The United States is Israel's biggest single trade partner and ally. The US was one of the first countries to officially recognise Israel in 1948. Although military relations between the two countries did not start to grow until the early 1970s, the political relationship between them incrementally improved year on year. The improvement owes its foundations to the following commonalities between the two countries:
The large Jewish community in the US – Until recently the United States had more Jewish citizens than Israel. The American Jewish community is very well absorbed and successful in American society, culture and business. A sizable number of US Jews identify and support Israel's cause politically and financially due to religious and family connections. Large number of US immigrants in Israel – Immigrants from the US make up the largest number of Western origin immigrants living in Israel. Democracy - Both Israel and the US political system are democracies. Past common foes – Prior to the end of the cold war both the US and Israel viewed the USSR as a common enemy to their security and interests. As a result strategic co-operations ensued with the goal of reducing the USSR's sphere of influence in the region. Furthermore Israel and the US shared common enemies such as Egypt and Syria who threatened US friendly regimes such as Saudi Arabia and Jordan in the Middle East region. Present common foes – The US and Israel are threatened by terror organisations (such as Al Qaeda) due to their close relations and co-operation. Furthermore other regimes in the region (eg. Iranian government) threaten the security and interests of both Israel and the US.
As a direct result of the common bonds and strength of their relationship, both the US and Israel have assisted each other in a number of ways. US assistance of Israel included supply of high quality weapons (especially tanks and aircraft). The supply of weapons by the US during the Yom Kippur war was an important factor in turning the war in Israel's favour. Furthermore the US has assisted Israel financially through aid and loans packages. Currently Israel is enjoying the benefits of a $3 billion USD credit allowance for the purchase of US weaponry. Furthermore Israel is beneficiary to a $10 Billion USD loan guarantee which allows Jerusalem to raise loans abroad at lower interest rates. Both countries also have a Free Trade Agreement between them which contributes to the strength of their economic relationship. US political support in organisations such as the UN and World Trade Organisation has been very helpful for Israel's international standing. Perhaps one of the most important areas of US assistance to Israel has been its sponsorship of peace deals with Israel's Arab neighbours. US intervention and diplomacy was instrumental in the Camp David peace accord with Egypt in 1978 and Israel's peace deal with Jordan in 1994. Furthermore the US continues to nurture the peace deals reached between Israel and its neighbours through schemes such as Qualified Industrial Zones (QIZ) which are instrumental in creating an atmosphere f economic integration between Israel and her neighbours.
Israel's value to the US is a strategic one. Since its creation in 1948, Israel has been the only country which the US has been able to continuously rely on in the Middle Eastern. As the Middle East became more crucial to American economic and strategic interests, so did Israel's value to the US as a reliable strategic partner.
This view was strengthened in Washington after America's disastrous relationship with former allies in the region such as the Iranian Shah's regime, and later that of Saddam Hussein who over night turned into hard line American foes. Israel has also provided the US with expertise in areas such as intelligence gathering, commando warfare and sale of sensitive defence technology.
The future of Israel - US political relations is set to continue its improve. This is due to the continuing mutual interests and growing importance of the Middle East region in US strategic plans. The only area of predicted change will be with regards to America's economic assistance to Israel which is expected to decrease in line with improvements in Israel's economy.
Israel – US trade statistics
2004 figures
US Exports to Israel = $9,198.0 billion USD
US imports from Israel = $14,527.1 billion USD (Source: US government statistics) By: Meir Javedanfar
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