Trade Agreements between Us and Israel

Trade Agreements Between US and Israel: A Closer Look

The United States and Israel have a long-standing friendship that dates back to Israel`s formation as a modern state in 1948. The two countries have since shared strong economic, military, and cultural ties. The trade relationship between the two nations has been a crucial aspect of their bond. This article will explore the trade agreements between the US and Israel and how they have evolved over time.

The first formal trade agreement between the US and Israel was signed in 1985, known as the United States-Israel Free Trade Agreement (FTA). This agreement aimed to eliminate tariffs on goods traded between the two countries, increase market access, and promote economic growth. The FTA was the first comprehensive agreement of its kind for the US, and it set the stage for future trade deals.

Since the FTA, the US and Israel have signed several other agreements aimed at strengthening trade relations. One of the most notable agreements is the US-Israel Strategic Partnership Act, which was signed into law in 2014. This legislation established a high-level forum to promote cooperation on defense, energy, water, and other areas of mutual interest. It also expanded the scope of the FTA to cover additional sectors, such as services, intellectual property, and environmental goods.

The US and Israel have also collaborated on several initiatives to boost trade and investment. One example is the Binational Industrial Research and Development (BIRD) Foundation, which was established in 1977. The BIRD Foundation provides funding for joint research and development projects between US and Israeli companies in various fields, such as biotechnology, cybersecurity, and renewable energy. This program has helped to create innovative products and services, many of which have commercialized successfully in both countries and beyond.

Another initiative is the US-Israel Joint Economic Development Group (JEDG), which was established in 1985. The JEDG brings together government officials and business leaders from both countries to discuss trade and investment opportunities, identify barriers to trade, and develop strategies to enhance economic cooperation. The JEDG has played a crucial role in strengthening the US-Israel economic relationship over the years.

Despite the strong trade ties between the US and Israel, there have been some disputes over the years. One such issue is the labeling of products from Israeli settlements in the West Bank. In 2016, the US government issued guidelines requiring companies to label products made in Israeli settlements as such. Israel vehemently opposed this move, calling it discriminatory and politically motivated. The labeling issue highlights the complex political dynamics underlying the US-Israel trade relationship.

In conclusion, the trade relationship between the US and Israel has been robust and has evolved over time. The two countries have signed several agreements aimed at promoting economic growth and expanding market access. Initiatives like the BIRD Foundation and JEDG have helped to foster innovation and collaboration between US and Israeli companies. While there have been disagreements, the two nations` economic ties have remained strong, reflecting the unique and enduring bond between them.

Scroll to Top