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Israel

U.S.-Israel Trade Facts

FTA Entered into force September 1, 1985

U.S. goods and services trade with Israel totaled an estimated $47.1 billion in 2016 (latest data available). Exports were $18.3 billion; imports were $28.8 billion. The U.S. goods and services trade deficit with Israel was $10.5 billion in 2016.

Israel is currently our 24th largest goods trading partner with $34.5 billion in total (two way) goods trade during 2017. Goods exports totaled $12.6 billion; goods imports totaled $21.9 billion. The U.S. goods trade deficit with Israel was $9.4 billion in 2017.

Trade in services with Israel totaled an estimated $11.7 billion in 2016 (latest data available). Services exports totaled $5.1 billion; services imports totaled $6.6 billion. The U.S. services trade deficit with Israel was $1.4 billion in 2016.

According to the Department of Commerce, U.S. exports of Goods and Services to Israel supported an estimated 73 thousand jobs in 2015 (latest data available) (43 thousand supported by goods exports and 30 thousand supported by services exports).

Exports

  • Israel was the United States' 24th largest goods export market in 2017.

  • U.S. goods exports to Israel in 2017 were $12.6 billion, down 4.9% ($648 million) from 2016 and down 2.6% from 2007. U.S. exports to Israel are up 456% from 1985 (pre-FTA). 

  • The top export categories (2-digit HS) in 2017 were: precious metal and stone (diamonds) ($5.0 billion), machinery ($1.4 billion), aircraft ($1.2 billion), electrical machinery ($989 million), and optical and medical instruments ($643 million).

  • U.S. total exports of agricultural products to Israel totaled $545 million in 2017. Leading domestic export categories include: tree nuts ($128 million), soybean meal ($51 million), distillers grains ($41 million), feeds & fodders nesoi ($35 million), and soybeans ($29 million).

  • U.S. exports of services to Israel were an estimated $5.1 billion in 2016 6.2% ($298 million) more than 2015, and 75.3% greater than 2006 levels.  Leading services exports from the U.S. to Israel were in the travel, transport, and professional and management services sectors.

Imports

  • Israel was the United States' 18th largest supplier of goods imports in 2017.

  • U.S. goods imports from Israel totaled $21.9 billion in 2017, down 1.2% ($273 million) from 2016, but up 5.5% from 2007. U.S. imports from Israel are up 981% from 1985 (pre-FTA).

  • The top import categories (2-digit HS) in 2017 were: precious metal and stone (diamonds) ($7.4 billion), pharmaceuticals ($4.3 billion), electrical machinery ($1.7 billion), optical and medical instruments ($1.6 billion), and special other (returns) ($1.4 billion).

  • U.S. total imports of agricultural products from Israel totaled $372 million in 2017. Leading categories include: snack foods ($70 million), processed fruit & vegetables ($37 million), wine and beer ($30 million), planting seeds ($23 million), and tree nuts ($23 million).

  • U.S. imports of services from Israel were an estimated $6.6 billion in 2016, 6.6% ($408 million) more than 2015, and 71.7% greater than 2006 levels. Leading services imports from Israel to the U.S. were in the research and development, travel, and transport sectors.

Trade Balance

  • The U.S. goods trade deficit with Israel was $9.4 billion in 2017, a 4.2% increase ($375 million) over 2016.

  • The United States has a services trade deficit of an estimated $1.4 billion with Israel in 2016 (latest data available), down 11.9% from 2015.

Investment

  • U.S. foreign direct investment (FDI) in Israel (stock) was $26.7 billion in 2017, a 158.3% increase from 2016. U.S. direct investment in Israel is led by manufacturing, professional, scientific, and technical services, and information services.

  • Israel's FDI in the United States (stock) was $11.9 billion in 2017, down 2.8% from 2016. Israel's direct investment in the U.S. is led by manufacturing, depository institutions, and wholesale trade.

  • Sales of services in Israel by majority U.S.-owned affiliates were $4.2 billion in 2015 (latest data available), while sales of services in the United States by majority Israel-owned firms were $2.3 billion.