In today`s global economy, free trade agreements can have a significant impact on countries and their citizens. One such agreement that has been receiving increasing attention is the Israel-US Free Trade Agreement (FTA).
Signed back in 1985, the Israel-US FTA was the first such agreement that the US signed with any country in the Middle East, and it has been a cornerstone of the two countries` economic relationship ever since. The FTA provides for the gradual elimination of tariffs and other trade barriers between Israel and the US, making it easier and cheaper for businesses to trade goods and services across borders.
So, what are some of the benefits of the Israel-US FTA? First of all, it has helped to increase trade between the two countries. In 2019, the US exported over $19 billion worth of goods and services to Israel, and imported over $32 billion in return. This has created jobs and economic growth on both sides of the Atlantic.
In addition, the FTA has helped to promote investment between the two countries. Israel has become a hub for technology startups in recent years, and many US investors have taken notice. As a result, many US companies have opened offices and established partnerships with Israeli firms, leading to innovation and collaboration in fields such as cybersecurity, biotech, and renewable energy.
The Israel-US FTA has also helped to strengthen the geopolitical relationship between the two countries. As one of the US`s closest allies in the Middle East, Israel has played an important role in promoting stability and security in the region. The FTA has helped to deepen this partnership by increasing economic and commercial ties between the two countries.
However, like any trade agreement, the Israel-US FTA is not without its critics. Some argue that it has led to the displacement of US workers and the outsourcing of jobs to Israel. Others contend that the FTA has allowed Israel to continue its occupation of Palestinian territories, and that the US should be using its economic leverage to promote a just resolution to the Israel-Palestine conflict.
Despite these concerns, the Israel-US Free Trade Agreement remains an important pillar of the two countries` economic relationship. As the global economy continues to evolve, it will be important for both sides to continue to work together to ensure that the FTA benefits all of their citizens, as well as promoting peace and stability in the Middle East.