This paper focuses on the consequences of the implementation of a bilateral agreement between Israel and Thailand for migrant workers in the agricultural sector. Its purpose is to shed light on the key mechanisms of the transition from the marketization to demarketization of recruiting migrant workers, and to show how this transition affects the forms of labor recruitment and its consequences for the labor migrants. The study is based on three face-to-face surveys conducted among 180 agricultural workers from Thailand. Fifty-five were surveyed in 2011 before the implementation of the bilateral agreement, and 125 were interviewed after the agreement was implemented. Relying on a “before” and “after design, we first highlight the ways in which the private recruitment industry operated in Israel in the context of a state-sponsored temporary labor migration program, identifying the actors involved in the process and explaining how they profited from the labor recruitment. Second, we shed light on the importance of bilateral agreements in eliminating illicit practices for recruiting foreign workers in Israel and its practical consequences for the Thai migrants arriving under the new arrangement. We discuss our findings in light of the theories presented in the paper.