As the world`s oldest democracies and strong allies, the United States and Israel have a vital economic relationship dating back to 1948. This relationship has recently been strengthened by a new trade agreement between the two nations. The US-Israel Free Trade Agreement (FTA) was signed in 1985 and has been expanded over the years to include more sectors. The FTA has enabled free trade between the two countries, improving the flow of goods and services, and ultimately benefiting both nations.
The US-Israel trade agreement is unique in many ways. It is one of America`s oldest free trade agreements, and it is the only US agreement with a Middle Eastern nation. The FTA has removed all tariffs on goods traded between the two nations, creating a more stable and profitable trade environment. Additionally, the agreement provides American exporters with unique benefits such as Israeli customs officials meeting them at their warehouses in Israel to clear their goods.
The US-Israel trade agreement has proved to be a significant benefit to the US economy. In 2020, the US exported over $20 billion in goods to Israel, making Israel America`s 20th-largest export partner. Some of the most significant US export categories to Israel are defense and security equipment, agriculture products, raw materials, and electronics. This agreement has created many American jobs, and several states heavily rely on exports to Israel, such as California, Texas, and New York.
Israel has also benefitted significantly from the US-Israel trade agreement. In 2020, Israel exported over $15 billion in goods to the US, making the US Israel`s second-largest export partner. Some of the most significant Israel export categories to the US are diamonds, pharmaceuticals, technology, and chemicals. This agreement has created many Israeli jobs, and many Israeli companies have moved their operations to the US to take advantage of this agreement.
The US-Israel trade agreement has also helped to strengthen the relationship between the two nations. This agreement has created a stronger economic partnership that has led to a more robust political alliance. Both nations recognize the strategic importance of working together on issues of mutual concern, such as national security, energy security, and regional stability.
In conclusion, the US-Israel trade agreement is a vital component of the economic relationship between the two nations. The agreement has created a more stable trade environment, eliminated tariffs on goods traded between the two nations, and provided unique benefits to American exporters. The FTA has created jobs and helped to strengthen the political alliance between the two nations. Overall, the US-Israel trade agreement has been a win-win situation for both the US and Israel.