What is the True Cost of US-Israel Trade?
Economic Espionage and Trade
Mitchell Bard
“The [US-Israel] relationship extends beyond the federal government to the state and local level. A milestone in these contacts occurred with the 1984 creation of the Texas-Israel Exchange, promoting projects in agriculture. Since then, at least 23 other states have signed agreements with Israel to increase cooperation in trade, tourism, research, culture and other activities of interest to individual states. The financial benefits to the states from bilateral agreements can also be substantial, considering that 17 states exported at least $100 million worth of goods to Israel in 2006, and three exported more than $500 million, with New York leading the way with $4.6. billion.”
Grant Smith
“Trade is a great example of the ‘benefits’ of Israel to the US. But Texas exports prove nothing. In the late 80’s, US-Israel trade was roughly in balance. In 1984 the US and Israel signed a “free trade agreement” and between 1989 and 2006 the US cumulative trade deficit ballooned to almost a $50 billion deficit with Israel. The FBI investigated AIPAC in 1984 because it had acquired confidential International Trade Organization documents on the US negotiating position. Presumably, AIPAC then used that information against the United States. This unfavorable trade deal is symbolic of the huge cost of this relationship to the US and how the lobby does business.”