Hot Links

Become a TPP

Bureau of Industry & Security

Bureau of Census

China Business Center

Export Admin. Regulations

Find HS Numbers

Importing

Int'l Trade Guides

Int'l Business Planning
Market of the Month

MDEC Membership

MDEC Members Only
Michigan Exports

Michigan Export Services

TPP Only

USDOC Int'l Trade Admin.

WebGuides

What's new

Free Counseling
It doesn't matter whether it's as close as Windsor or as far as Hong Kong or Zimbabwe, the Michigan District Export Council has someone who's been there and done that.  We encourage you to give us a try.

Israel

Introduction: Why Israel?

It might seem difficult at first to separate Israel from its political issues. When many people think of Israel, the Israeli-Palestinian crisis and the media accounts of violence come to mind. However, Israel is a technologically advanced market economy with a highly skilled and well-educated workforce. Cultural life is vibrant, restaurants and beaches are crowded, and there is a lot of business being conducted. The United States is Israel's largest trading partner, and there are opportunities here for U.S. exporters. A recognized leader in high-tech industries, Israel's investment in research and development is higher than any single OECD country. In fact, after the United States and Canada Israel has the most companies listed on the NASDAQ.

Israel's population of 6.7 million lives in an area roughly the size of New Jersey. The business environment and style here will seem familiar to American businesses, but personal relationships can play a relatively larger role within Israel's tight-knit population than in the United States. Israel's per capita income is 75% of the average in OECD nations, and remained strong through the recent economic slowdown.

Top

Economic Overview

Israel and the United States are close allies and rely heavily upon one another for two-way trade. Israel's commercial relationship with the United States has developed rapidly since the signing of the Israel Free Trade Area Agreement (FTAA) in 1985. Nearly all tariffs on trade between the two countries have been eliminated in the past decade. The influx of Jewish immigrants from the former USSR during 1989-99, coupled with the opening of new markets at the end of the Cold War, energized Israel's economy. Growth was a strong 7.2% in 2000, but the bitter Israeli-Palestinian conflict, difficulties in the high-technology, construction and tourist sectors, and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. Although GDP was flat in 2003, the economy has begun to grow again in 2004.

Hi-tech and defense industries dominate Israel's imports, and Israel remains a global center for hi-tech design and R&D. In 2003, the government adopted an economic plan that involves investment in infrastructure amounting to about $2.5 billion over the next five years. This plan will provide multiple opportunities for U.S. architectural, engineering and construction firms and investors.

Israel depends on imports of crude oil, grains, raw materials, and military equipment. Despite its limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Cut diamonds, high-tech equipment and engineering services, and agricultural products (fruits and vegetables) are Israel's leading exports.

Top

Israel at a Glance:

Top

Best Prospects for U.S. Exports:

Israel has emerged as one of the world's premier centers for high-tech design, research and development, with particular strength in semiconductors, computer software, telecommunications and biotechnology. American companies have invested billions of dollars in Israeli high-tech firms over the past few years.

Between 2003-2006, the Israel Electric Company plans to invest over $5 billion in capital expenditures for the electricity sector. Proposed infrastructure and electricity projects include roads, ports, public transportation, electric power stations, telecommunications, desalination and rail upgrade (including the building of new lines and the electrification of the entire network).

For more information on these sectors, please see our U.S. Commercial Service Israel Website

Top

Imports and Exports:

Primary Imports (in thousands)

Primary Exports (in thousands)

Source: Israel Central Bureau of Statistics and US Dept. of Commerce National Trade Data

Top

Michigan Exports to Israel

Ask us for more detailed statistics.

Top

Doing Business in Israel

Partnering with a good local representative with contacts in the industry, proven reliability, loyalty and technical suitability is a key factor to success in selling and maintaining a continued presence in the Israeli marketplace. 

The U.S. Commercial Service in Israel (CS Israel), with offices in Tel Aviv and Jerusalem, can help you navigate the Israeli market and determine if your product or service is the right fit, as well as introduce you to qualified buyers and partners.

Joint ventures are also one of the most popular methods of cooperation for Israeli firms, especially in technology-related industries. The most common approach used by exporters of equipment and consumer goods is to obtain a local importer/distributor. For much more information about doing business in Israel, please see the American Embassy's Country Commercial Guide.

Top

Trade Promotion Activities and Events

Access numerous regional markets simultaneously through the Access Eastern Mediterranean (AEM) program. At the moment, the six markets are Egypt, Israel, Jordan, Lebanon, Turkey and West Bank/Gaza, although we are currently planning next year's activities and additional countries in the region may join the program. When you participate in the AEM program, we promote your products/services via a unique set of activities:

1. You register just once to explore opportunities in all six markets!
2. Commercial Specialists promote your products to hundreds of local contacts
3. Your products/services are featured on our AEM website
4. Some events include catalog show booths at local industry trades shows
5. We identify potential business partners for you and vet their interest, and you receive one combined Results Report covering all markets

Schedule of Upcoming Eastern Med Events:

- Educational Services (studying in the USA):October 2004 and June 2005
- Telecommunications Equipment and Services: November 2004
- Healthcare/Medical Equipment and Services: February 2005
- Automotive Aftermarket Products and Equipment: April 2005
- Safety and Security Equipment and Services: June 2005

Learn more about this program!

Top

Upcoming Trade Events in Israel

Study USA Week with Egypt (including Embassy Catalog Show)
October 13 - 18, 2004

Telecom Israel 2004 (including Embassy Catalog Show)
November 8 - 11, 2004
www.telecom-israel.com

Israfood 2004 (including Embassy Catalog Show)
November 22 - 24, 2004
www.stier.co.il

Israchem 2005 (including Embassy Catalog Show)
February 1 - 3, 2005
www.stier.co.il

Analiza 2005 (including Embassy Catalog Show)
February 1 - 3, 2005
www.stier.co.il

High Technologies 2005 (including Embassy Catalog Show)
March 24 - 25, 2005
www.elec2005.co.il

Building 2005 (including Embassy Catalog Show)
April 4 - 7, 2005

Security Israel 2005 (including Embassy Catalog Show)
June, 2005
www.securityisrael.com

Top

CS Israel Assistance Leads to Export Success

The U.S. Commercial Service in Israel helped U.S. firms record $167 million of export success in 2003. A short survey of some of these successes and highlights is available at:
http://www.buyusa.gov/israel/en/success.html Here is just one example:

UltraLife Batteries, Inc. (UltraLife), headquartered in Newark, NY, has been an active client of the Rochester Export Assistance Center for more than fifteen years and is a manufacturer of lithium batteries primarily used in the cellular, mobile, and military markets. UltraLife has used many of the programs and services of the Commercial Service, including the Gold Key Service, International Partner Search, market research, export counseling, and more.

UltraLife used these services to research many different markets, including Israel, Japan and Australia. With the aid of a CS Israel-provided International Partner Search service last year, Ultralife appointed a representative for the Israeli market and signed other two distributors.

The company made an initial $10,000 export sale from this deal. Ultralife's VP for Sales and Marketing wrote, "I want to take this opportunity to express my great appreciation for an excellent job of developing agent/distributor contacts and profiles for Ultralife Batteries. From this start, we have moved Israel to a high priority for business development."

Top

Contact us:

The U.S. Commercial Service in Tel Aviv and Jerusalem provides assistance to U.S. firms interested in doing business in Israel (from Tel Aviv) and the West Bank and Gaza (from Jerusalem). Our Jerusalem office also covers the Israeli Arab market. Our Commercial Service professionals help American companies export successfully by providing professional trade promotion, consultation, market research, and customized contact services.

Michael Richardson
Senior Commercial Officer
http://www.buyusa.gov/israel

U.S. Commercial Service Tel Aviv
Embassy of the United States of America
71 Hayarkon Street
Tel Aviv 63903
tel: 972-3-519-7327 fax: 972-3-510-7215
Email: tel.aviv.office.box@mail.doc.gov 

U.S. Commercial Service Jerusalem
19 Keren Hayesod Street
Jerusalem, Israel 91008
tel: 972-2-625-5201 fax: 972-2-623-5132
Email: jerusalem.office.box@mail.doc.gov

Top

More Information

Readers of ExportMichigan are also encouraged to review the following:

Israel WebGuide

Top

Date Updated: March 27, 2007