Regulatory heterogeneity between Israel and its key trading partners restricts the potential for bilateral trade. Approximation of the European Union’s regulatory standards would contribute to increased trade and investment. Upgrading Israel’s 1995 trade agreement with the EU could provide the optimal response to the regulatory heterogeneity and improve mutual access to markets for services.
*Marc Luban works for the Finance Ministry’s Chief Economist. He is responsible for ties with the OECD, the IMF and the EU