Economic Development and Regional Economic Cooperation – An Israeli Perspective

Dan Catarivas

Economic Transformation and Social Change in the Middle East

Berlin, December 2007

Goods & Services Export Development (including diamonds , B $)

43.5

19.5

1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *2006

יצוא שירותים

יצוא סחורות

58

63

Services Goods

ISRAEL

Israel implements 6 FTA’s Israel implements 6 FTA’s with 35 countries, with 35 countries, Allowing products to Allowing products to enter free of duty enter free of duty

Israel’s Free Trade AgreementsIsrael’s Free Trade Agreements

Canada

U.S.A

Mexico

E.U. (27 Countries)

Turkey

E.F.T.ASwitzerland, Norway, Iceland, Liechtenstein

MERCOSUR* Brazil, Argentina,

Uruguay , Paraguay

Israeli Export, Excluding Diamonds )2006)

North America33%

Africa3%

South America4%

Asia & Far East15%

East Europe7%

West Europe (EU + EFTA)34%

Total of $30.61Bn

Israeli Import, Excluding Diamonds )2006)

North America14%

Africa1%

South America2%

Asia & Far East19%

West Europe (EU + EFTA)42%

Total of $38.73Bn

East Europe5%

Israeli Export by Sectors, Excluding Diamonds, 2006

Israeli Export by Sectors, Excluding Diamonds, 2006

Other commodities; 29%

Machinery & electrical equipment;

26%

Mineral products; 10%

chemicals 4%

Vehicles & transport equipment

; 5%

Base metals & articles thereof; 7%

Plastics & rubber; 4%

Optical, photographic & medical instruments; 9%

Prepared foodstuffs, beverages, tobacco; 3%

Textiles ; 3%

Israeli Import by Sectors, Excluding Diamonds, 2006

Israeli Import by Sectors, Excluding Diamonds, 2006

foodstuffs, beverages, tobacco

3%

Optical, photographic & medical instruments

5%

Mineral products20%

Other commodities16%

Machinery, electrical equipmentir parts

26%

Vehicles & transport equipment

9%

Base metals & articles thereof

8%

Plastics & rubber 6%

Textiles 5%

Israeli – Palestinian bilateral trade (millions us$, Including Diamonds, Gas & Fuel)

1,800

1,300

382

1,854

1,339

360

1,740

1,257

370

1,355

979

273

1,177

850

216

1,359

982

256

1,803

1,302

314

2,052

1,482

457

1,991

1,438

550

-

500

1,000

1,500

2,000

2,500

1998 1999 2000 2001 2002 2003 2004 2005 2006

total palestinian import

import from israell

export

Egyptian Export to Israel by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Egyptian Export to Israel by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Other, 28, 31%

foodstuffs, beverages, 5, 5%

Vegetable products, 6, 6%

Textiles , 6, 6%Minerals, 14, 15%

Plastics & rubber , 14, 15%

Chemicals, 20, 22%

Total: 93 M USD

Jordanian Export to Israel by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Jordanian Export to Israel by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Total: 38 M USD

Other, 8.6, 23%

Chemicals, 11.4, 31%

Base metals , 6.1, 16%

Textiles , 5.4, 14%

fats & oils, 3.7, 10%Plastics & rubber , 2.4, 6%

Israeli Export to Egypt by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Israeli Export to Egypt by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Total: 127 M USD

Machinery 5, 4%

Other, 13, 10%

Textiles , 56, 45%

Chemicals, 27, 21%

Wood &Paper, 17, 13%Plastics & rubber , 9, 7%

Israeli Export to Jordan by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Israeli Export to Jordan by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Total: 136 M USD

Plastics & rubber , 13.8, 13%

Machinery & electrical equipment,

Textiles , 20.2, 19%

Paper, 25.8, 24%Other, 31.80 , 30%

Israeli Export to Morocco by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Israeli Export to Morocco by Sectors, Excluding Diamonds, (Millions of USD ( 2006

Total Export: 11.5 M USD ; Total Import: 1.8 M USD

Chemicals, 6.6, 58%

Other, 0.7, 6%

Plastics & rubber , 0.6, 5% Machinery 3.6, 31%

Intra Regional Trade 2006Intra Regional Trade 2006

59.0%

53.9%

27.2%

13.5%

7.5%

0%

10%

20%

30%

40%

50%

60%

EU 15 NAFTA ASEAN MERCOSUR MIDDLE EAST

Mutual Interest in the New Economic Order

Main Incentives for Cooperation Economic EfficiencyDecreasing dependence on other Trade blocks

and Multi National CorporationsLarger Purchasing MarketsReluctant and ineffective ENP policyStronger Economic block in front of NAFTA,

EU, ASEAN, MERCOSURStronger Economic Block in the WTO and other

Multinational Forums

Complementarity

Areas of Cooperation Low Tech Industries Advanced Agriculture Environmental Friendly Technologies Infrastructure (Railroads, Optic Fibers, Etc.) Water Treatment Communications and ITTransportation

Win – Win Situation

Developing economic agenda for the region and for Arab-Israeli Relations

Focus on mutual Economic gains separately from Political Issues

Contact DetailsDivision of Foreign Trade and International RelationsT: 972-3-5198814F: 972-3-5198785W: www.industry.org.il