Israel - Country Commercial Guide
Market Overview
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Top five reasons why U.S. companies should consider exporting to Israel:

  • U.S.-Israel Free Trade Agreement (FTA), signed in 1985. Nearly all non-agricultural trade tariffs have been eliminated;
  • The U.S. is Israel’s single largest trading partner. The Israeli market is highly receptive to U.S. products and services;
  • Israel is the second largest trading partner for the U.S. in the Middle East;
  • Despite regional geopolitical challenges, Israel has a stable, strong economy;
  • Israel has a thriving innovation ecosystem and is a global leader in the number of startups outside of Silicon Valley.

Since signing the FTA in 1985, U.S.-Israel trade has grown ten-fold. In 2022, exports of U.S. goods and services combined to Israel were $20.8 billion, compared to $18.2 billion in 2021. In 2022, U.S. merchandise exports to Israel totaled $14.2 billion, an 11% increase over that figure in 2021. Principal categories of U.S. merchandise exports to Israel in 2022 were: 

  • Miscellaneous Manufactures (29.5%);
  • Computer & Electronic Products (21%);
  • Transportation Equipment (10.7%);
  • Chemicals (9.5%); and
  • Machinery, Except Electrical (7%)

In 2022, U.S. imports of goods and services from Israel were $30.8 billion, up 16.6% from 2021. In 2022, U.S. imports of merchandise from Israel totaled $21.5 billion, a 16% increase over that figure in 2021. Principal categories of merchandise imports from Israel to the United States in 2022 were:

  • Miscellaneous Manufactured Commodities (35.8%);
  • Computer & Electronic Products (20.6%)
  • Chemicals (12.5%); and
  • Machinery, Except Electrical (6.9%)

According to the International Monetary Fund, Israel’s 2022 real Gross Domestic Product (GDP) increased by 6.5% over 2021. GDP per Capita measured at Purchasing Power Parity (PPP) increased from $44,052 in 2021 to $49,507 in 2022 and Israel’s 2022 inflation rate increased to 4.4% from 1.5% in 2021. Israel’s 2022 unemployment rate was 3.8%, compared to 4.96% in 2021. In 2021, Foreign Direct Investment (FDI) in the United States by Israel totaled $27.7 billion, and U.S. FDI in Israel totaled $41.3 billion.

Political Environment

Visit State Department’s website for background on the country’s political and economic environment.