The United States of America consumes almost 40% of Israel’s total export shipments, far more than second-place Belgium at 6.5% and third-place Hong Kong at 5.9%.
Israel’s imports are less concentrated, with products from trade partners distributed more proportionately. Leading exporters into Israel include the U.S. (12.4%), Belgium (8.2%), Germany (6.7%), Switzerland (5.9%), the United Kingdom (5.1%) and China (also 5.1%).
In 2007, Israel exported an estimated US$50.2 billion worth of goods onto the international trade marketplace. Israeli imports totalled roughly $55.8 billion, resulting in Israel’s overall $5.6-billion trade deficit last year.
Israeli Trade with U.S.
Despite its overall deficit, Israel enjoyed a US$7.8 billion trade surplus with its American trade partner in 2007. The most recent surplus statistic is 32.6% higher than the Israel-US surplus in 2003 but represents a 5% decrease from the $8.2 billion surplus in 2006.
Exports from Israel to U.S.
With a population of 7.1 million, Israel exported US$20.8 billion worth of merchandise to the United States in 2007, an 8.6% increase from 2006 and up by 63% in 4 years. The following product categories represent about 77% of Israeli exports to America.
- Gem diamonds … US$9.5 billion – up 10.5% from 2006 (45.6% of Israel-to-U.S. exports)
- Dental, medical and pharmaceutical preparations … $2.7 billion – up 3.5% (12.9%)
- Telecommunications equipment … $746.8 million – up 17.6% (3.6%)
- Complete civilian aircraft … $685.9 million – up 41.6% (3.3%)
- Other hospital, medical and scientific equipment … $655 million – up 12.6% (3.1%)
- Electric apparatus and parts … $385.6 billion – up 11.3% (1.9%)
- Civilian aircraft engines … $370.5 million – up 52.6% (1.8%)
- Measuring, testing and control instruments … $337.1 million – down 9.8% (1.6%)
- Other military equipment … $271.3 million – up 223.2% (1.3%)
- Computer accessories, peripherals and parts … $254.6 billion – up 36.5% (1.2%).
In aggregate, Israel’s top 10 export product categories experienced increased sales to the U.S. in 2007, up 12.4% from 2006. This contrasts with a 17.5% gain for the top 10 Israeli exports to the U.S. from 2005 to 2006.
Fastest-Growing Israeli Exports to U.S.
Below are selected Israeli exports to America in 2007 with the highest percentage sales increases from 2006.
- Other military equipment … $271.3 million (up 223.2% from 2006)
- Business machinery and equipment excluding computers … $19.9 million (up 128.2%)
- Sulfur and non-metallic minerals … $37.3 million (up 117.5%)
- Household and kitchen appliances … $18.6 million (up 104.8%)
- Nickel … $11.4 million (up 70.4%).
Fastest-Declining Israeli Exports to U.S.
Selected Israeli exports to America in 2007 with the highest percentage sales decreases from 2006 are listed below.
- Marine engines and parts … US$41.5 million (down 55.7% from 2006)
- Pulp and paper machinery … $106.2 million (down 39.6%)
- Cotton apparel and household goods … $112.6 million (down 31.6%)
- Plastic materials … $40.2 million (down 30.5%)
- Rugs and other textile floor coverings … $12.8 million (down 27.4%).
Israeli Imports from U.S.
Israeli imports from the U.S. rose by 18.7% to $13 billion in 2007, up 88.9% since 2003.
Of American exports to Israel in 2007, the following product categories had the highest values and in total represented 63% of all U.S. shipments into Israel.
- Gem diamonds … US$4.9 billion – up 20.6% from 2006 (37.5% of Israeli imports from America)
- Complete civilian aircraft … $485.9 million – up 971.1% (3.7%)
- Complete military aircraft … $438.7 million – down 37.9% (3.4%)
- Civilian aircraft parts … $429.7 million – up 10.5% (3.3%)
- Other industrial machines … $418.9 million – up 106.4% (3.2%)
- Plastic materials … $332 million – up 82.2% (2.5%)
- Telecommunications equipment … $330.2 million – down 6.5% (2.5%)
- Ammunition, artillery, guns, missiles, rockets, tanks … $302.4 million – up 25.5% (2.3%)
- Other petroleum products … $294.7 million – up 48.1% (2.3%)
- Military-type parts … $283.4 million – down 5.3% (2.2%).
Last year, Israel’s top 10 import product categories from the U.S. grew by 19.5% from 2006. From 2005 to 2006, the top 10 Israeli imports from the U.S. had gained about 14%.
Fastest-Growing Israeli Imports from U.S.
Below are selected American exports to Israel in 2007 with the highest percentage sales increases from 2006.
- Complete civilian aircraft … US$485.9 million (up 971.1%)
- Barley, oats and sorghum … $25.6 million (up 736%)
- Manufactured wood supplies … $6.9 million (up 264.2%)
- Dairy products and eggs… $25.9 million (up 184.3%)
- Buses, trucks and special purpose vehicles … $71.3 million (up 135.2%).
Fastest-Declining Israeli Imports from U.S.
Selected American exports to Israel in 2007 with the highest percentage sales decreases from 2006 are listed below.
- Drilling and oilfield equipment … US$6 million (down 39.8% from 2006)
- Complete military aircraft … $438.7 million (down 37.9%)
- Semiconductors … $249.8 million (down 24.2%)
- Other nonferrous metals … $84.1 million (down 20%)
- Chemical fertilizers … $9.7 million (down 9.9%).
Sources
This analysis is based on latest statistics from the US Census Bureau - Foreign Trade Statistics and CIA World Factbook as of the date of article publication.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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