Trade between Sweden and Israel is since 1995 undertaken within the framework of the European Union Association Agreement between the European Union and Israel.
The main features of the agreement include regular political dialogue, provisions on freedom of establishment and liberalization of services, the free movement of capital and competition rules, the strenghtening of economic co-operation on the widest possible basis and co-operation on small matters, supplemented by cultural co-operation. The Agreement reinforces the arrangements for free trade in industrial products which have been in force since the late 1970s.