The U.S.-Israel Free Trade Agreement (FTA) came into force in 1985 and is the first U.S. free trade agreement. It continues to serve as the basis for the expansion of trade and investment between the United States and Israel by removing barriers and promoting regulatory transparency. In 2017, exports of U.S. goods to Israel decreased by 4.9% compared to 2016, reaching $12.5 billion. Since 1985, when the U.S.-Israel Free Trade Agreement came into force, U.S. exports to Israel have increased by 456%, although the United States has experienced a bilateral deficit of $9.4 billion in 2017. The free trade agreement between the United States and Israel is obsolete by current standards because it has detailed obligations only for trade in goods, while recent free trade agreements contain detailed commitments in the areas of agriculture, services, investment, intellectual property protection, standards, transparency and the rule of law. The ESTV contains a non-binding Memorandum of Understanding to remove barriers to trade in services such as tourism, communications, banking, insurance, business advice, accounting, law, IT services and advertising. It also contains an agreement to remove all restrictions on public procurement and calls on Israel to relax its compensation requirements for government authorities other than the Israeli Ministry of Defence. Israel is currently our 24th largest trading partner for goods, with a total of $34.5 billion (two and also) goods in 2017. Exports of goods amounted to $12.6 billion; Imports of goods amounted to $21.9 billion. In 2017, the U.S.
trade deficit with Israel was $9.4 billion. Non-tariff barriers remain in the areas of intellectual property rights, technical standards and regulations, as well as the lack of transparency in government tendering procedures. In addition, tariff and non-tariff barriers continue to affect some of U.S. agricultural exports. As a result, the United States and Israel signed an Agricultural Trade Agreement (ATAP) in 1996 that established a gradual and steady liberalization of access to food and agricultural markets effective December 31, 2001. Negotiations and the implementation of an ATAP successor were completed in 2004. It came into effect on December 31, 2008 and was extended until December 31, 2010 and again until December 31, 2011. Israel FTA Text: The full text of the agreement. Israel continues to revise its standards regime to significantly increase the recognition of standards of internationally recognized standards bodies, including U.S. standards. The 2014 Israeli Law facilitated the importation into Israel of a wide range of U.S. products and adopted more than 30 international standards developed by the developing U.S.
standards. In 2017, the United States and Israel agreed to introduce new procedures that make it easier for exporters to obtain authorizations when claiming duty-free status under the free trade agreement for individual products. Israeli products are marketed duty-free in the United States. Some tariff positions can be tracked using the Ministry of Commerce`s tariff instrument. The Joint Committee between the United States and Israel (JC) is the central oversight body for the free trade agreement. At its last meeting in February 2016, the JC discussed possible new cooperation efforts to increase bilateral trade and bilateral investment. During the meeting, the United States and Israel noted progress in examining a number of regulatory and customs barriers specific to bilateral trade and agreed to continue to support existing dialogues on these issues. At the JC meeting in February 2016, Israel proposed to resume negotiations for a permanent agreement following the current agreement between the United States and Israel on the