Israel Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in israel, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Overview
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Top five reasons why U.S. companies should consider exporting to Israel:

  • U.S.-Israel Free Trade Agreement (FTA), signed in 1985. Nearly all non-agricultural trade tariffs have been eliminated;
  • The U.S. is Israel’s single largest trading partner. The Israeli market is highly receptive to U.S. products and services;
  • Israel is the second largest trading partner for the U.S. in the Middle East;
  • Despite regional geopolitical challenges, Israel has a stable, strong economy;
  • Israel has a thriving innovation ecosystem and is a global leader in the number of startups outside of Silicon Valley.

Since signing the FTA in 1985, U.S.-Israel trade has grown ten-fold. In 2022, exports of U.S. goods and services combined to Israel were $20.8 billion, compared to $18.2 billion in 2021. In 2022, U.S. merchandise exports to Israel totaled $14.2 billion, an 11% increase over that figure in 2021. Principal categories of U.S. merchandise exports to Israel in 2022 were: 

  • Miscellaneous Manufactures (29.5%);
  • Computer & Electronic Products (21%);
  • Transportation Equipment (10.7%);
  • Chemicals (9.5%); and
  • Machinery, Except Electrical (7%)

In 2022, U.S. imports of goods and services from Israel were $30.8 billion, up 16.6% from 2021. In 2022, U.S. imports of merchandise from Israel totaled $21.5 billion, a 16% increase over that figure in 2021. Principal categories of merchandise imports from Israel to the United States in 2022 were:

  • Miscellaneous Manufactured Commodities (35.8%);
  • Computer & Electronic Products (20.6%)
  • Chemicals (12.5%); and
  • Machinery, Except Electrical (6.9%)

According to the International Monetary Fund, Israel’s 2022 real Gross Domestic Product (GDP) increased by 6.5% over 2021. GDP per Capita measured at Purchasing Power Parity (PPP) increased from $44,052 in 2021 to $49,507 in 2022 and Israel’s 2022 inflation rate increased to 4.4% from 1.5% in 2021. Israel’s 2022 unemployment rate was 3.8%, compared to 4.96% in 2021. In 2021, Foreign Direct Investment (FDI) in the United States by Israel totaled $27.7 billion, and U.S. FDI in Israel totaled $41.3 billion.

Political Environment

Visit State Department’s website for background on the country’s political and economic environment.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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