Canada-Israel Chamber of Commerce was relaunched in Ottawa last week, in view of growing bilateral trade. Although the Tel Aviv-based Israel-Canada Chamber of Commerce and Industry, headed by president Yehuda Raveh, has been operating for many years, the corresponding Canada-Israel Chamber of Commerce withered during the late 1980s, and attempts to revive it during the 1990s failed.
The Canada-Israel Free Trade Agreement (CIFTA), signed in 1996, has begun to bear fruit in recent years. Bilateral trade reached C$800 million in 2005 and will reach C$1 billion this year, on the basis of first quarter figures. (The US dollar-Canadian dollar exchange rate is currently C$1.07-$1).
The relaunched Canada-Israel Chamber of Commerce will be based on Toronto, Canada’s commercial capital. Embassy of Israel in Ottawa deputy head of mission Ronen Gil-Or told “Globes’ that the Canada-Israel Chamber of Commerce would try to highlight business opportunities between the two countries, and create new opportunities. The Canada-Israel Chamber of Commerce will use the models of some of Canada’s top companies, such as Aecon Group (TSX: ARE), Bombardier (TSX: BBD), and Nortel Networks Inc. (NYSE; TSX: NT), which operate successfully in Israel. At the same time, Israeli companies such as Amdocs Ltd. (NYSE: DOX) and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) have large footholds in Canada.
Israel has a trade surplus with Canada. Israeli exports to Canada, mostly high-tech products, machinery and polished diamonds, totaled C$505 million in 2005. Israeli imports from Canada, mostly transport equipment and chemical products, totaled C$300 million.
In addition to CIFTA, Israel-Canada trade relations benefit from the Canada-Israel Industrial Research and Development Foundation (CIIRDF), in which each country invests $1 million a year. The CIIRDF has invested in 35 joint projects to date.
Gil-Or said Israel was now trying to expand commercial ties with Canada’s provinces, in a way resembling Israeli ties with various US states. In 2005, then-Minister of Industry, Trade and Labor Ehud Olmert signed an R&D agreement with Ontario. Israel is now emphasizing ties with Alberta, whose economy is booming.
Published by Globes [online], Israel business news - www.globes.co.il - on June 4, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006