Israel Plans Exports Drive to U.s., Foreign Trade Director Reports

Israel will make intensive efforts to increase its exports to the United States, it was reported here by Michael Tsour, director of the Foreign Trade Department of Israel’s Ministry of Commerce and Industry. He addressed a luncheon of the American-Israel Chamber of Commerce.

Passing the first two stages of absorption of mass immigration and heavy capital investments, said Mr. Tsour, Israel has now entered the third stage, where investments in capital and manpower begin to bear fruit. This is affecting markedly Israel’s foreign trade. While in the first “stage” Israel was a heavy importer of consumer goods and in the second stage the emphasis shifted to capital goods, the emphasis is now shifting to raw martials and semi-manufactured goods, with other types of imports remaining stable.

“In order to balance Israel’s foreign trade,” waid Mr. Tsour, “Israel will have to increase its exports by some $300, 000, 000 for which it will have to increase its imports of raw materials and semi-manufactured goods by $150, 000, 000.”

Describing the rise and progress of exports from Israel, Mr. Tsour said that while in the past Israel’s exports were directed to countries with which she had trade and clearing agreements, the emphasis has been shifting to free markets. Alongside the doubling of exports between 1953 and 1956, a change in the direction of the exports has taken place, and while two years ago only 30 percent of Israel’s total exports were shipped to free-currency markets, their share of total exports rose to 70 percent at present.

Another important change has also taken place, the Israeli official said. The Sinai campaign has given Israel, for the first time, direct access to its “natural” markets in Africa and Asia through the port of Eilat. Previously, shipments from these countries to Israel and from Israel to them were effected in roundabout way and with heavy costs of transshipment. Now, regular shipping services to and from Eilat are functioning and improving. These will be supplemented by better internal transportation routes from Israel’s industrial and commercial centers to Eilat, thus enabling full utilization of Israel’s position as the only country besides Egypt linking the Mediterranean and the Red Sea and Indian Ocean.

The other target for Israel’s exports, said Mr. Tsour, is the United States. “We know,” he said, “that lack of experience in exporting to a highly competitive market, has been our chief impediment; and we know that we must adapt our products, our exports, and our sales organizations to the requirements of the American market. We are trying, for example, to solve some of the problems by encouraging the exporters to form export “pools” and groups, to form a specialized Export Houses and use joint brand names. “We do not want,” concluded Mr. Tsour, “to sell on sentiment alone. We went to sell on a business basis and develop a steady business; we hope we shall achieve that.”