The following text is intended for general reference only. It is currently under review for accuracy and completeness, as well as formatting.

EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
WASHINGTON, D.C. 20508

I have the honor to confirm the following understanding reached between the delegation of the Government of the United States of America (the "United States") and the delegation of the Government of Israel ("Israel") with respect to the implementation of the agreement on certain aspects of trade in agricultural products in the form of an exchange of letters between Charlene Barshefsky, Acting United States Representative, and Natan Sharansky, Minister of Industry and Trade, dated November 4, 1996 (the "Agreement").

1. Except as provided in paragraph 2 below, where Israel maintains a tariff-rate quota for a product pursuant to its schedule annexed to the General Agreement on Tariffs and Trade 1994 ("GATT 1994 schedule"), the quantity provided for that product in Annex B to the Agreement shall be in addition to the in-quota quantity provided under Israel's GATT 1994 schedule.

2. With respect to items 0406.3000, 0406.9000, 0806.2000 in Annex B, Israel may, consistent with the Marrakesh Agreement Establishing in World Trade Organization, count the quantities of these items specified in Annex B toward Israel's in quota quantity commitment for these items under its GATT 1994 schedule. Any such action shall not affect the United States' eligibility to supply potentially remaining available in-quota quantities for these items under its GATT 1994 schedule. Any such action shall not affect the United States' eligibility to supply potentially remaining available in-quota quantities for these items under Israel's GATT 1994 schedule.

I have the honor to propose that this letter, and your letter of confirmation in reply, constitute an agreement between our two governments, to enter into effect on the date that the Agreement enters into effect.

EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
WASHINGTON, DC 20508

I have the honor to confirm the following understanding reached between the delegation of the Government of the United States of America (the "United States") and the delegation of the Government of Israel ("Israel") with respect to the implementation of the agreement on certain aspects of trade in agricultural products in the form of an exchange of letters between Charlene Barshefsky, Acting United States Trade Representative, and Natan Sharansky, Minister of Industry and Trade, dated November 4, 1996 (the "Agreement").

Eighteen months after the date of entry into force of the Agreement , if the United States so requests, the United States and Israel hereby agree to conduct a joint review of the market access granted under the Agreement for U.S. wine products classified under Israeli custom tariff numbers 2204.2000, 2204.2100, 2204.2900, 2204.3000, 2205.1000, and 2205.9000 in order to determine if the terms of the Agreement are meeting the goal of improving market access for these wine products.

I have the honor to propose that this letter and your letter of confirmation in reply constitute an agreement between our tow governments, to enter into effect on the date that the Agreement enters into effect.

1. The Government of Israel shall, with respect to products of the United States- -

(a) listed in Annex A, permit the importation into Israel free of any customs duty, fee, or other import charge Israel free of any customs duty, fee, or other import charge;

(b) listed in Annex B, permit the importation into Israel free of any customs duty, fee, or other import charge of not less than the quantity specified in that Annex for the applicable year and permit the importation of any quantity in excess of that quantity at a rate no greater than the rate specified in Annex C for the applicable year; and

2. With respect to any good within chapters 1 through 24 of the Harmonized System that is not listed in Annex A, B, or C, the Government of Israel shall permit its importation into Israel at a rate no greater than ninety percent of the rate applied at the time of importation to imports of that good from other countries. With respect to any agricultural product listed in paragraph 1 (ii) of Annex 1 or the Agreement on Agriculture annexed to the Marrakesh Agreement Establishing the World Trade Organization that is not listed in Annex A, B, or C of this agreement, the Government of Israel shall permit its importation free of any customs duty, fee, or other import charge.

3. The Government of the United States shall, with respect to products of Israel imported into the customs territory of the United States listed in Annex D, permit the importation free of any customs duty, fee or other import charge of not less than the quantity specified in that Annex for the applicable year. For products in Annex for the applicable year shall be no less favorable than what is specified in the U.S. WTO Schedule. The U.S. treatment of over-quota quantities for products of Israel imported into the customs territory of the United States of the type listed in WTO notifications G/AG/N/USA/2 dated March 8, 1995, and G/AG/N/USA/2 Add. 1, dated April 21, 1995, ("WTO notifications") that are not listed in Annex D, shall be no less favorable than what is specified in the U.S. WTO Schedule, and, as specified in the U.S.

4. The item numbers in Annexes A, B, and C refer to the item numbers in the 1996 Israeli Customs Tariff in effect on July 1, 1996. The item numbers in Annex D refer to the Harmonized Tariff Schedule of the United States (1996) in effect on January 1, 1996.

5. The in-quota quantity specified in column 4 of Annex B and column 4 of Annex D shall be available for the period beginning on the effective date of this agreement through December 31, 1996, and shall be calculated to include any quantity that was imported on or after January 1, 1996, free of any customs duty, fee or other import charge, except that:

(a) quantities of items 08.06.2000 and 08.13.2000 imported on or after January 1, 1996 shall be included in the in-quota quantity specified in Annex B, even if they were subject to customs duties, fees or other import charges; and

(b) notwithstanding the quantities specified in Annex B, the quantities available for 1996 for the following products are:

Each successive annual quantity in Annex B or Annex D shall be made effective on January 1 of the applicable year.

6. For the products specified in Annex C, the Government of Israel shall not apply to a product of the United States in any year a rate greater than the lesser of:

(a) the most-favored-nation rate of customs duty applied by the Government of Israel as specified in Annex C; and

(b) the most-favored-nation rate of customs duty applied by the Government of Israel at the time of importation reduced by the percentage specified for that year in Annex C.

8. The term "customs duty, fee, or other import charge" shall not include any such charge--

(b) to the extent not inconsistent with the FTAA, permitted by the agreements listed in

Annex 1 to the Marrakesh Agreement Establishing the World Trade Organization, other than Article 5 of the Agreement on Agriculture.

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
0511.0000	Animal products not else-where specified	A
0511.1000	Bovine semen	A
0511.9000	Other	A

Ch. #6

All Chapter 6	Live trees and plants, bulbs, root; cut flowers and ornamental foliage	A
Ch. #7

0711.0000	Vegetables provisionally preserved:
0711.1000	Onions	A
0711.4000	Cucumbers and gherkins	A
0711.3000	Capers	A

0712.0000	Dried vegetables, whole, sliced, powder...	A
0712.2000	Onions	A
0712.3000	Mushrooms and truffles	A
0712.9000	Other vegetables; mixtures of vegetables	A

0713.0000	Dried leguminous vegetables...	A
0713.1000	Peas (Pisum sativum)	A
0713.3000	Beans (Vigna...)	A
0713.4000	Lentils	A
0713.5000	Broad beans	A
0713.9000	Others	A

0714.0000	Manioc, arrowroot, salep...sweet potatoes
0714.1000	Manioc	A
0714.9000	Other	A

Ch. #8

0801.0000	Coconuts, brazil nuts & cashew nuts...	A
0801.1000	Coconuts	A
0801.2000	Brazil nuts	A
0801.3000	Cashew nuts	A

0802.0000	Other nuts...
0802.1000	Almonds
0802.1100	- in shell
0802.1110	- for chocolate	A
0802.1200	- shelled

Annex A : Free Import into Israel from USA

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
0802.1210	- - for chocolate	A

0802.2000	Hazelnuts or filberts	A

0802.3000	Walnuts	A
0802.3100	- in shell	A
0802.3110	- - within Annex 5
0802.3190	- - others	A
0802.3200	- - shelled	A
0802.3210	- - within Annex 5
0802.3290	- - others	A

0802.4000	Chestnuts	A

0802.5000	Pistachios	A

0802.9000	Others	A
0802.9010	- for chocolate	A
0802.9020	- pecan & macadamia	A
0802.9021	- - with values < o 13.70/Kg, except .9022	A
0802.9022	- - within Annex 5
0802.9029	- - others	A
0802.9090	- - other nuts	A
0802.9092	- - within Annex 5
0802.9099	- - others	A

0804.0000	Dates, figs, pineapples, avocados, guavas, mangoes, mangosteens, fresh or dried

0804.2000	Figs	A
0804.2010	- fresh	A
0804.2011	- - (May-Nov.) with value < o 4.40/Kg	A
0804.2012	- - (May-Nov.) others	A
0804.2019	- - (Dec.-Apr.)	A
0804.2020	- dried	A

0804.2029	- - others	A

0804.3000	Pineapples	A

0804.5000	Guavas, mangoes, mangosteens	A
0804.5090	- Dried	A

0810.0000	Other fruit, fresh
0810.2000	Raspberries, blackberries...	A
0810.3000	Gooseberries & currants	A
0810.4000	Cranberries, bilberries...	A

Annex A : Free Import into Israel from USA

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3

0811.0000	Frozen fruits

0811.2000	Raspberries, blackberries ... loganberries	A
0811.9010	Cherries, Blueberries	A

0812.0000	Fruit and nuts preserved by sulfur dioxide, in salt water, not edible	A
0813.0000	Fruits, dried, except 0801.-, 0806.-,mixture of nuts; or dried fruits of this Chapter
0813.1000	Apricots	A
0813.3000	Apples	A
0813.4000	Other fruit	A
0813.5000	- Mix. of nuts or dried fruits of this chapter
0813.5010	- - mixed nuts
0813.5011	- - coconut, brazil, cashew	A
0813.5013	- - other	A

0813.5020	- - Mixed dried nuts
0813.5021	- - containing 50% or more dried fruits	A
0813.5023	- - other	A

0814.0000	Fruit peels, fresh, frozen, dried, preserved

Ch. #9
All Chapter 9	Coffee, tea, mate, spices	A
Ch. #10

1001.0000	Wheat & mesin	A

1001.1000	Durum wheat
1001.1010	- within Annex 5
1001.1090	- other	A
1001.9000	Other
1001.9010	- within Annex 5
1001.9090	- other
	Note: Domestic purchase requirements are maintained for imports of non-feed wheat.
1002.0000	Rye	A
1002.0010	- within Annex 5
1002.0090	- other	A

1003.0000	Barley	A
1003.0010	- within Annex 5

Annex A : Free Import into Israel from USA

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
1003.0090	- other	A

1004.0000	Oats	A

1005.0000	Maize (corn)
1005.1000	Seed
1005.1090	- other	A
1005.9000	Other	A

1006.0000	Rice	A
1006.1000	in the husk	A
1006.2000	Husked (brown) rice	A
1006.3000	Semi-milled or wholly milled rice	A
1006.3010	- within Annex 5
1006.3090	- other	A
1006.4000	Broken rice	A

1007.0000	Grain Sorghum	A

1008.0000	Buckwheat, millet & canary seed: other	A
1008.1000	Buckwheat	A
1008.2000	Millet	A
1008.3000	Canary seeds	A
1008.4000	Other cereals	A

Ch. #11
Ch. #11

1101.0000	Wheat or meslin flour	A

1102.0000	Cereal flours other than of wheat or meslin	A
1102.1000	- rye flour	A
1102.2000	- maize (corn) flour	A
1102.3000	- rice flour	A
1102.9000	- other	A

1103.0000	Cereal groats, meal & pellets	A
1103.1000	- groats & meal	A
1103.2000	- pellets
		A
1104.0000	Cereals grains otherwise worked...	A
1104.1000	- rolled or flaked grains	A
1104.2000	- other worked grains	A
1104.3000	Germ of cereals, whole, rolled, flaked...	A
			1105.0000Flour, meal & flakes of potatoesA 1105.1000- flour an

Annex A : Free Import into Israel from USA

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
1105.2000	- flakes	A

1106.0000	Flour or meal of dried leguminous vegetables...	A
1106.1000	- of heading no. 0713. -	A
1106.2000	- of sago, roots or tubers of head. 0714. -	A
1106.3000	- flour, meal & powder of the products of chapter 8	A

1107.0000	Malt, whether or not roasted	A
1107.1000	- not roasted	A
1107.2000	- roasted	A

1108.0000	Starches, inulin
1108.1000	- starches
1108.1200	- - maize (corn) starch
1108.1210	- - waxy	A
1108.1300	- - potato starch	A
1108.1400	- - manioc (cassava) starch	A
1108.1900	- - other starches	A

1108.2000	- inulin	A
		A
1109.0000	Wheat gluten, whether or not dried	A

Ch. #12

1201.0000	Soya beans, whether or not broken	A

1203.0000	Copra	A

1204.0000	Linseed	A

1205.0000	Rape or colsa seeds	A

1206.0000	Sunflower seeds
1206.1010	For oil	A

1207.0000	Other oil seeds & oleaginous fruits	A
1207.1000	Palm nuts & kernels	A
1207.2000	Cotton seeds	A
1207.3000	Castor oil seeds	A
1207.4000	Sesamum seeds	A
1207.5000	Mustard seeds	A
1207.6000	Safflower seeds	A
1207.9000	Other	A

1208.0000	Flours & meals...except of mustard	A

Annex A : Free Import into Israel from USA

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
1208.1000	Of soya beans	A
1208.9000	Other	A

1209.0000	Seeds, fruits & spores, for sowing	A
1209.1000	Beet seed	A
1209.2000	Seeds of forage plants, other than beet seed	A
1209.3000	Seeds of herbaceous plants	A
1209.9000	Other	A

1210.0000	Hop cones	A
1210.1000	- not ground . . .	A
1210.2000	- ground . . .	A

1211.0000	Plants for pharmacy, perfumery	A
1211.1000	Liquorice roots	A
1211.2000	Ginseng roots	A
1211.9000	Other plants for pharmacy, perfumery	A

1212.0000	Locust beans, seaweed & algae . . .	A
1212.1000	Locust beans	A
1212.2000	Seaweed & algae	A

1212.3000	Apricot, peach, plum stones & kernels	A

1212.9000	Other	A

1213.0000	Cereal straw & husks . . .	A

1214.0000	Swedes, mangolds, fodder roots, hey . . .	A
1214.1000	Lucerne (alfalfa)	A
1214.9000	Other	A

Ch. #13

All Chapter 13	Lac Gum, Resins, and other Vegetable Extracts	A
Ch. #14

1401.1000	Bamboo	A
1401.2000	Rattans	A
1401.9000	Other weaving reeds	A
1402.1000	Kapok	A
1402.9000	Other stuffing	A
1403.1000	Broomcom (Sorghum vulgar var. technicum)	A
1403.9000	Other	A

Annex A : Free Import into Israel from USA

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
1404.1000	Raw vegetable materials for coloring	A
1404.2000	Cotton linters	A
1404.9000	Other
1404.9090	Other	A

Ch. #15

1502.0000	Fatty greases of cow, sheep or goats;	A

1503.0010	Sitanne lard, Tallow, oliostianne, edible	A
1503.0090	Other	A

1504.1000	Fish-liver oils and their fractions: -	A
1504.2000	Fats and oils of fish, other than liver:	A
1504.3000	Fats and oils and their fractions, of manne mammals: -	A

1505.1000	Wool grease, crude	A
1505.9000	Other	A

1506.0000	Oils and their fractions, animal:	A

1507.1000	Soya bean Crude oil, whether or not degummed: -
1507.1090	Other	A
1507.9000	Soya bean oil, Other. -
1507.9090	Other	A
1508.1000	Groundnut oil, Crude	A
1508.9000	Groundnut oil, Other: -	A
1509.9000	Olive oil, Other-(not virgin):
1509.9010	Hardened or solidified
1509.9011	Edible	A
1509.9012	Other, containing not less than 90%	A
1509.9019	Other	A
1509.9020	Other (Not Hardened or solidified)
1509.9029	Other	A
1510.0010	Other oils from olives, Hardened or solidified
1510.0011	Edible	A
1510.0012	Other, containing not less than 90%	A
1510.0019	Other, not edible	A
1510.0020	Other, Not Hardened or solidified
1510.0029	Other	A
1511.0000	Palm Oil and fractions, distilled	A
1511.1000	Crude oil: -	A
1511.9000	Other: -	A
1512.1000	Sunflower seed oil, safflower oil and their fractions: -
1512.1100	Crude oil: -
1512.1190	Other	A

Annex A : Free Import into Israel from USA

Only items for which "A" appears in column 3 are in Annex A. Other items appear for purposes of information and definition only.

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
1512.1900	Other: -
1512.1920	Other -
1512.1929	Other	A
1512.2100	Crude oil, whether or not Gossypol has been removed: -
1512.2190	Other	A
1512.2900	Other (not crude): -
1512.2910	Other, containing not less than 90%
1512.2930	Other	A
1512.2990	Other -
1512.2999	Other	A
1513.1000	Coconut (copra) oil and its fractions:	A
1513.2000	Palm kernel oil or babassu oil and its fractions:	A
1514.0000	Rape seed oil, colza oil, and mustard seed oil and their fractions
1514.1000	Crude oil: -
1514.1020	Other	A
1514.9000	Other: -
1514.9010	Other, containing not less than 90%	A
1514.9020	Other -
1514.9029	Other	A
1515.1000	Linseed oil and its fractions:-	A
1515.2000	Maize (corn) oil and its fraction: -
1515.2100	Crude oil: -
1515.2120	Other	A
1515.2900	Other: -
1515.2910	Other, containing not less than 90%	A
1515.2920	Other -	A
1515.2929	Other	A
1515.3000	Castor oil and its fractions: -	A
1515.4000

ISRAEL TARIFF CODE	SHORT DESCRIPTION OF PRODUCT	Annex A
1	2	3
0206.2110	- - within Annex 5
0206.2190	- - others	A
0206.2200	- livers	A
0206.2210	- - within Annex 5
0206.2290	- - others	A
0206.2900	- others
0206.2910	- - within Annex 5
0206.2990	- - others	A

0206.9000	Others, frozen	A

0208.0000	Other meat and offal of other animals	A
0208.1000	Meat of rabbits or hares	A
0208.2000	Frogs legs	A
0208.9000	Other meat & edible offal	A

Ch. #3

0301.0000	Live fish	A

0304.0000	Fish, fillet or other parts, fresh, chilled or frozen
0304.2000	- frozen, fillet
ex.0304.2-	- - from salt water	A

Ch. #5

0501.0000	Human hair...waste	A

0502.0000	Pigs, hogs or boar bristles....	A

0503.0000	Horsehair and horsehair waste	A

0504.0000	Guts, bladders & stomachs of animals...	A
0505.0000	Skins & other parts of birds...
0505.1000	Feathers of a kind used for stuffing...	A
0506.0000	Bones & horn-cores, unworked...	A
0507.0000	Ivory, tortoise-shell, whalebone & ...	A
0508.0000	Coral, shells of mollusks, crustacean	A

0509.0000	Natural sponges of animal origin	A

0510.0000	Ambergns, castreum, civet and musk...	A