Israel–European Union relations

Euro-Israeli relations

European Union
Israel

Israel is an associated state of the European Union. The relations between the two are framed in the European Neighbourhood Policy (ENP), the Euro-Mediterranean Partnership, and the Union for the Mediterranean.

The main legal ties between Israel and the EU are set by the 1995 Association Agreement. Several other agreements cover sectoral issues.

Relations between Israel and the European Union are generally positive on the economic level, though affected by the Israeli–Palestinian conflict on the political level.

Historical background

Israel and the European Economic Community established diplomatic relations as early as 1959. A first free trade area agreement was signed in 1975. In the Essen Council in 1994, the EU signaled its willingness to establish special relations with Israel.

Multilaterally, Israel takes part in the 1995 Barcelona process (Euro-Mediterranean Partnership), and the subsequent 2008 Union for the Mediterranean, and since 2003 in the European Neighbourhood Policy (ENP).

Bilaterally, after a Cooperation Agreement in 1975, an Association Agreement came into force in 2000, providing for preferential economic, commercial, technological and research status between the parties. It included measures for the creation of a free trade area in industrial goods, and the liberalisation of trade in agricultural goods, of services, and of capital movements. The agreement also set the basis for cultural, research and political cooperation

The EU-Israel Association Agreement (2000)

The EU-Israel Association Agreement[1] forms the legal basis governing relations between Israel and the European Union, modeled on the network of Euro-Mediterranean Agreements between the Union and its partners in the southern flank of the Mediterranean Sea.

The agreement with Israel incorporates free trade arrangements for industrial goods, concessionary arrangements for trade in agricultural products (a new agreement here entered into force in 2004), and opens up the prospect for greater liberalisation of trade in services, and farm goods, from 2005. The Association Agreement was signed in Brussels on 20 November 1995, and entered into force on 1 June 2000,[2] following ratification by the 15 Member States' Parliaments, the European Parliament and the Knesset. It replaces the earlier Co-operation Agreement of 1975.

The Association Agreement established two main bodies for the EU-Israel dialogue. The EU-Israel Association Council (held at ministerial level) and the EU-Israel Association Committee (held at the level of senior officials) meet at regular intervals, to discuss political and economic issues as well as bilateral or regional co-operation.

Article 2 of the Association Agreement states:

Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect for human rights and democratic principles, which guides their internal and international policy and constitutes an essential element of this Agreement.

Dispute on preferential treatment for Israeli products originating from Palestinian territories

Goods from Israeli settlements in the occupied Palestinian territories are not subjected to the free trade agreement, as they are not considered Israeli.

Since 1998, Israel and the EU have been in dispute over the legal treatment of products exported to the EU from the occupied Palestinian territories. Israel argues that these are produced in its custom territory and should thus be subjected to the Association Agreement and benefit from preferential treatment. The EU upholds that the Territories are not part of Israel, given the illegality of the occupation under international law, and such products do not therefore benefit from preferential treatment.[3]

A 2001 Avis by the European Commission confirmed the lack of preferential status for such products, inducing infuriated reactions from Israel, though the economic significance of the Territories-based Israeli products is very limited (€100 mln/year over a total of €6 bln/year). Differently than the EU, the United States admit custom-free goods exported from the Territories under their 1985 Free trade agreement.[3]

A solution was negotiated in 2004, whereby the Israeli authorities would specify on the certificate of origin the geographic location of the production site (e.g. Israel, Barkan), without having to specify as such if the goods originate from the Territories or not. The EU customs authorities will then be able to discriminate the exact origin and provide preferential treatment only to goods from Israel proper, giving de facto meaning to the EU policy of non-recognition of the Territories as part of the State of Israel[3]

The 2010 ruling of the European Court of Justice in the Brita case confirmed that products originating in the West Bank do not qualify for preferential custom treatment under the EC-Israel Agreement, and that contrary assertions by Israeli authorities are not binding upon EU customs authorities. The ECJ relied in its reasoning on the presence of two, distinct and equal Association agreements, one with Israel, applying to the "territory of the State of Israel", and one with the PLO, applying to the territory of the West Bank and Gaza Strip, and on the general principle of customary international law that an obligation cannot be imposed on a third party without its consent. The Court concluded that the EC-Israel Agreement may not be interpreted in such a way as to compel the Palestinian Authorities to waive their right to exercise the competence conferred upon them by virtue of the EC-PLO Agreement and, in particular, to refrain from exercising the right to issue customs documents providing proof of origin for goods manufactured in the West Bank and the Gaza Strip. It follows that products originating in the West Bank do not fall within the territorial scope of the EC-Israel Agreement and do not therefore qualify for preferential treatment under that agreement.[4][5][6]

Sectoral agreements

ACAA free trade agreement in pharmaceutics (2012)

Upgrading the Association Agreement has long been on hold following a vote in the European Parliament to postpone the issue in December 2008, due to continuing settlement-building and the blockade of the Gaza Strip.[7]

The Agreements on Conformity Assessment and Acceptance of Industrial Products [8] which focus on pharmaceutical products (ACAA) was adopted by the European Parliament on 23 October 2012, following a debate that had lasted for more than a two years of delay. The ratification of ACAA will make it easier to export Israeli pharmaceuticals and other goods to the 27 EU member countries, and vice versa. Following a controversial debate, 379 members of the European Parliamentin favor and 230 against the ratification.[9] The ACAA agreement is in conformity with the Brita ruling on the non-preferential access of goods produced in the Israeli settlements.[10]

Open skies agreement

In June 2013, Israel and the EU signed an open skies agreement, which will come into effect in 2018.[11]

Fields of cooperation

Trade

Trade between the EU and Israel is conducted on the basis of the Association Agreement. The European Union is Israel’s biggest trading partner.[12][13] In 2013 the total volume of bilateral trade (excluding diamonds) came to over €27 billion. In 2013, 32% of Israel’s exports (excluding diamonds) went to the EU and 34% of its imports (excluding diamonds) came from the EU.

Total EU trade with Israel rose from €19.4 billion in 2003 to €31.0 billion in 2012 and €31.4 billion in 2013. EU exports to Israel reached €17.9 billion in 2013, while imports from Israel were €13.5 billion. The trade deficit with Israel was €4.4 billion in the EU’s favour in 2013.

Under the Euro-Mediterranean Agreement, the EU and Israel have free trade in industrial products. The two sides have granted each other significant trade concessions for certain agricultural products, in the form of tariff reduction or elimination, either within quotas or for unlimited quantities.

Science and culture

Israel was the first non-European country to be associated to the European Union’s Framework Programme for Research and Technical Development (RTD). Israel's special status is the result of its high level of scientific and research capability and the dense network of long-standing relations in scientific and technical co-operation between Israel and the EU. The European Commission signed an agreement with Israel in July 2004 allowing for its participation in the EU’s Galileo project for a Global Navigation Satellite System. As of 2014, Israel is a member of the European-science organization CERN, becoming the only non-European member.

Euro-Mediterranean regional programmes

Israel, because of its high national income, is not eligible for bilateral funding under MEDA.[14] It has however been involved in a wide variety of Euro-Mediterranean regional programmes funded under MEDA:

Open issues

Lawsuit to disclose EU funding of Israeli NGOs

The European Union has been criticized for funding Israeli-based political Non-Governmental Organisations (NGOs) that attempt to undermine Israeli policies and preach "division and confrontation".[20] NGO Monitor claims they have identified over 48 million dollars that have been allocated to Israeli and Palestinian NGOs by the European Commission.[21] As a response, the Israeli Knesset attempted to pass two bills that would limit the amount that a foreign government or organization could gift. However, these two bills were never passed into law.[22]

In 2012, the European Court of Justice threw out a lawsuit that would require the European Union to release details of its funding of Israel-based NGOs. The lawsuit, which was filed in January 2010, charged that the European Commission had failed to fulfill European Union transparency obligations after NGO Monitor had tried for 13 months to obtain documentation detailing EU nongovernmental agency funding. Under the European Freedom of Information Act, such funding details must be made available upon request. However, the EC cited “public security,” “privacy” and “commercial interests” in denying the information request.[23]

Inter-relation with Middle East peace process policy

The European Union attaches great importance to the finding of a just and final settlement to the Arab-Israeli conflict and supports initiatives to further the peace process, through the role of the Special Envoy for the Middle East Peace Process (Marc Otte), through its involvement in support of the Quartet (EU, US, Russia, UN), its programmes of humanitarian and other assistance for Palestinians in the West Bank and Gaza, by virtue of the commitments entered into by Israel, the Palestinian Authority and the EU in the European Neighbourhood Policy Action Plans, as well as through programmes for civil society and people to people contacts.[24] The EU is also the largest donor of aid to the Palestinian autonomous areas.

The EU has been more critical of Israel and more supportive of the Palestinians than the US. The general position of the EU is that a Palestinian state should be based on the 1967 borders with land swaps, Jerusalem should be divided and become the capital of both states, and a negotiated settlement be found for the Palestinian refugee issue, although member states have sometimes been divided on these issues. However, all EU states universally consider Israeli settlements illegal under international law. The EU has insisted that it will not recognize any changes to the 1967 borders other than those agreed between the parties. Israel's settlement program has thus led to tensions.[25] The most difficult of these issues, however, is Jerusalem. Israel has insisted that the city will remain its undivided capital, and is fiercely opposed to its re-division. Israel does not regard Jewish neighborhoods in East Jerusalem as settlements, while the EU does. East Jerusalem has been a de facto part of Israel following Israel's unilateral annexation of the area, while the EU, along with the rest of the international community, regards it as occupied territory subject to negotiations. The EU has frequently criticized Jewish construction in East Jerusalem.

In 2008, during the French presidency of the Council, the European Union strived to increase cooperation with the US on Middle-Eastern issues, inter alia with a view to coordinating common pressures on Israel.[26] In late 2009 and 2010, a Swedish-drafted EU paper called for Jerusalem to be divided and become the joint capital of Israel and a Palestinian state, and criticized Israel's building in East Jerusalem.[27][28] The draft was met with Israeli opposition, and was eventually not adopted.[29]

European Union foreign ministers welcomed Prime Minister Benjamin Netanyahu's conditional endorsement of a future Palestinian state in June 2009, but said it was not enough to raise EU-Israel ties to a higher level and questioned the conditions set for backing a Palestinian state and Netanyahu's defense of Jewish settlements. In December 2010, a group of 26 former EU statesmen, including former Foreign Affairs Chief Javier Solana, submitted a written petition calling for the EU to ban imports of settlement products, force Israel to pay the majority of aid required by the Palestinians, link an upgrade in diplomatic relations to a settlement freeze, and send a high-level delegation to east Jerusalem to support Palestinian claims to sovereignty. The request was rebuffed by Foreign Affairs Chief Catherine Ashton.[30]

The EU has also been highly critical of Israeli military actions in the Palestinian territories and Lebanon, often referring to them as "disproportionate" and "excessive force" and calling for an immediate cease-fire. During Operation Defensive Shield in 2002, the European Parliament passed a non-binding resolution calling for economic sanctions on Israel and an arms embargo on both parties. Following the Gaza War, the European Parliament endorsed the Goldstone Report. The EU has also been critical of Israel's Gaza blockade, referring to it as "collective punishment."

EU member states had no common response to the Palestinian Authority's announcement that it would declare independence in September 2011, through the Palestine 194 diplomatic campaign to gain membership for the State of Palestine in the United Nations. Some stated that they might recognize the state if talks did not progress, or to punish Israel for settlement construction. When Palestine was admitted to UNESCO as a full member in October 2011, five EU members states were among the 14 countries that joined Israel in voting against (Czech Republic, Germany, Lithuania, Netherlands and Sweden); eleven voted in favour of Palestinian membership (Austria, Belgium, Cyprus, Finland, France, Greece, Ireland, Luxembourg, Malta, Slovenia, Spain) and eleven abstained (Bulgaria, Denmark, Estonia, Hungary, Italy, Latvia, Poland, Portugal, Romania, Slovakia, United Kingdom).

Incoming president of the European Parliament Martin Schulz has confirmed that relations with Israel will remain frozen until there is movement on the peace process.[31]

A classified working paper produced by European embassies in Israel, parts of which were obtained by the Haaretz newspaper, recommended that the European Union should consider Israel's treatment of its Arab population a "core issue, not second tier to the Israeli-Palestinian conflict".[32] Other issues considered material to relations with Israel include the lack of progress in the peace process, the continued occupation of the Palestinian territories, Israel's definition of itself as Jewish and democratic, and the influence of the Israeli Arab population. Israel's Foreign Ministry replied that the EU members of the Security Council called this "inappropriate bickering" that would make them "irrelevant", and accused the EU of "interfering" in Israel's internal affairs.[33] However, the EU had a divided internal reaction to the working paper: countries including Britain were seeking concrete punitive measures against Israel if they did not address Israeli Arab issues, while other countries including Poland and the Netherlands made their opposition clear to such actions. The final paper did not include any specific EU planned actions on the matters it discussed.

A classified document by EU delegates, obtained by Ynet, suggested funding Palestinian construction projects in Area C of the West Bank without Israel's cooperation, undermining Israeli control. Under the Oslo Accords, Area C is under full Israeli civil and security control. It contains all of Israel's West Bank settlements and a small Palestinian population. The document expressed concern that Israel's policies would undermine the prospect of a Palestinian state on the 1967 borders, and called on Israel to support Palestinian construction across Area C and in East Jerusalem.[34]

A published EU report in early 2012 made an urgent call for the EU to adopt a more "active and visible" implementation of its policy towards Israel and the peace process. A potentially radical proposal for "appropriate EU legislation to prevent/discourage financial transactions in support of settlement activity" was the first indication that some member states were seeking European divestment from businesses actively involved in the settlement enterprise. Under one interpretation of the proposal, the Commission would use legislation to force companies in Europe to break their links with businesses involved in settlement construction and commercial activities. The report also recommended the EU prepare a blacklist of settlers involved in violence, in order to possibly ban them from entering EU member states, encourage PLO activity and representation in east Jerusalem, and for senior EU officials to avoid being escorted by Israeli representatives or security personnel in east Jerusalem.[35][36] The issue of the PLO/Fatah and East Jerusalem has been a flashpoint between Israel and many EU countries because EU diplomats have often met their Palestinian counterparts in the city but have rarely met with Israeli government officials there (even in West Jerusalem, which the EU sees as a current and future part of Israel), which also ties into how the EU has tried to present Tel Aviv as the Israeli capital even though the central seat of government and most government facilities are located in Jerusalem.

Another 2012 EU report recommended that the EU undermine Israeli control of Area C of the West Bank by pursuing and funding Palestinian building projects undertaken without receiving Israeli building permits, which are required in Area C.[34]

EU foreign policy chief Catherine Ashton said she was following with great concern the case of Khader Adnan, a prisoner on hunger strike detained without trial by Israel.[37] Adnan ended his hunger strike after 66 days, after reaching a deal with prosecutors an hour before his case was due to be heard by the Supreme Court of Israel. The EU has been critical of Israel's system of administrative detention.[38]

In 2013 the EU adopted a binding directive[39] according to which the Israeli government will be required to state in any future agreements with the EU that settlements in the West Bank, including East Jerusalem are outside the state of Israel. The directive partially implements an earlier EU foreign ministers' declaration [40] that "all agreements between the state of Israel and the EU must unequivocally and explicitly indicate their inapplicability to the territories occupied by Israel in 1967".[41] The guidelines prohibit the issuing of EU grants, funding, prizes or scholarships to Israeli entities unless a settlement exclusion clause is included. Israeli institutions and bodies situated across the pre-1967 Green Line will be automatically ineligible. The EU directive is similar to the one signed between the United States and Israel in 1972 whereby Israel undertook, in exchange for science funding, to restrict the projects within the 1967 borders. [42] The guidelines do not restrict grants issued by individual EU member states. In advance of the publication of the Guidelines, there was, in Israel, a political and media storm.[43] News Media have suggested Israel will take some action against the EU. Maja Kocijancic, spokeswoman for EU foreign policy chief Catherine Ashton, has said: "The EU is concerned by reports in the Israeli media that the Israeli Minister of Defense has announced a number of restrictions affecting EU activities supporting the Palestinian people. We have not received any official communication from the Israeli authorities. Our delegations on the spot are seeking urgent clarifications".[44]

Israel responded to this initiative by declaring that it will not sign any future agreements with the EU until it "clarifies" its position that no Israeli organization with connections beyond the Green Line can cooperate or receive EU funding.[45]

EU membership for Israel

Although Israel is not in Europe, it considers itself culturally part thereof.[46] Israel thus is a member in many European transnational federations and frameworks and takes part in many European sporting events.[47] Various Israeli ministers have expressed that they would like to see Israel in the EU. Former Italian Prime Minister Silvio Berlusconi, who visited Israel in February 2010, said that his "greatest desire" was to see Israel join the European Union.[48] The European Union's former High Representative for Common Foreign and Security Policy, Javier Solana, stated in 2009 that Israel had a very significant relationship with the EU, amounting almost to full cooperation through participation in the EU's programmes.[49] In 2012, former Bulgarian foreign minister Solomon Passy said Israel should more assertively seek to join NATO and the European Union.[50] In 2014, former Spanish Prime Minister José María Aznar said Israel is needed by the European Union, in an address in a room hired by the Henry Jackson Society in the British House of Commons. Aznar said his report recommends that due to its Western culture and the benefits it brings the European Union, Israel should become a full member of the EU without pre-conditions.[51] Moreover, like most western European countries, Israel is a member of the OECD and from an economic perspective matches the European Union extremely well, with essentially every significant economic indicator (GDP per capita, government deficit, public debt level, current account surplus, inflation level, etc.) closely matching the overall EU average. Israel is however not included among the nine countries that are part of the EU agenda for future enlargement of the European Union.

Further reading

See also

Foreign relations of Israel

External links

Notes and references

  1. ↑ The Agreement was published in the Official Journal of the European Communities No. L 147 Volume 43 (21 June 2000)
  2. ↑ Israel and the Euro-Mediterranean Partnership on the EU homepage
  3. ↑ 3.0 3.1 3.2 Guy Harpaz, "The Dispute over the Treatment of Products Exported to the European Union from the Golan Heights, East Jerusalem, the West Bank and the Gaza Strip - The Limits of Power and the Limits of the Law", Journal of World Trade, 38(6), 2004, p. 1049-1058,
  4. ↑ Summary of the Brita case: "European Court of Justice Judgment C-386/08 Brita (External relations): extracts" issued by the European Commission Ref: 68449
  5. ↑ "EU Eyes Exports from Israeli Settlements" by Christoph Schult in Bloomberg Business Week Global Economics 14 July 2009
  6. ↑ "EU court strikes blow against Israeli settlers" by Andrew Rettman (EUObserver, Feb. 25, 2010)
  7. ↑ http://www.bdsmovement.net/?q=node/229
  8. ↑ Questions and Answers for the Agreement... Includes link to the text of the protocol. Published at some time after 19 January 2013, when the protocol came into force.
  9. ↑ "Israel critics defeated as European Parliament votes in favor of trade agreements"- World Jewish Congress website, 24-10-2012
  10. ↑ European Parliament: Parliamentary questions 27 July 2010. Answer given by Mr De Gucht on behalf of the Commission Ref: E-4237/2010
  11. ↑ Herb Keinon. "Israel-EU formally sign 'Open Skies' agreement". Jerusalem Post. Retrieved 2013-06-28.
  12. ↑ "The Middle East Peace Process". European Union. Retrieved 2008-02-09.
  13. ↑ European Commission: Trade: Policy: Israel (accessed 2013-09-27)
  14. ↑ Explanation of the MEDA programme.
  15. ↑ Euro-Med Youth Action Programme: Official website
  16. ↑ Euro-Med Audiovisual Programme - official website
  17. ↑ FEMISE association website: a propos
  18. ↑ European Organisation for Security Website: definition of Archimedes project
  19. ↑ Euromed Cultural Heritage Programme: Official website
  20. ↑ Funding Israel's Detractors. Wall Street Journal
  21. ↑ throws out NGO funding case brought by Israel-based watchdog. Times of Israel
  22. ↑ Factious funding. Jpost. 2011.
  23. ↑ throws out NGO funding case brought by Israel-based watchdog
  24. ↑ "The Eu's relations with Israel". European Commission website. Retrieved 2006-09-01.
  25. ↑ "EU's Ashton criticizes Israel for approval of 'illegal' settlement homes". Haaretz. 2012-02-23. Retrieved 2012-03-05.
  26. ↑ Tsilla Hershco and Amos Schupak, France, the EU presidency and its implications for the Middle-East, The Israel Journal of Foreign Affairs, Volume 3 No 2, July 19, 2009, pp. 63-73
  27. ↑ In Cairo speech, EU’s Catherine Ashton very critical of Israeli policies
  28. ↑ Rory McCarthy (2009-12-01). "East Jerusalem should be Palestinian capital, says EU draft paper". The Guardian. Retrieved 2012-03-03.
  29. ↑ Akiva Eldar (2010-03-26). "Israeli West Bank food company fakes address for EU markets". Haaretz. Retrieved 2012-01-17.
  30. ↑ "Former EU leaders urge sanctions for Israel settlements". BBC News. 2010-12-10. Retrieved 2012-03-03.
  31. ↑ Primor, Adar."Incoming EU president: Europe to block deals with Israel until peace process moves forward." Haaretz Newspaper, 18 December 2011.
  32. ↑ Barak Ravid (2011-12-16). "Secret EU paper aims to tackle Israel's treatment of Arab minority". Haaretz. Retrieved 2012-01-12.
  33. ↑ Barak Ravid (2011-12-21). "Israel attacks European criticism of West Bank settlement activity". Haaretz. Retrieved 2012-01-12.
  34. ↑ 34.0 34.1 http://www.ynetnews.com/articles/0,7340,L-4174682,00.html
  35. ↑ http://www.ynetnews.com/articles/0,7340,L-4177101,00.html
  36. ↑ Donald Macintyre (2012-01-18). "EU 'should block finance for Israeli settlements'". The Independent (United Kingdom). Retrieved 2012-03-11.
  37. ↑ The Associated Press (2012-02-20). "Palestinian hunger striker appeals to Israel's Supreme Court". Haaretz. Retrieved 2012-03-18.
  38. ↑ Jack Khoury (2012-02-21). "Palestinian prisoner ends 66-day hunger strike after Israel guarantees his release". Haaretz. Retrieved 2012-03-18.
  39. ↑ Item referred to is in Official Journal of the European Union Volume 56 of 19 July 2013, pages 9 to 11. The Official reference to the Guidelines is 213/c205 and its title “Guidelines on the eligibility of Israeli entities and their activities in the territories occupied by Israel since June 1967 for grants, prizes and financial instruments funded by the EU from 2014 onwards”. Although widely reported as a"binding Directive" the guidelines do not bind member states to any action.
  40. ↑ Foreign Affairs Council of Ministers 10 December 2012: Press Release 17438/12: Pages 7 - 9: Middle East Peace Process: Conclusions adopted.
  41. ↑ EU takes tougher stance on Israeli settlements (The Guardian, July 16, 2013)
  42. ↑ Yarden Skop, 'Amid outrage over EU guidelines: Israel already signed deal with U.S. that limits funding to inside 1967 borders,' at Haaretz Aug. 14 2013.The agreement creating the United States-Israel Binational Science Foundation, the main organization for scientific cooperation between the U.S. and Israel, stipulates that projects financed under the arrangement’ may not be conducted in geographic areas which came under the administration of the Government of Israel after June 5, 1967 and may not relate to subjects primarily pertinent to such areas.’ The foundation has awarded about 4,000 scientists with grants amounting to roughly $500 million since its inception and, according to Haaretz, the foundation’ has never veered from the guideline’.
  43. ↑ Haaretz 16 July 2013 "EU: Future agreements with Israel won't apply to territories".
  44. ↑ Jerusalem Post, quoting Reuters, "EU 'concerned' by Israeli restrictions on its activities in West Bank"2013-07-27
  45. ↑
  46. ↑ Ahlswede (2009),online version p. 266
  47. ↑ Ahlswede (2009), version pp. 216–217
  48. ↑ Roni Sofer (2010-02-01). "Berlusconi says wants to see Israel in EU". Ynet. Retrieved 2012-03-11.
  49. ↑ Solana: EU has closer ties to Israel than potential member Croatia (Haaretz, 21.10.2009)
  50. ↑ "Israel in the EU and NATO? It’s not so crazy, says former Bulgarian FM". 8 July 2012.
  51. ↑ "Former Spanish PM Aznar: Israel Needed by European Union, Should be Accepted as Member State". 7 February 2014.