You are head of the U.S. Government’s export promotion agency. How are U.S.-Israeli trade relations doing?

Strong and growing. Israel is our largest export market in the Middle East. There are thousands of U.S. companies represented in Israel. The U.S. is Israel’s largest single trading partner in the world, and we traded over $26 billion worth of goods last year. Our exports to Israel grew by nearly seven percent last year alone. There are many reasons to be optimistic about our trade relations.

But Israel is a pretty small market – why is trade so big?

There is cultural affinity between Americans and Israelis. One in fifteen Israelis visited the U.S. last year. We have similar tastes and lifestyles, and so we consume the same kinds of products. Today more students from Israel study in U.S. universities than from any other Middle Eastern country. Whether it’s sporting equipment, computer software, or franchise restaurants, chances are that Israelis and Americans like - and buy - the similar products and services.

There are also obvious synergies between our economies. U.S. companies sell many components and inputs for Israel’s manufacturing sectors, particularly Israel’s high tech and heavy industries. These include products like industrial chemicals, electronic components, and spare parts for machinery. Furthermore, U.S. firms like Intel, Motorola, Microsoft, and Applied Materials have significant investments in Israel that both drive U.S. trade to Israel and build U.S. exporters’ confidence in Israel’s business environment.

Moreover, Israel’s economy has been growing at a healthy pace for several years; this year the IMF expects the economy to grow by approximately five percent. It is my hope that Israelis continue to buy American.

In what sectors can U.S. companies really expand in Israel?

Services represent good opportunities for U.S. firms especially in franchising, travel & tourism, and finance. There are also good opportunities for electricity equipment manufacturers. With the upcoming completion of Israel’s gas distribution network, new private sector power plants will require U.S. equipment. U.S. firms supply over 50 percent of Israeli imports of medical instruments and disposable medical devices for the $500 million-a-year health sector.

Israel is expanding its infrastructure. Light rail and railways, highways, desalination – all these represent great opportunities for U.S. firms. Other very attractive opportunities exist in Israel’s information technology, telecom, electronics, safety and security, and defense sectors. Israel and the U.S. are on the cutting edge in these areas, and so there are natural linkages between U.S. and Israeli firms. U.S. companies should contact the Commercial Service staff in Israel to get the details about these opportunities – their website is www.buyusa.gov/israel.

Ok, but companies in every market usually have something to complain about. What are the problems in Israel?

We have noticed that the share of European goods in the Israeli market is growing quite rapidly. This trend is fueled by the fact that Israel is adopting European standards. You know, Israeli law does actually encourage the adoption of multiple international technical standards. The adoption of such parallel, equally strict safety standards allowing the import of additional, high-quality products would make Israel a much more open market. We think it would be beneficial to the Israeli consumer if Israel put this law into practice more often.

A concern for U.S. companies who want to enter the Israeli market is the protection of their intellectual property. Ingenuity is a key trait of the Israeli workforce. Israel boasts the third highest number of patents per capita in the world. Protecting this intellectual property is clearly in Israel’s best interests, not only America’s. Greater IPR would give U.S. companies - and any companies for that matter - greater confidence in conducting business in Israel.

How does the Commercial Service help U.S. firms do business in Israel?

The Commercial Service offices in Israel essentially do three things. First, they are actively matching U.S. companies with Israeli companies interested in representing U.S. firms, or distributing U.S. goods, or simply purchasing U.S. products. Second, they report on serious market issues, such as standards, so that Washington is aware and can take action. Third, the Commercial Service informs U.S. firms about Israeli business opportunities and trends through market research. The Commercial Service staff is an incredible team, and I encourage your business readers – American and Israeli – to contact them.

What do you tell U.S. business people about Israel?

I visited Israel last November and it is a beautiful country. Companies doing business in the U.S. will enjoy a similar style of doing business in Israel. The environment is professional, and Israelis are direct and frank. I think U.S. businesses appreciate Israelis’ "chutzpa", because at the end of the day, this quickly clarifies business rapports, saves time, and ultimately saves money.

I would also tell U.S. companies to get ready to compete. Israel is an aggressive market. Again, the Commercial Service can give U.S. firms an honest assessment of their prospects for success in Israel. I look forward to going back to Israel, and I look forward to even stronger, healthier business ties with one of our most important allies.