Please note this report was published before October 7, 2023. 

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.

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

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