A highlight of 2009 was the conclusion of an agricultural agreement between the EU and Israel. On 4 November 2009, the EC and Israel signed the new agreement on reciprocal liberalisation measures for agricultural products, processed agricultural products and fish and fisheries products. It came into force on January 1, 2010. Consultations are the fundamental mechanism for resolving disputes between the partners of the free trade agreement. The agreement implies that the parties strive to resolve any differences between them regarding the interpretation and implementation of the agreement, through direct consultations and, if necessary, consultations within the joint committee. In cases where consultations have not resulted in a satisfactory solution, the parties may return to arbitration (Article 25bis). Appendix VIII regulates the constitution and operation of the court. Key features of the EU-Israel Association Agreement include provisions on regular political dialogue, freedom of establishment and liberalisation of services, free movement of capital and competition rules, strengthening economic cooperation and cooperation on social issues. The agreement provides for the establishment of an association council assisted by an association committee. It also strengthens the rules on the free movement of industrial products in force since the late 1970s. The agreement also mentions many other areas of cooperation open to negotiations.
Products from Israeli settlements in the occupied Palestinian territories are not subject to the free trade agreement because they are not considered Israeli. The accumulation of origin means that a product can be processed from a partner country or can be added to a product from another partner country, but can nevertheless be considered a “product of origin” of that second partner country for the purpose of a specific trade agreement. In 2013, the EU adopted a binding directive which will require the Israeli government to declare, in future agreements with the EU, that settlements in the West Bank, including East Jerusalem, are located outside the State of Israel. The directive partly implements an earlier statement by EU foreign ministers  that “all agreements between the State of Israel and the EU must clearly and explicitly express their non-performance in the territories occupied by Israel in 1967.”  The guidelines prohibit the granting of EU grants, financing, prizes or scholarships to Israeli institutions, unless a transaction exclusion clause is included. Israeli institutions and institutions that are on the Green Line before 1967 will not be automatically eligible. The European directive is similar to the one signed in 1972 between the United States and Israel, in which Israel pledged, in exchange for scientific funds, to limit projects within the 1967 borders.  The guidelines do not restrict subsidies from EU Member States. Before the guidelines were published, Israel experienced a political and media storm.
 The media has suggested that Israel will act against the EU. Maja Kocijancic, spokeswoman for Catherine Ashton, the EU`s head of foreign policy, said: “The EU is concerned by reports in the Israeli media that the Israeli defence minister has announced a series of restrictions on EU activities to support the Palestinian people. We have not received any official notification from the Israeli authorities. Our delegations on the ground are trying to provide urgent clarification.  Author: Erwan Fouéré With the official ratification of the name resolution agreement by the Greek Parliament last Friday… Negotiations on the opening of additional agricultural trade between the EU and Israel were concluded in 2008 and the agreement has been in force since January 2010. THE EFTA states signed a free trade agreement with Israel on 17 September 1992 in Geneva, Switzerland.