of trade, industry and labor, said in a statement on the ministry's Web site.
 
Trade between Israel and the Mercosur countries, which include Argentina, Brazil, Paraguay and Uruguay, is currently about $1.1 billion.
 
“I see the agreement as a tool that will allow access to important markets with high potential for Israeli industry”, Yishai said. "This agreement is an enormous satisfaction that will help develop our links to the Mercosur countries," said Israel's embassy in Argentina.
 
Mercosur consists of Argentina, Brazil, Paraguay and Uruguay, with Venezuela awaiting approval. Associates are Bolivia, Chile, Colombia and Peru. Trade with Israel neared $1.6 billion in 2006.