The Start of the Alliance
Israel is an independent nation found on the southwestern portion of Asia. Before it actually gained its independence in 1948, it went through tough times. Immediately after it had its freedom, the resources were scarce and rationing was imposed. Economic growth was a bit lagging behind until the 1950s when overseas capital became readily available for investment. From the said period to 1973 the Gross National Product (GNP) grew by 10% yearly. After 1973, the growth decreased sharply due to several reasons. Inflation, currency devaluations and the world oil crisis all contributed to the downfall. Military expenditures were also seen as one of the causes. In the mid-1980's, Israel faced a huge foreign debt and a severe deficit in its balance-of-payments. This led the government to introducing economic austerity measures. Tel Aviv and Haifa are two of the country's principal manufacturing centers although industrial facilities are well-distributed throughout the nation. Major industries include food processing, textile manufacturing, chemicals, fertilizers, machinery, armaments, electrical goods, precision equipment and electronics. The export-oriented industry focuses on diamond cutting and polishing. Since 1948, cultivated and irrigated land increased. This was due to the creation of new communal and collective settlements. Expansion of poultry and dairy farming as well as increased output of citrus, grapes, cotton, olives, vegetables and flowers contributed to the economy's progress. Important export items along this category include Jaffa oranges and vegetables. In the Israel trade balance, imports usually exceed exports thus a deficit is seen. To make up for the negative results of trade, foreign investment, tourism and financial aid are well promoted by the government. In fact, Israel is one of the nations which enjoy trading privileges in the European Economic Community (EEC) and with the United States. Adding to the flourishing trade relations between the US and Israel is the former's commitment to the security of the latter. When Israel was founded in 1948, US played support to the changes it had to adapt especially that it was still starting to make a name for itself in world trade. These two countries have strengthened their historical and cultural ties through the years. Another major role portrayed by the US was seen in the peacemaking procedures between Arabs and Israelis. Also in the record is the increased trade relation between the two nations. Technology efforts and bilateral science as well as the US-Israeli Educational Foundation and the Joint Counterterrorism Group contribute to a prospering friendship. Major Exports and Imports Between the Two Nations The primary commodities exported by Israel to other nations in the world include machinery and equipment, cut diamonds, agricultural products, software, chemicals, textiles and apparels while its primary imports are comprised of raw materials, military equipment, rough diamonds, fuels, consumer and investment goods and grain. Its major export partners are US, Belgium and Hong Kong. Israel's major suppliers are US, Belgium, Germany, the United Kingdom, Switzerland and China. The US Census Bureau recorded total US exports to Israel for the ten-month period ending October 2008 at $12.43 billion. The imports of the former from the latter amounted to $19.19 billion for the said time frame. The same American agency gathered the following trade product data for 2007:
Since Israel and the US committed to have a prosperous trading relationship, they have also signed several trade agreements. The pacts made provided more room for improvement as well as more efforts to do business. Here are the significant treaties that the government of both nations entered into:
Though guided with several treaties with a free trade agreement included, several issues contributed to disputes between these two nations. The list of barriers included a 1996 report on the malpractices when it comes to importing pistachio nuts. The US had pledged and provided evidences on the illegal importation of Israel of the said commodity from Iran. Another party contributory to the allegations was the European Union. Under this war on this product, US accused the importation department of Israel of being inefficient for not being able to detect illegal interference by Iran on pistachio nuts. The Israeli laws and standards specify restriction of any imports coming from Iran. Thus, in fact and in paper, Israel broke national law leading to great effects on US interests over the commodities of Israel. Future Trade Opportunities Between The Two Nations The above case was solved after Israel adapted measures suggested by the US. Israel apologized for not being able to detect the imports coming from Iran. Since most of the pistachio nuts imported by the country come from Europe, it was difficult to tell which one comes from Iran. The Israelis welcome suggestions of US on the detection of the imports through visual, volume and chemical identification. Much had been said about this problem. Since the dispute came to the better end of both countries, it is more desirable to look at more trade opportunities between the two nations. To begin with, trade fairs are oftentimes conducted by Israel. This is a good venue for the US to see which among the products of the Asian nation are competitive enough in the market. Investment opportunities in Israel are also handful hence all countries in global trade are enticed to join. Accessing the list of these opportunities is made possible by www.israelemb.org. In the same site, you may also access some of the vital industries of Israel including banks and other financial institutions, research and development, association of software houses, science and technology, and industry associations. US-Israel Trade References
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Note: Trade statistics, industry links, economic projections and global business resources on this page have been compiled from hundreds of trade related websites, government guides and resources on the Internet. We provide this valuable information for industrial suppliers, manufacturers, exporters and importers seeking to enter or expland business opportunities in Israel.
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Industrial Outlook
Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past
20 years, with a technologically advanced market economy. Major industries include high-technology projects (including aviation, communications, computer-aided design and manufactures, medical electronics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, and
diamond cutting.
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