U.S. and Israel to main-tain certain importrestrictions, suchas quantitatie re-strictions and ees,other than customsduties, on agricul-tural products basedon agricultural policyconsiderations. Nonethe-less, oer 90% o U.S. agriculturalexports by alue enter Israel duty ree. To qualiy or preerential treatment under the FTA,manuactured goods must be (1) grown, produced,or manuactured entirely in the U.S. or Israel or (2)substantially transormed in the U.S. or Israel andcontain at least 35% U.S./Israeli content. To meet the35% content requirement, up to 15% o the product’s
Between 1984and 1996 bilateral tradein goods nearly tripled, reach-ing $12.4 billion. Between 1996and 2010, it nearly tripled again, reaching $32.3billion.
alue may originate in the other country so longas the input complies with the FTA’s rules o origin.Goods must also be shipped directly rom one coun-try to the other. The FTA, despite being oer twenty-e years oldand only twenty pages long, proides a stable busi-ness enironment and a exible platorm to urtherenhance the commercial relationship. The FTA estab-lished a bilateral Joint Committee (JC) in order to pro-ide a structure or discussing the enhancement o trade and issues o mutual concern. The JC meets an-nually and is headed by USTR and the Foreign TradeAdministration o Israel’s Ministry o Industry, Trade,and Labor. The JC’s broad mandate has proided theorum to urther liberalize trade in agricultural prod-ucts and establish cooperation on standardization.
A PlATFORM FORRegIOnAl ecOnOMIc cOOPeRATIOn
Th FTA was am i 1996 to sr asth patorm or th Quaiyi IustriaZo (QIZ) iitiati whih sks to our-a rioa oomi itratio a pro-mot prosprity a stabiity i th Mieast. I ra, oy atoris i siatJoraia a eyptia QIZs that mt thmiimum Israi iput rquirmt may x-port uty r to th U.S. throuh th QIZiitiati.Wh th frst QIZ was rat i Jorai 1998, Joraia xports to th U.S. wroy $16.4 miio. Withi 10 yars xportsrom th QIZs pak wh thy aoutor 65% o Jora’s $925 miio i xportsto th U.S.Wh th frst QIZ was stabish i eypti 2004, eyptia xports to th U.S. tota$1.3 biio. By 2010, eyptia xports toth U.S. rah $2.2 biio with QIZs a-outi or 43% o it.
Percentage o U.S. Exports to Israelby Industry in 2010
Fresh and Processed FoodsChemicals and PharmaceuticalProductsPlasticsStones, Glass, and MetalProducts Telecom and ElectronicProducts Transport EquipmentOthersMedical Deices
Percentage o U.S. Imports rom Israelby Industry in 2010
Chemicals and Pharmaceutical ProductsPlastics Textiles, Apparel, and Cloth-ingStone, Glass, and MetalProducts Telecom and ElectronicProducts Transportation EquipmentOthersMedical Deices