The new set of rules is significant to Mercosur considering that Israel is one of the world’s most entrepreneurial countries – it counts with the second largest number of startup companies in the world and the largest number of NASDAQ-listed companies outside North America.

The treaty covers about 90% of the trade flow between the two regions, which should reach the estimated amount of 5 billion dollars by 2017.

Created in compliance with the conditions set by Article XXIV of the 1994 General Agreement on Tariffs and Trade, the FTA goes far beyond restating the international multilateral trend.

It provides specific bilateral rules on (i) trade in goods, mainly customs duties, (ii) rules of origin, (iii) safeguards, (iv) technical regulations, standards and conformity assessment procedures, (v) sanitary and phytosanitary measures and (vi) technical and technological cooperation.

For the purposes of implementing and administrating the FTA, a permanent Joint Committee is established. Should it properly fulfill its task, the treaty is expected to promote the creation, expansion and security of trade between the two regions.