On July 31, 1996, Israel and Canada signed a Free Trade Agreement in Toronto. This Agreement, which is the culmination of two years of negotiations, will — upon its forthcoming entry into force — set the framework for future trade between Israel and Canada. This is a significant step for Israel's trade: Canada's population, as of 1995, was 28.9 million; it is the seventh largest world market: in 1994, its export was $164.3 billion F.O.B. and its import was $151.5 billion C.I.F. The Canadian trade relies heavily on the United States, and a Free Trade Agreement is in force between the two since 1989.Israel import from Canada totaled $216 million in 1995, most of which included sales of machinery and parts, aluminum, paper and paperboard, electrical equipment and parts, pulp of wood, cereals, sulphur and asbestos, optical measuring and checking equipment, wood and man-made staple fibers. That year, Israel export to Canada was $240.8 million, consisting mainly of diamonds, mechanical and electrical machinery and equipment. Like Canada, Israel has a free trade agreement with the United States. Since 1975, Israel has also had a free trade agreement with the European Community, which is, as of January 1,1996, replaced by the recently signed Association Agreement with the European Communities.
