^* [The Summary of U.S.-Israel Free Trade Area Agreement has been reproduced from the text provided by the Office of the United States Trade Representative. The text of the Agreement, the letters of understanding, and the declaration on trade in services have been inserted between Section II - “Overview of the Agreement” - and Section III -“Tariff Package”. These have been reproduced from the text provided by the U.S. Department of State. [The Agreement was negotiated under the terms of Title IV of the U.S. Trade and Tariff Act of 1984 at I.L.M. page 859, and it is the first free trade agreement entered into by the United States.[Implementing legislation in the form of H.R. 2268 was passed in May by both the U.S. House of Representatives and the Senate. It awaits the President's signature to become public law. Sections 102 and 151-154 of the Trade Act of 1974, under which this legislation was considered, appear at 14 I.L.M. 183 and 193 (1975).]

^* [See understandings at I.L.M. pages 676 and 677.]

^* [See exchange of letters at page 676.]

^* [Lists A, B, and C to Annex 1 have been omitted.]

^* [Lists A, B, and C to Annex 2 have been omitted.]

^* [The attachment containing specimens of certificates of origin for exports of the U.S. and exports of Israel, together with explanatory notes, has not been reproduced.]

^* [See understandings at I.L.M. page 678.]

^* 1“Certain primary products” shall be defined in accordance withfootnote 29 to Article 9 of the Subsidies Code.2“Level of subsidization” shall be defined, for the purposesof this letter , as the percentage point spread between the lendingrates for each program and the rates which the Government ofIsrael(or special institutions controlled by and/or acting underthe authority of the Government of Israel) actually has to payfor the funds so employed (or, if applicable, would have topay if it borrowed on international capital markets in orderto obtain funds of the same maturity and denominated in thesame currency as the program funds).

^* [There was no U.S. response to this letter.]

¹ For the purposes of this Declaration, commercial banking services are limited to tne activities of representative offices.

² For example, in the area of commercial banking, the concept of a commercial presence refers to the activities of representative offices, but not to agencies, branches or subsidiaries of commercial banks

^* Less than .01%

¹ Product staging by SIC (1982-Trade Values)