Since Israel and the United States signed a mutual Free Trade Area (FTA) agreement on September 1, 1985, there has been “an impressive boost” in Israel’s exports to the United States, according to a high-ranking Israeli representative here.
“We are very encouraged by the rise in Israeli exports to the U.S. in the last year,” David Litvak, Israel’s newly appointed Trade Commissioner to the U.S., said in an interview with the Jewish Telegraphic Agency.
“As a result of the FTA agreement, Israel has markedly increased its exports to the U.S., particularly in textiles and processed food products,” Litvak noted. He pointed out that despite the devaluation of the dollar compared with the major European currencies, Israel’s exports to America retained the monetary level of the previous year.
“In 1985, Israel exported to the U.S. goods and services in the sum of $2.2 billion. For 1986, the total sum of Israel’s exports to the U.S. will be about the same, despite the fact that we exported more goods to the U.S. The reason is the fact that the dollar was devalued by more than a third in the last 12 months in relation to the European currencies,” Litvak explained.
The major items exported to the U.S. from Israel are diamonds, machinery, metal products, electronics, textiles, processed food and agriculture products, Litvak noted. Diamonds are so far the largest item on the Israeli export list, amounting to a third of the exports of the Jewish State to America.
TRIPLING OF ISRAELI EXPORTS BY 1995 SEEN
Noting that Israel exports more to the U.S. than to the European Economic Community (EEC), Litvak said that by 1995, when the FTA agreement will mature and all tariffs and customs taxes on Israeli exports to the U.S. will be abolished, the Israeli exports to the U.S. will probably triple and reach the estimated sum of $7 billion. Presently, Israel’s total exports globally are about $6 billion a year.
The FTA agreement also opened the Israeli market to American imports, Litvak pointed out. He said that last year Israel imported goods from the U.S. in the sum of $1.7 billion. “For 1986, we expect a slight increase in the imports of American goods to Israel,” he said, adding that Israel imports from the U.S. mostly machinery and electrical equipment, worth about $600 million a year, and grains in the amount of $325 million a year. In addition, Israel imports various equipment for its defense, he said.
The 37-year-old Litvak will be coordinating export and trade activities from the Israel Trade Center headquarters in New York and will oversee the activities of the Israel Trade Center regional offices in Chicago, Los Angeles, Houston and Philadelphia.
“The FTA agreement is a key factor in the increasing development of trade between the U.S. and Israel, offering long-term benefits to both nations. For Israel, it enables her to boost her exports and thus reduce her dependence on foreign aid,” Litvak asserted. “For the U.S. it provides a duty-free gateway to Europe, by virtue of Israel’s tariff-free pact with the EEC.”
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
