Israel - Foreign trade



Israel is a relatively small country with limited natural resources and an affluent, bourgeois citizenry; as such, it is highly dependent on international trade, both to supply its industry with natural resources, and to purchase its value-added products. In 2000, foreign trade amounted to 27% of national income. Exports that year totaled $31.4 billion, up 19% from the previous year. Imports, meanwhile, also grew to $35.7 billion. The vast majority (66%) of Israeli exports are manufactured goods and their primary destinations are the US and the EU, which together buy 65% of Israel's exports. Imports are primarily industrial resources (63%)—other large sectors are capital goods (19%) and consumer products (11%).

Cut diamonds top the list of Israel's export commodities (25%), reflecting 17.5% of the world's total diamond exports. Machinery and equipment, including telecommunications equipment (13.6%) and other electrical machinery (11.3%) are important exports.

In 2000 Israel's imports were distributed among the following categories:

Israel

Consumer goods 10.6%
Food 4.5%
Fuels 9.8%
Industrial supplies 38.9%
Machinery 26.7%
Transportation 9.2%
Other 0.3%

Principal trading partners in 2000 (in millions of US dollars) were as follows:

Israel

COUNTRY EXPORTS IMPORTS BALANCE
United States 11,734 6,641 5,093
Belgium 1,873 3,548 -1,675
China (inc. Hong Kong) 1,646 1,501 145
Germany 1,521 2,672 -1,151
United Kingdom 1,358 2,712 -1,354
Netherlands 899 1,437 -538
Italy 803 1,721 -918
France 754 1,158 -404
India 557 535 22
Switzerland 502 1,918 -1,416

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