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Foreign Reserves Trade Talks
Go Sour
At Record Level
Israel will not sign a new trade
agreement with the European
Union (EU) unless the EU shows
at least some flexibility.
That's the word from Zvi Alon,
deputy director general of the
Agriculture Ministry, following a
series of unsuccessful discussions
with three EU representatives.
The ministry claims it under-
stood the three, who head the EU
delegation for agriculture and
processed foods, were coming to
Israel to conclude the agreement
in these areas, but the negotia-
tions were conducted in a very
bad atmosphere.
"We were prepared to make
very generous concessions to con-
Clal Pharmaceutical Industries clude the agreement, but the EU
(CPI), a fully owned subsidiary of made one new offer, withdrew
Israel's Clal Industries, and Phar- two offers, and provided no new
maceutical Resources (PRI) have solutions to the critical list of ma-
signed an affiance and strategic jor issues," said Mr. Alon.
relationship to develop,
manufacture and distribute gener-
ic pharmaceuticals worldwide.
According to the agreement,
CPI will purchase 11.5 percent of
PRI for $20 million. The compa-
nies also agreed to establish a
joint research and development The Israel Industry and Trade
company in Tel Aviv at a mini- Ministry should re-examine its
mum investment of $15 million decision not to insure Israeli ex-
porters to the former Soviet
over three years.
PRI is a holding company trad- Union against commercial risks,
ed on the New York Stock Ex- Knesset Finance Committee
change. Its subsidiaries develop chairman Gedalya Gal (Labor)
and manufacture more than 86 recommended.
A survey of Israeli trade with the
generic products.
CPI was set up in 1994 as part Commonwealth of Independent
of Clal Industries' plans to expand States shows that it has grown by
some 700 percent since 1992.
in the pharmaceutical sector.
The potential in this market is
PRI plans to invest $7.35 mil-
lion of the sale's proceeds in the enormous, exporters stress, be-
joint R&D firm. The remaining cause the CIS's total imports are
$12.65 million will be invested in some $66 billion a year.
In addition, noted Dr. Yuri
research and development, capi-
Stern of the Association for New
tal expenditure and expansion.
CPI will invest $7.65 million Entrepreneurs, Israel has certain
in the joint venture, which will advantages in this market — its
be 51 percent owned by CPI and pool of immigrants from the CIS
and a business culture which ad-
49 percent owned by PRI.
The venture will be engaged in justs more easily to the chaotic
the development of innovative conditions in the CIS than do
drugs and those that are difficult those of many Western countries.
However, exporters said
to make generic.
PRI has distribution rights for growth in this market would pro-
its products, and those of the joint ceed even more rapidly if the gov-
venture, in North and South ernment would once again offer
them insurance against com-
America.
Sales, distribution and prod- mercial risks.
The government stopped this
uct licensing activities elsewhere
will be managed by CPI and the program recently, and now pro-
vides insurance only against po-
joint venture.
litical risks.
Foreign currency reserves in Is-
rael bulged to a record high of
nearly $9 billion last month as
speculators took advantage of
high shekel interest rates, the
Bank of Israel reported.
Despite Bank of Israel Gover-
nor Jacob Frenkel's recent move
to cut interest rates by L5 per-
centage points, real interest rates
have remained high, based on the
low consumer price indexes since
the beginning of the year.
Clal Will Sell
Generic Drugs
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3 GENERNITONS
Search Is On
For Ventures
HONESIAT
I
DEPENDABILMT
CIS Exporters
Ask For Insurance
All Business' Are Not Created Equal.
There Is A Difference.
WELNTRAUB
JEWELERS
In Store Specials Everydav
Sunset. Strip 29536 Northwestern Hwy. • Southfteld • (810) 3574000
Hours: Mon.-Sat. 10-5
Canadian software firm Delari-
na, through Israeli company
Economic Task Force, is search-
ing for Israeli companies in
the multimedia, speech recogni-
tion and foreign language adap-
tation fields for possible joint
ventures.
Banks
Cooperating
United Mizrahi Bank of Israel and
Chinese banks have agreed to co-
operate in commercial financing
and other banking fields. United
Mizrahi Bank said the issue was
discussed with the Chinese com-
mercial attache in Israel.