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 sixfold. In 2021, exports of U.S. goods and services combined to Israel were $18.2 billion, compared to $14.5 billion in 2020. In 2021, U.S. merchandise exports to Israel totaled $12.8 billion, a 25% increase over that figure in 2020. Principal categories of U.S. merchandise exports to Israel in 2021 were: 

• Miscellaneous Manufactured Commodities (25.5%);
• Computer & Electronic Products (23.2%);
• Transportation Equipment (10.7%);
• Chemicals (8.6%); and
• Machinery, Except Electrical (7.6%)

In 2021, U.S.  Imports of goods and services from Israel were $26.9 billion, up 25.1% from 2020. In 2021, U.S. imports of merchandise from Israel totaled $18.6 billion, a 22% increase over that figure in 2020. Principal categories of U.S. merchandise imports from Israel in 2021 were:

• Miscellaneous Manufactured Commodities (33.9%);
• Computer & Electronic Products (18.7%)
• Chemicals (15%); and
• Machinery, Except Electrical (6.1%).

According to the International Monetary Fund, Israel’s 2021 Gross Domestic Product (GDP) real growth increased by 8.19% over 2020.  GDP Per Capita, Purchasing Power Parity (PPP), increased from $44,181 in 2020 to $51,416 in2021 and Israel’s 2021 inflation rate increased to 1.5% from -0.6% in 2020. Israel’s 2021 unemployment rate (% of labor force) was 3.9%, compared to 4.96% in 2020. In 2020, Foreign Direct Investment (FDI) in the United States by Israel totaled $29.1 billion, and U.S. FDI in Israel totaled $40.4 billion.

Political & Economic Environment:  

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

Direct link: https://www.state.gov/u-s-relations-with-israel/