The Free Trade Agreement contains a non-binding Memorandum of Understanding to remove barriers to trade in the tourism, communication, banking, insurance, business consulting, accounting, justice, IT services and advertising sectors. It also contains an agreement to eliminate all restrictions on government procurement and calls on Israel to relax its compensation obligations for government authorities other than the Israeli Ministry of Defense. On 1 January 1995, all products manufactured in Israel eligible for reduced duties under the Agreement were exempt from customs duties. [1] [4] Services trade with Israel (exports and imports) was estimated at $13.2 billion in 2017. Exports of services amounted to $5.9 billion; Imports of services amounted to $US 7.4 billion. The U.S. services trade deficit with Israel amounted to $US 1.5 billion in 2017. Israel is currently our 24th largest trading partner with a total (bilateral) of goods in 2017 of $34.5 billion. Merchandise exports totaled $12.6 billion; Imports of goods totaled $21.9 billion. The US trade deficit with Israel amounted to $US 9.4 billion in 2017. The U.S.-Israel Free Trade Agreement is obsolete at present, as it only has detailed obligations for trade in goods, while recent free trade agreements contain detailed obligations on agriculture, services, investment, intellectual property protection, standards, transparency, and the rule of law. The U.S.-Israel Free Trade Agreement came into effect in 1985 and is the first U.S.

free trade agreement. It continues to serve as a foundation for expanding trade and investment between the United States and Israel by removing barriers and promoting regulatory transparency. In 2017, U.S. exports to Israel fell 4.9 percent from 2016 to $12.5 billion. Since 1985, when the U.S.-Israel Free Trade Agreement came into effect, U.S. exports to Israel have increased by 456 percent, although the U.S. ran a bilateral deficit of $9.4 billion in 2017. The free trade agreement between Israel and the United States was signed to set an example for the rest of the world to promote trade liberalization. The U.S. goals were to create bilateral economic relations with Israel beyond military support, reduce Israel`s dependence on U.S. aid, and strengthen the Israeli economy. The goal of Israel`s free trade agreement was to secure a large trade market outside the Arab boycott region due to political conflicts, to create trade with higher-income countries in order to deleverage, and to strengthen relations between the United States beyond economic means.

[5] At the February 2016 JC meeting, Israel proposed to resume negotiations for a permanent agreement succeeding the current US-Israel Agreement on Trade in Agricultural Products (ATAP). . . .