THE DETROIT JEWISH NEWS
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Washington (JTA) — United
States and Israeli officials last
week defended the just concluded
U.S.-Israel Free Trade Agree-
ment (FTA) before members of
Congress as the House Ways and
Means Committee opened hear-
ings on the pact.
The new agreemeht, which pro-
vides for the gradual elimination
by both countries of tariffs on
goods traded between them is ex-
pected to win Congressional ap-
proval by early next month. But
continued opposition from U.S.
manufacturers and reservations
about the precedent-setting na-
ture of the agreement indicates
that some modification will be
made before the text is completed
and submitted to Congress.
In the hearings last week,
Assistant U.S. Trade Representa-
tive Doral Cooper and Philip
Opher of the American-Israel
Chamber of Commerce and Indus-
try defended the agreement as an
opportunity for both U.S. and Is-
raeli exporters to expand their re-
spective shares of the foreign
market.
In particular, Cooper noted that
the U.S. would most benefit from
the phasing out of tariffs, since a
far small percentage of U.S. ex-
ports than Israeli goods exported
to the U.S. currently benefit from
duty-free tariffs.
According to the agreement,
tariffs on some goods will be
eliminated immediately while
duties on goods considered "sensi-
tive" to import competition will be
phased out progressively over ten
years. The agreement also pro-
vides for the gradual elimination
of non-tariff areas including Is-
(=-3 raeli export subsidies and its ex-
tension of certain credits for ex-
port goods.
The agreement, Cooper said,
would also permit the U.S. to
compete on an equal footing with
Israeli producers in Europe. The
European Economic Community
has already concluded a similar .
free trade agreement with Israel
according to which duties on most
manufactured goods will be com-
pletely phased out by 1989.
But representatives of the sen-
sitive textile and leather indus-
tries, as well as spokesmen for av-
ocado and rose exporters testified
that the agreement's provision to
phase out Israeli export subsidies
over a six-year period was insuffi-
cient to protect their industries.
They also objected to provisions
for Presidential waiver of any law
restricting U.S. government pro-
curement of certain goods to
domestic producers. Such restric-
tions are included in the General
Agreement on Tariffs and Trade
(GATT), which Israel is expected
to sign as a provision of the new
agreement.
While House representatives
spoke favorably of the agreement
at last week's hearing, questions
were also raised about the prece-
dent it might set for the conclu-
sion of similar agreements with
other countries. Rep. Sam Gib-
bons (D-Fla.), suggesting that
Arab nations might also indicate
an interest in such a pact, said he
had spoken with Israeli officials
here and was told that "Israelis
would welcome" such an ar-
rangement.
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