Israel's trade dependency: reality check

**NewsGuy** · 02-16-2002, 01:11 PM

Just a reality check to see, exactly, how dependent is Israel's economy on the Arab-controlled EU:

Here are some figures from the CIA World Factbook on Israel:

Exports: $31.5 billion (f.o.b., 2000)

Exports - commodities: machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel

Exports - partners: US 36%, UK 6%, Benelux 5%, Hong Kong 4%, Netherlands 4% (1999)

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Imports: $35.1 billion (f.o.b., 2000)

Imports - commodities: raw materials, military equipment, investment goods, rough diamonds, fuels, consumer goods

Imports - partners: US 20%, Benelux 11%, Germany 8%, UK 8%, Switzerland 6%, Italy 5% (1999)

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This means that a relatively small percent of Israel's exports, i.e., customers, are European. On the other hand, Israel is a very good customer of the Europeans.

This would sugest that there would be no problems at all for Israel to do as it pleases, regardless of the EU's position.

takeo · 02-17-2002, 02:34 AM

http://www.mfa.gov.il/mfa/go.asp?MFAH00ua0

"By Tal Muscal

JERUSALEM (April 20) - Despite the current economic slowdown, trade between Israel and the European Union (EU) has flourished in the past three months, according to figures released by the Central Bureau of Statistics yesterday. Meanwhile, trade with the US and Asia has dropped.

In the first quarter, exports to the EU surged 6 percent in annual terms after decreasing 5% in the latter half of last year. Excluding diamonds, exports to the EU totaled $1.83 billion. At the same time, imports from the EU stagnated, after gaining 5.5% in the second half of last year. The CBS said imports of goods and services originating in the EU (excluding diamonds) amounted to $3.1b. Last year Israel exported some $6.9b. to Europe while importing $11.8b. *Currently, the EU is Israel's largest trading partner accounting for 32% of exports and 41% of imports*. "
Jerusalem post
http://www.jpost.com/Editions/2001/0...ess.24923.html

takeo · 02-17-2002, 02:37 AM

Loosing the largest trading partner(combined with all arab countries, possibly Turkey and many asian countries) will be painfull, very painfull.

McSceptic · 02-18-2002, 12:47 AM

World Fact Book is never the most up-to-date publication.

Current figures:

EU - 27.2%

North America - 38.8%

Asia - 18.5%

Hypothetical EU trade sactions would have an asymetric effect on the Israeli economy. I imagine agriculture would be hit badly, but high-tech would not.

It's unlikely to happen anytime soon tho, unless "transfer" becomes policy.

**NewsGuy** · 02-18-2002, 06:33 PM

Regradless of any of these data reports, it is clear that Israel spends more money with Europe, than Europe is spending with Israel. This trade imbalance, which is greatly in favor of the Europeans, is the reason why the Europeans would not want to stop trading with Israel.

But even if they would, Israel would survive it easily, and meanwhile go about its business of ridding the world of Palestinian terrorism freely without European blackmail.

I only regret that Israel does not reduce its purchasing from Europe and take its business elsewhere.

takeo · 02-18-2002, 09:02 PM

because Europe is Israel's biggest import AND export-partner, and it is the only develloped part of the world close to Israel(and in fact the only one together with Turkey still willing to trade with Israel). A European embargo would hurt Israel, no doubt about that.

McSceptic · 02-19-2002, 02:04 AM

EU GDP is around $1550 billion, Israel around $110 billion. What would be a big deal for Israel would be a flea-bite for the EU.

If anything, the EU (taken as a single economy) is very well insulated from external pressures - most of its trade is with itself (the UK and Denmark are exceptions to this).

Israel by contrast needs to export, its own domestic market is very small and can only absorb so many high-end relational databases or gee-whiz mobile phones.

But it's take a lot before sanctions were imposed.

Israelis don't seem share your antipathy to the EU NewsGuy. Applications for dual-citizenship have shot up, including a doubling of applications for French citizenship.

takeo · 02-19-2002, 06:50 AM

Not yet, but if Sharon continues the choosen path and start deportations, killing or expulsing Arafat and other radical policy(as favored by the right-wing), I'm sure there will be economic sanctions against Israel.

watcher · 02-19-2002, 03:22 PM

Who really does all the killing and who tries to defend their right to exist? These "palestinians" living on the soil of Israel try to expel and murder the rightful owner Israel so that on top of having all their surrounding lands they can have Israel as theirs too.

No concerns about the world turning to completely support terrorism... If that happens of course Israel would have nothing to do with the world, but no worries. Nothing is really new, Israel always exists and will continue forever.

takeo · 02-19-2002, 07:23 PM

actually israel does a lot more than defending its right to exist, which doesn't mean occupying the gaza, Westbank and eastern Jerusalem. If israel would be defending its right to exist, the world would support Israel.

watcher · 02-19-2002, 08:05 PM

If they're complaining about occupying Gaza, Westbank and eastern Jerusalem by means of mindless slaughter through terrorism... Then they should stop occupying those territories of Israel they allowed them to stay in.

What's so hard to simply drop the name "palestine" that wasn't originally arab in the first place and return home and let Israel live in all the homeland of Israel in peace? Ah almost forgot... It's more than not looking respectful in front of their family, but they must keep the name "palestine" and continue hostilities or risk losing their funds and support from their homelands thus the refugee situation...

takeo · 02-19-2002, 08:22 PM

palestine was the name of the land since 2000 years, even you will recognise that, most people, including me, will now oofficially refere to it as Israel(for Israel) and as palestine(for westbank, eastern jerusalem and gaza) as a consequence of what happened in 1948. However refering to historical times it should still be called palestine in its totality, as this was the name used untill 1948, even by theodor Herzl.
And Israel should stop the Israeli occupation of Palestine than the war will stop too. simple.

watcher · 02-19-2002, 08:43 PM

To reside on someone elses land does not make it theirs unless they rightfully acquired the land by the owners which they did not. Plus Israel was not completely removed and the only reason they want Yerushalim is because Yerushalim has always been the focal point of Israel.

Any land in Israel that can possibly be contested is the Gaza strip which remained mostly in the hands of the sea peoples until Rome came along... But even there "palestinians" can't hold claim as part of these sea peoples but that land can still be contested.

All in all though "palestine" is occupying the soil of Israel not the other way around. Israel was there before "palestine", during the time it was renamed "palestine", and now as the Land of Israel is called Israel again.

McSceptic · 02-19-2002, 11:56 PM

The Kingdom of Israel was in the north. You are thinking of the Kingdom of Judah which was in the south and which had Jerusalem as its capital.

The bulk of Israelites (10 tribes) were in the Kingdom of Israel which had Samaria as its capital.