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Overview
The U.S.-Israel economic and commercial relationship is strong, anchored by bilateral trade of close to $45 billion in goods and services annually. U.S.-Israel bilateral economic relations are codified in several treaties and agreements, including the 1985 U.S.-Israel Free Trade Agreement (FTA) and the Agreement on Trade in Agricultural Products. Since signing the FTA in 1985, U.S.-Israel bilateral goods and services trade has grown eight-fold, making the United States Israel’s largest trading partner.
Defense
Israeli defense spending averages approximately $15B-$18B per year (national funds). In addition, the United States provides Israel $3.3B annually in Foreign Military Financing (FMF). As of June 2022, Israel has 618 active Foreign Military Sales (FMS) cases valued at $26.4B.
The current U.S. military aid to Israel, covering FY2019 to FY2028 is $38 billion: $33 billion in FMF plus $5 billion in missile defense appropriations. Additional U.S. funding was allocated in 2016 for anti-tunnel capabilities that detect, map, and neutralize underground tunnels.
Israel’s military and commercial activities with the U.S. defense industry are strong and include commercial contracts with major U.S. companies. The local industry is sourcing quality components and sub-systems, and the security cooperation programs focus on: Precision Guided Munitions (PGMs); air and missile defense; maritime security of offshore natural gas; intelligence, surveillance, and reconnaissance; ground forces capability and vehicle support; command, control, communications, and computers; and conventional munitions, presenting export opportunities to U.S. suppliers of high-quality components that can be integrated into Israeli systems.
The country’s defense industry is dominated by three companies: Israel Aerospace Industries (IAI), Rafael Advanced Defense Systems (both parastatals), publicly owned, and Elbit Systems. The companies have a diverse portfolio of products and services, including space and airborne reconnaissance systems, radar systems, UAVs, avionics and electro-optical systems, munitions, tanks and armored personnel carriers. They produce structural components and parts and operate maintenance, repair and upgrade facilities. In addition, there are several hundred small and medium sized enterprises active in the sector.
Space
Israel has a space research program with scientific and commercial goals and has developed indigenous launch capabilities. A space cooperation agreement with NASA in 2015 expanded cooperation in civil space activities. Israel’s space program is small but significant. The country’s first mission to the moon was in April 2019, that resulted in an unsuccessful lunar landing, however this event established Israel as the fourth nation to attempt to soft land on the moon. In April 2022, Eytan Stibbe, as a space tourist, became the second Israeli in space, since Ilan Ramon, who died in the 2003 Columbia disaster, returning from space.
The Israel Space Agency (ISA) published a new strategic plan in May 2022 in which it agreed on the following targets for developing the Israeli space industry:
- Doubling the number of space companies (from 60, at the present time, to at least 120);
- Quadrupling the number of people employed in the space industry, from 2,500 to 10,000;
- Quadrupling the scope of annual sales made by the space industry, from US $1 billion to US $4 billion;
- Increasing the number of space researchers in the academic world, from 120 to 160 (an increase of 33%);
- Increasing the number of high school graduates who have been involved in the space industry, from 200 to 4,000; and
- Establishing international partnerships in the space industry and increasing the Israeli presence in key multi- and international organizations.
Civil Aviation
Israel's national carrier, El Al, has a fleet of 45 aircrafts, all manufactured by Boeing. The airline company, like the entire airline commercial aviation industry, suffered major loses due to the pandemic, and on July 2020, the company announced it had worked out a bailout deal with the Israeli government. Two months later, over 45% of El Al shares were bought by Kanfei Nesharim, a company owned by Eli Rozenberg. The Israeli government still holds ~13% stake in the company. In April 2022, the first ever female CEO was appointed: Dina Ben-Tal Ganancia. While it’s unlikely that El Al Airlines will be purchasing any new aircrafts anytime soon, opportunities may be found for maintenance, repairs, upgrades and other services.
Upcoming Events
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Meet Yariv Moravnik Shavitt
Aerospace & Defense Commercial Specialist
U.S. Embassy Jerusalem
Branch Office Tel Aviv |
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12 Month Total U.S. Aerospace & Defense Exports to Israel and the GCC (USD; April 2021 - March 2022)
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The Gulf Cooperation Council (GCC) member countries are: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates |
 Visuals and data...
The aerospace and defense industries, whose supply chains are very integrated, are still grappling with COVID-related supply chain disruptions that are being further compounded by the war in Ukraine. According to the Aerospace Industries Association, 64% of the industry’s COVID-related job losses in 2020 were due to supply chain problems that particularly affected small and medium-sized businesses in the United States. The industry is still wrestling with a shortage of skilled workers, as well as shortages for critical components like semiconductors and raw materials like titanium (much of which is produced in Russia and Ukraine). The Department of Commerce is working to identify these disruptions and understand the underlying issues. If your company is facing supply chain issues, please reach out to Bob McEntire at Bob.McEntire@trade.gov so that we can potentially help to address your issues.
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India Aerospace Trade Mission
New Delhi and Hyderabad
September 19-23, 2022 |
Join this mission to be introduced tp U.S. companies to India’s aerospace ecosystem and find business partners.
Why You Should Join:
- Gain market insights, make industry and government contacts, solidify business strategies, and advance specific projects.
- Learn about Indian market priorities, policy and regulatory changes, projects, and business opportunities, as well as strategies to navigate the business climate in India.
- Participate in one-on-one business appointments with pre-screened potential buyers, agents, distributors, or joint venture partners in New Delhi and Hyderabad with optional appointments available in Bengaluru and Mumbai.
- Participate in Networking Receptions.
Targeted U.S. Products and Services
The mission is designed for U.S. firms and organizations who play a part in the industry, especially those with products in the following categories:
Airport infrastructure
ICT/security systems
Aerospace equipment
Avionics
Maintenance, Repair, and Overhaul (MRO)
Training
Unmanned aerial vehicle (UAV) technologies
Space technologies
Application Deadline: Aug. 12, 2022
Click here for more information and contact Amy Magat or Oscar Magana to sign-up.
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Indo Defense – Aerospace and Defense Trade Mission to Indonesia
Jakarta and Bandung
October 31 - November 4, 2022 |
The United States Department of Commerce, International Trade Administration (ITA) is organizing an Indo Defense - Aerospace and Defense Trade Mission (IDADTM) to Indonesia. This trade mission will take place in conjunction with Indo Defense Expo & Forum, which runs from November 2-5. The IDADTM will connect a select group of U.S. aerospace and defense manufacturers and service providers with opportunities in the Indonesian market.
Delegates will benefit from the guidance and insights of ITA’s commercial teams working in these markets, customized one-on-one business appointments with pre-screened partners, a business excursion to facilities at one of Indonesia’s leading manufacturing hubs, and opportunities to network with Indonesia government and aerospace industry officials. The mission will introduce U.S. firms to aerospace and defense stakeholders in the region and assist U.S. companies in finding foreign business partners to export their products and services to Indonesia.
Click here for more information and contact Andrey Piroozgar or Luke Yanos to sign-up.
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Executive-Led Aerospace & Defense Trade Mission to the Middle East
Israel, Saudi Arabia and Bahrain
November 1-10, 2022 |
The United States Department of Commerce, International Trade Administration (ITA), is organizing an Aerospace and Defense Trade Mission to the Middle East on November 1-10, 2022. This mission will be led by Arun Venkataraman, Assistant Secretary for Global Markets. The purpose of the mission is to introduce U.S. companies to the aerospace and defense ecosystem in key Middle Eastern countries, and assist delegate companies with finding business partners and exporting their products and services to the region.
Mission delegates will have access to business development opportunities across Israel, Bahrain, and Saudi Arabia. Participating firms will gain market insight, make industry contacts, solidify business strategies, and advance specific projects, with the goal of increasing U.S. exports of products and services in the aerospace and defense sectors. The subsectors will depend on the nature of the market, potential demand, prospective government procurements, and other factors closer to the start of recruitment.
The mission will include customized one-on-one business appointments with pre-screened potential buyers, agents, distributors, and joint venture partners. It will also include meetings with central, state, and local government officials and industry leaders, as well as networking events.
Full details and sign-up information is located on our web site. Please direct questions to Melissa Grosso or Fernando Jimenez.
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Thailand, Aug. 29 - Sep. 1, 2022
Defense Security
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India, Sep. 5-7, 2022
Bengaluru Space Expo (BSE) 2022
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Canada, Sep. 6-7, 2022
INTERNATIONAL AEROSPACE INNOVATION FORUM 2022
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Poland, Sep. 6-9, 2022
International Defense Industry Exhibition (MSPO)
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U.K., Sep. 7-8, 2022
Space-Comm Expo
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South Africa, Sep. 21-25, 2022
Africa Aerospace & Defense (AAD)
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South Korea, Sep. 21-25, 2022
Defense Expo Korea, DX Korea
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U.K., Oct. 18-20, 2022
MRO Europe
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Orlando, FL, Oct. 18-20, 2022
NBAA-BACE
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Kazakhstan, Oct. 19-21, 2022
Airport Expo 2022
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Jordan, Oct. 31 - Nov. 3, 2022
SOFEX
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U.K., Nov. 2-3, 2022
Three Counties Defence & Security Expo (3CDSE)
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Indonesia, Nov. 2-5, 2022
Indo Defence
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Mexico, Nov. 15-16, 2022
Mexico's Aerospace Summit
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France, Nov. 29 - Dec. 1, 2022
Aeromart Toulouse 2022
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Vietnam, Dec. 8-10, 2022
Vietnam Defense Show
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Australia, Feb. 28 - Mar. 5, 2023
Avalon Airshow
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Japan, Mar. 15-17, 2023
DSEI Japan
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Brazil, April 11-14, 2023
LAAD
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Mexico, Apr. 26-29, 2023
FAMEX
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Singapore, May 3-5, 2023
Rotorcraft Asia & Unmanned Systems Asia
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Singapore, May 3-5, 2023
IMDEX Asia
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U.K., Sep. 12-15, 2023
DSEI
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Saudi Arabia, Feb. 4-8, 2024
World Defense Show
Our mission is to increase U.S. exports, enhance job creation, strengthen national security, promote and protect U.S. commercial interests abroad, and deliver customized solutions to ensure that U.S. businesses compete and win in the global marketplace. Export assistance is provided to U.S. companies who manufacture goods and/or provide services of at least 51% U.S. content. We assist companies in the following areas: International Trade Counseling, Business Matchmaking, Market Intelligence, Customized Services, and much more. Contact Us to find your local International Trade Specialist.
Please direct newsletter questions to Erica Ramirez at Erica.Ramirez@trade.gov.
View as a webpage
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Market Research by Country |
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Export
Statistics |
Monthly U.S. Civil Aircraft, Engines, and Parts Exports
Exports (billions, USD)
| April 2021 |
6.64 |
| May 2021 |
5.79 |
| June 2021 |
7.89 |
| July 2021 |
6.95 |
| August 2021 |
6.50 |
| September 2021 |
6.69 |
| October 2021 |
7.66 |
| November 2021 |
7.18 |
| December 2021 |
8.72 |
| January 2022 |
3.38 |
| February 2022 |
6.41 |
| March 2022 |
7.48 |
Top 20 U.S. Civil Aircraft, Engines, and Parts Export Destinations
(April 2021 - March 2022)
12-Month Total Exports (billions, USD)
| Germany |
7.84 |
| France |
7.31 |
| Canada |
6.62 |
| Brazil |
6.45 |
| U.K. |
5.35 |
| China |
4.85 |
| Singapore |
4.39 |
| Japan |
3.11 |
| Ireland |
2.27 |
| UAE |
1.95 |
| Taiwan |
1.87 |
| Turkey |
1.77 |
| India |
1.21 |
| Chile |
1.21 |
| Australia |
1.01 |
| Korea |
0.95 |
| Hong Kong |
0.92 |
| Colombia |
0.92 |
| Netherlands |
0.86 |
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Advocacy in Action |
In 2021 The Advocacy Center Helped U.S. companies WIN BIG! U.S. Companies won foreign government contracts in 57 countries for $16Billion!
These contracts support thousands of jobs across the U.S. and boast incredible U.S. technology and innovation being deployed around the world. 25% of active advocacy cases are supporting SME businesses - Contact us to learn how we can help your company.
 Click to learn about trillions of dollars in foreign government procurement opportunities.
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