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What Is The Impact Of Trade In Israel?

Decent Essays
Since the signing of the free trade agreement, trade has been dynamic and growing with respect to both exports and imports. In the long term, Israel is currently the United State’s 24th largest goods trading partner with $38 billion in total goods traded in the recent year 2014. When looking at exports alone in 2014, the total is $15 billion and the U.S. goods trade deficit with Israel was $8 billion in the same year. From the period of the signing, trade steadily grew. Between 1996 and 2010, bilateral trade in goods nearly tripled reaching $32.2 billion. The breakdown of trade results in 50% of bilateral economic exchanges are concentrated in trade in goods, 30% are investment, and 20% are in trade in services. The goods being…show more content…
As the rest of the world slowly became more connected and trade became more global by the end of the 20th/beginning of the 21st century, Israel was able to capitalize on this growth by becoming a part of the global trade trend. Theoretically, lowering tariffs makes trade more attractive to foreign countries and exposes the newly liberalized country to more competition. The shift of the economy to more of a service driven nation and the switch from manufacturing and agriculture to high tech and pharmaceuticals is also due to the globalization of the Israeli economy. The trend towards services and high-tech capital is a symptom of the modernization of the economy and that is how Israel came to be in such as favorable trade position to the rest of the world and specifically to the United States.
The imports of the United States from Israel look very similar to the exports of the United States to the developing economy of Israel. Major imports from Israel include chemicals and pharmaceutical products, plastics, textiles, apparel and clothing, stone, glass and metal products, telecommunications products, transportation equipment and medical devices. This similarity in imports and exports are due to the mutually maturing countries and the interconnectedness of the global market. Some statistics that describe the import relationship between Israel and the US include the fact that in 2013 Israel was the United
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