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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 $49.6 billion in 2018. Exports were $19.8 billion; imports were $29.8 billion. The U.S. goods and services trade deficit with Israel was $10.1 billion in 2018.

Israel is currently our 23rd largest goods trading partner with $35.5 billion in total (two way) goods trade during 2018. Goods exports totaled $13.7 billion; goods imports totaled $21.8 billion. The U.S. goods trade deficit with Israel was $8.1 billion in 2018.

Trade in services with Israel (exports and imports) totaled an estimated $14.1 billion in 2018. Services exports were $6.1 billion; services imports were $8.1 billion. The U.S. services trade deficit with Israel was $2.0 billion in 2018.

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' 22nd largest goods export market in 2018.
     
  • U.S. goods exports to Israel in 2018 were $13.7 billion, up 9.2% ($1.2 billion) from 2017 but down 5.4% from 2008. U.S. exports to Israel are up 507% from 1985 (pre-FTA).
     
  • The top export categories (2-digit HS) in 2018 were: precious metal and stone (diamonds) ($4.9 billion), aircraft ($1.8 billion), machinery ($1.5 billion), electrical machinery ($1.1 billion), and optical and medical instruments ($670 million).
     
  • U.S. total exports of agricultural products to Israel totaled $677 million in 2018. Leading domestic export categories include: corn ($137 million), tree nuts ($121 million), distillers grains ($56 million), other feeds & fodders ($50 million), and soybeans ($41 million).
     
  • U.S. exports of services to Israel were an estimated $6.1 billion in 2018, 4.4% ($258 million) more than 2017, and 70.9% greater than 2008 levels. Leading services exports from the U.S. to Israel were in the travel, transport, and intellectual property (industrial processes) sectors.

Imports

  • Israel was the United States' 21st largest supplier of goods imports in 2018.
     
  • U.S. goods imports from Israel totaled $21.8 billion in 2018, down 0.8% ($174 million) from 2017, and down 2.5% from 2008. U.S. imports from Israel are up 972% from 1985 (pre-FTA).
     
  • The top import categories (2-digit HS) in 2018 were: precious metal and stone (diamonds) ($7.8 billion), pharmaceuticals ($3.5 billion), optical and medical instruments ($1.8 billion), special other (returns) ($1.4 billion), and electrical machinery ($1.4 billion).
     
  • U.S. total imports of agricultural products from Israel totaled $379 million in 2018. Leading categories include: snack foods ($66 million), processed fruit & vegetables ($38 million), tree nuts ($30 million), wine and beer ($29 million), and planting seeds ($26 million).
     
  • U.S. imports of services from Israel were an estimated $8.1 billion in 2018, 7.7% ($577 million) more than 2017, and 83.1% greater than 2008 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 $8.1 billion in 2018, a 14.2% decrease ($1.3 billion) over 2017.
     
  • The United States has a services trade deficit of an estimated $2.0 billion with Israel in 2018, up 19.0% from 2017.

Investment

  • U.S. foreign direct investment (FDI) in Israel (stock) was $27.1 billion in 2018, a 1.8% increase from 2017. 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 $13.6 billion in 2018, up 13.9% from 2017. Israel's direct investment in the U.S. is led by manufacturing, depository institutions, and real estate.
     
  • Sales of services in Israel by majority U.S.-owned affiliates were $4.3 billion in 2016 (latest data available), while sales of services in the United States by majority Israel-owned firms were $2.6 billion.