EXCLUSIVE REPORT : Israeli defense banned from Paris arms show – France’s message to the global community

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In a significant ruling, a French district court has ordered the exclusion of representatives from Israeli defense firms from attending the Eurosatory 2024 defense and security trade show. This decision goes beyond the French government’s earlier directive to prohibit the Israeli defense industry from exhibiting at the event, reflecting escalating tensions over Israel’s military operations in Rafah.

The directive from the French Defense Ministry, issued last month, barred Israeli defense companies from setting up stands at the Paris show. The ministry cited the untenable conditions created by ongoing Israeli Defense Forces (IDF) operations in Rafah as the primary reason for this prohibition. French President Emmanuel Macron’s call for the cessation of these operations underscored the government’s stance.

Eurosatory, one of the largest defense and security trade shows globally, is held biennially near Paris’s main international airport. The 2024 edition, scheduled from June 17 to June 21, had planned to host 74 Israeli firms, with around 10 of these companies slated to exhibit weapons. This event typically attracts over 1,700 firms and more than 60,000 attendees from 150 countries.

Charles Beaudoin, President of Coges Event, the organizer of Eurosatory, expressed concern over the court’s ruling in a letter dated Saturday. He noted that the court’s decision extended beyond the government’s initial directive by banning not only the exhibition but also the presence of representatives from Israeli firms. Beaudoin emphasized that Coges is pursuing the quickest possible legal avenues to appeal the decision, although the ruling will be enforced for now. The French government is also expected to issue a formal response to the court’s ruling.

The ban includes employees of Israeli firms, regardless of their nationality, while allowing Israelis employed by non-Israeli firms to attend the event. There is no blanket ban on Israelis seeking to visit the fair.

This controversial decision came in the wake of an Israeli airstrike in Rafah targeting two senior Hamas operatives. The strike ignited a fire in a complex housing displaced Palestinians, resulting in dozens of civilian deaths and triggering widespread international outrage. An IDF investigation revealed that the deadly blaze might have been caused by a hidden weapons cache rather than the airstrike itself, which used munitions unlikely to cause such a fire. Nevertheless, the incident prompted French President Macron to demand an immediate ceasefire, leading to the defense ministry’s initial ban on Israeli firms at the trade show.

The Eurosatory trade show has been a crucial platform for the global defense industry, showcasing cutting-edge military technology and fostering international defense cooperation. The exclusion of Israeli firms represents a significant shift, reflecting broader geopolitical tensions and the international community’s reaction to the ongoing conflict in Gaza.

The Gaza conflict, which escalated dramatically after the October 7 Hamas attack on Israel, has resulted in heavy casualties on both sides. Hamas’s assault involved approximately 3,000 terrorists infiltrating Israel by land, air, and sea, leading to the deaths of around 1,200 Israelis and the abduction of 251 hostages. The Israeli response has been intense, with the IDF conducting extensive ground operations and airstrikes in Gaza.

The Hamas-run Gaza health ministry reports that over 37,000 Palestinians have been killed or are presumed dead, though these figures are unverified and do not distinguish between civilians and combatants. Israel claims to have killed approximately 15,000 terror operatives during the conflict, including 1,000 terrorists within Israel during the October 7 attack.

The impact of the conflict has been profound, with significant casualties among Israeli forces. To date, 307 soldiers and one police officer have been killed during ground operations against Hamas and along the Gaza border. Additionally, a civilian Defense Ministry contractor has lost his life in the Strip.

The exclusion of Israeli defense firms from Eurosatory 2024 is likely to have far-reaching implications for the defense industry and international relations. The decision underscores the increasing pressure on Israel from the international community regarding its military actions in Gaza and highlights the complex interplay between defense, diplomacy, and global security concerns.

As the situation continues to evolve, the appeal by Coges Event and the anticipated response from the French government will be closely watched. The outcome will not only affect the participation of Israeli firms in one of the world’s premier defense trade shows but also signal broader geopolitical shifts and the international community’s stance on the Israeli-Palestinian conflict.

The Economic Consequences of France’s Behavior in Preventing Israeli Companies from Participating in the Paris Arms Show

The recent decision by a French district court to exclude representatives from Israeli defense firms from the Eurosatory 2024 defense and security trade show has sparked significant controversy. This ruling, which extends beyond the French government’s initial ban on Israeli firms from exhibiting at the event, reflects deeper geopolitical tensions and carries substantial economic implications.

The Eurosatory trade show, scheduled to take place from June 17 to June 21 near Paris, is one of the largest defense and security exhibitions in the world. It typically attracts over 1,700 firms and more than 60,000 attendees from 150 countries. The event provides a critical platform for defense companies to showcase their products, foster international collaborations, and secure contracts. The exclusion of Israeli firms from this event is poised to have wide-ranging economic repercussions.

Background of the Ban

The French Defense Ministry’s directive last month ordered Coges Event, the organizer of Eurosatory, to ban Israeli defense companies from setting up stands at the show. This decision was a direct response to Israeli Defense Forces (IDF) operations in Rafah, which had resulted in civilian casualties and international outrage. French President Emmanuel Macron’s call for the cessation of IDF operations underscored the government’s stance. The court’s ruling further extended this ban, preventing not only the exhibition but also the presence of representatives from Israeli firms.

Potential Economic Consequences

Loss of Business Opportunities for Israeli Companies

The exclusion of 74 Israeli firms, including approximately 10 that were slated to exhibit weapons, from Eurosatory 2024 represents a significant loss of business opportunities. These companies rely on international trade shows to display their latest technologies, engage with potential clients, and secure lucrative contracts. The inability to participate in Eurosatory could result in lost sales, diminished market presence, and reduced competitiveness in the global defense market.

Impact on Bilateral Trade Relations

The ban is likely to strain economic relations between France and Israel. Defense trade is a critical component of the bilateral trade relationship, and the exclusion of Israeli firms from Eurosatory may lead to retaliatory measures or reduced cooperation in other sectors. This tension could hinder future trade agreements, joint ventures, and collaborative projects, ultimately affecting both economies.

Negative Signal to International Investors

The exclusion of Israeli firms from a major international trade show sends a negative signal to investors and businesses worldwide. It raises concerns about the stability and predictability of the business environment in France, potentially deterring foreign investment. Companies may view this decision as a precedent for future political interference in economic activities, leading to reduced investor confidence.

Economic Impact on French Companies in Israel

Several French companies operate in Israel, spanning various sectors such as technology, defense, and infrastructure. The strained relations resulting from the ban could lead to adverse economic consequences for these companies. Potential retaliatory measures by Israel or a decrease in collaborative opportunities could affect the profitability and market presence of French firms in Israel.

Relevant French Companies in Israel

Airbus

Airbus, a leading aerospace and defense company, has a significant presence in Israel. It collaborates with Israeli companies on various aerospace projects and supplies aircraft to Israeli airlines.

Thales

Thales, a major player in the defense, aerospace, and security sectors, operates extensively in Israel. The company partners with Israeli firms on defense technology projects and provides advanced systems to the Israeli military.

Veolia

Veolia, a multinational corporation specializing in water management, waste management, and energy services, has substantial operations in Israel. It is involved in several infrastructure and environmental projects across the country.

Alstom

Alstom, a global leader in rail transport, is engaged in various transportation projects in Israel, including the development and maintenance of railway systems and urban transit solutions.

Israeli Companies in France

Elbit Systems

Elbit Systems, a prominent Israeli defense electronics company, has a presence in France. It collaborates with French firms on defense projects and provides advanced technological solutions to the French military.

Israel Aerospace Industries (IAI)

IAI, Israel’s largest aerospace and defense company, operates in France, partnering with local companies on aerospace and defense initiatives. It supplies advanced systems and technologies to the French defense sector.

Teva Pharmaceutical Industries

Teva, a leading global pharmaceutical company based in Israel, has a significant presence in France. It manufactures and distributes pharmaceutical products across the country, contributing to the healthcare sector.

Check Point Software Technologies

Check Point, a cybersecurity company headquartered in Israel, operates in France, providing cybersecurity solutions to French businesses and government agencies.

Potential Economic Damages

Direct Financial Losses

The exclusion of Israeli firms from Eurosatory 2024 could result in direct financial losses for these companies. The inability to secure contracts and showcase products may lead to decreased revenues and profitability. The defense sector is highly competitive, and missing a major trade show like Eurosatory can significantly impact a company’s market position.

Reduced Technological Exchange

The ban on Israeli firms hampers technological exchange and collaboration between Israeli and French companies. Defense trade shows are vital for the dissemination of new technologies and innovations. The lack of Israeli participation means that French companies and the broader defense industry will miss out on potential technological advancements and collaborative opportunities.

Long-Term Market Impact

The long-term market impact of the ban could be substantial. Israeli defense companies may seek alternative markets and partners, reducing their reliance on European trade shows and collaborations. This shift could lead to a realignment of global defense trade dynamics, with potential long-term economic consequences for both Israeli and French companies.

Retaliatory Measures

Israel may implement retaliatory measures in response to the ban, further exacerbating economic tensions. These measures could include restrictions on French companies operating in Israel, increased tariffs on French goods, or reduced cooperation in defense and other sectors. Such actions could negatively impact French businesses and the broader bilateral trade relationship.

Impact on Defense Industry Ecosystem

The defense industry relies on a complex ecosystem of suppliers, manufacturers, and service providers. The exclusion of Israeli firms disrupts this ecosystem, potentially affecting supply chains, production timelines, and the availability of critical components. This disruption could lead to increased costs and operational challenges for both Israeli and French companies.

The decision to exclude Israeli defense firms from Eurosatory 2024 has far-reaching economic implications. It not only affects the immediate business opportunities for Israeli companies but also strains bilateral trade relations, deters international investors, and disrupts the defense industry ecosystem. The presence of several prominent French companies in Israel and Israeli companies in France underscores the interconnectedness of the two economies. The potential economic damages, including direct financial losses, reduced technological exchange, long-term market impact, retaliatory measures, and supply chain disruptions, highlight the need for careful consideration and resolution of the crisis. As the situation continues to unfold, the broader economic consequences will become more apparent, emphasizing the importance of diplomatic and economic cooperation in resolving such geopolitical tensions.


APPENDIX 1 – Israel’s Trade with the World: A Comprehensive Analysis

Israel, strategically located at the crossroads of Europe, Asia, and Africa, has a dynamic and diverse economy. Its trade relations are crucial for its economic stability and growth. This document provides a detailed analysis of Israel’s trade with the world, focusing on total goods, trade flows, balance, and its top trading partners from 2013 to 2023. The data, sourced from the International Monetary Fund (IMF), offers insights into the trends and changes in Israel’s trade dynamics over a decade. The document includes extensive data, numbers, and projections, updated with the latest information available.

Overview of Israel’s Trade (2013-2023)

Total Goods: Trade Flows and Balance

The trade flows and balance for Israel over the period from 2013 to 2023 show significant fluctuations. The following table summarizes the key data points:

PeriodImports (Value Mio €)% GrowthExports (Value Mio €)% GrowthBalance (Value Mio €)% GrowthTotal Trade (Value Mio €)% Growth
201354,13650,134-4,002104,270
201454,4040.551,9053.5-2,499-37.6106,3092.0
201555,8852.759,52214.73,637-245.5115,4088.6
201659,3936.354,336-8.7-5,057-239.1113,729-1.5
201761,1593.053,126-2.2-8,03258.8114,2850.5
201864,8456.051,353-3.3-13,49268.0116,1991.7
201968,2815.351,7220.7-16,55922.7120,0023.3
202061,441-10.042,893-17.1-18,54812.0104,334-13.1
202176,44124.449,94916.5-26,49242.8126,39121.1
2022102,30233.868,88737.9-33,41526.1171,18935.4
202384,824-17.159,507-13.6-25,318-24.2144,331-15.7

Analysis of Trade Flows and Balance

Imports

From 2013 to 2023, Israel’s imports have shown a general trend of growth, with some fluctuations. Notably:

  • The highest increase in imports was in 2022, with a significant growth of 33.8% compared to the previous year.
  • In 2020, imports decreased by 10%, likely due to the global economic impact of the COVID-19 pandemic.
  • The period from 2013 to 2019 saw a steady increase in imports, with an average annual growth rate of around 4.8%.

Exports

Israel’s exports have also experienced fluctuations over the same period:

  • 2022 saw the highest growth in exports at 37.9%, reflecting a recovery and expansion in global trade.
  • Exports dropped significantly in 2020 by 17.1%, correlating with the pandemic’s impact on global supply chains.
  • The growth in exports in 2015 was remarkable at 14.7%, driven by advancements in technology and innovation sectors.

Trade Balance

The trade balance, representing the difference between exports and imports, has generally been negative:

  • The deficit widened considerably in 2021 and 2022, reaching -€33,415 million in 2022.
  • The highest positive balance was observed in 2015, with a surplus of €3,637 million.
  • The overall trend indicates a growing trade deficit, emphasizing the need for strategies to boost exports or manage imports more effectively.

Total Trade

Total trade, encompassing both imports and exports, reflects the overall trade activity:

  • Total trade peaked in 2022 at €171,189 million, showcasing a robust trade environment.
  • The pandemic year of 2020 saw a decline in total trade by 13.1%, but recovery was swift with a 21.1% increase in 2021.
  • The general trend over the decade has been positive, with an average annual growth rate of approximately 4.2%.

Top Trading Partners in 2023

In 2023, Israel’s top trading partners contributed significantly to its trade volumes. The following table highlights the key trading partners and their respective contributions:

PartnerImports (Value Mio €)% of World ImportsExports (Value Mio €)% of World ExportsTotal Trade (Value Mio €)% of World Trade
World84,824100.059,507100.0144,331100.0
EU2728,42533.516,69828.145,12331.3
China10,36312.23,1935.413,5569.4
USA8,3769.916,47427.724,85017.2
Switzerland4,5545.41,9783.35,1933.6
Türkiye4,2615.01,4822.55,7424.0
United Kingdom2,6903.21,7052.94,6673.2
South Korea2,3222.71,0091.73,3312.3
Hong Kong2,3162.71,2662.14,0212.8
United Arab Emirates2,1422.58801.52,7261.9
India1,9372.32,1403.64,0772.8

Analysis of Top Trading Partners

EU27

The European Union remains Israel’s largest trading partner, accounting for 33.5% of imports and 28.1% of exports in 2023. The total trade with the EU27 amounted to €45,123 million, representing 31.3% of Israel’s global trade. The EU’s strong economic ties with Israel are driven by mutual interests in technology, pharmaceuticals, and machinery.

China

China is Israel’s second-largest source of imports, contributing 12.2% to the total imports. However, its share in exports is lower at 5.4%, indicating a trade imbalance. The total trade with China stood at €13,556 million, highlighting China’s significant role in Israel’s trade landscape.

USA

The United States is Israel’s largest export market, accounting for 27.7% of total exports. Imports from the USA represented 9.9% of total imports. The strong bilateral trade relationship is driven by defense, technology, and agricultural products. The total trade volume with the USA was €24,850 million.

Other Notable Partners

  • Switzerland: A key trading partner, particularly in pharmaceuticals and financial services.
  • Türkiye: Significant trade in textiles, machinery, and chemicals.
  • United Kingdom: Important for trade in technology and professional services.
  • South Korea: Increasing trade in electronics and automotive components.
  • Hong Kong: Acts as a gateway for trade with China.
  • United Arab Emirates: Trade relations have strengthened following the Abraham Accords.
  • India: Growing trade in diamonds, technology, and pharmaceuticals.

Detailed Scheme Table

The following scheme table provides a detailed breakdown of Israel’s trade with its top partners in 2023:

PartnerImports (Value Mio €)% of World ImportsExports (Value Mio €)% of World ExportsTotal Trade (Value Mio €)% of World Trade
World84,824100.059,507100.0144,331100.0
EU2728,42533.516,69828.145,12331.3
China10,36312.23,1935.413,5569.4
USA8,3769.916,47427.724,85017.2
Switzerland4,5545.41,9783.35,1933.6
Türkiye4,2615.01,4822.55,7424.0
United Kingdom2,6903.21,7052.94,6673.2
South Korea2,3222.71,0091.73,3312.3
Hong Kong2,3162.71,2662.14,0212.8
United Arab Emirates2,1422.58801.52,7261.9
India1,9372.32,1403.64,0772.8

Future Projections and Trends

Projections for Imports and Exports

Based on historical data and current trends, the following projections are made for Israel’s trade in the coming years:

Imports

  • 2024: Expected to see a moderate growth of around 5%, driven by increased demand for technology and industrial machinery.
  • 2025-2027: Anticipated annual growth rate of 4-6%, influenced by economic stability and trade agreements.

Exports

  • 2024: Projected growth of 6-8%, supported by advancements in technology, pharmaceuticals, and defense sectors.
  • 2025-2027: Consistent growth rate of 5-7%, with increasing penetration in new markets in Asia and Africa.

Strategic Initiatives

To enhance trade balance and overall trade performance, Israel is focusing on several strategic initiatives:

  • Diversification of Markets: Expanding trade relationships beyond traditional partners to emerging markets in Asia, Africa, and Latin America.
  • Innovation and Technology: Leveraging its strong technology sector to boost high-value exports.
  • Trade Agreements: Negotiating and updating trade agreements to reduce barriers and enhance market access.
  • Sustainable Practices: Promoting sustainable and green technologies to align with global environmental standards.

Impact of Geopolitical Factors

Geopolitical developments have a significant impact on Israel’s trade:

  • Abraham Accords: Normalization of relations with several Arab nations has opened new trade opportunities in the Middle East.
  • US-China Trade Tensions: Ongoing tensions between the US and China could affect Israel’s trade dynamics, necessitating a balanced approach.
  • European Union: Changes in EU trade policies and regulations, particularly post-Brexit, may influence Israel’s trade with European countries.

Israel’s trade with the world has shown resilience and growth despite various global challenges. By focusing on innovation, market diversification, and strategic partnerships, Israel is well-positioned to enhance its trade performance in the coming years. This detailed analysis, enriched with extensive data and projections, provides a comprehensive understanding of Israel’s trade dynamics, highlighting opportunities and challenges for the future.

source data : European Commission – Directorate General for Trade – official data


APPENDIX 2 – Total Goods: EU Trade Flows and Balance with Israel

The European Union (EU) and Israel have developed a robust trading relationship over the years, marked by substantial trade flows and economic exchanges. This document provides an in-depth analysis of the trade flows and balance between the EU and Israel, focusing on data from Eurostat Comext – Statistical Regime 4. The analysis covers the period from 2013 to 2023, highlighting trends, growth rates, and sectoral contributions to trade. Additionally, it includes detailed data, numbers, and projections updated with the latest available information from the internet.

Total goods: EU Trade flows and balance, annual data 2013 – 2023 – Source Eurostat Comext – Statistical regime 4

Image : Total goods: EU Trade flows and balance, annual data 2013 – 2023 Source Eurostat Comext – Statistical regime 4

Overview of EU Trade Flows and Balance with Israel (2013-2023)

Total Goods: Trade Flows and Balance

The trade flows and balance for the EU and Israel over the period from 2013 to 2023 reflect significant variations and trends. The following table summarizes the key data points:

PeriodImports (Value Mio €)% Growth% Extra-EUExports (Value Mio €)% Growth% Extra-EUBalance (Value Mio €)Total Trade (Value Mio €)
201310,4750.615,4620.94,98725,938
201412,03414.90.715,7341.80.93,70027,768
201512,1000.60.717,62112.00.95,52129,720
201611,986-0.90.719,79712.41.17,81131,783
201713,57713.30.820,0541.31.06,47733,631
201812,472-8.10.719,421-3.20.96,94931,893
201913,0564.70.720,0753.40.97,01933,131
202011,529-11.70.719,485-2.91.07,95631,014
202112,6399.60.624,26624.51.111,62736,905
202217,49338.40.629,21520.41.111,72246,707
202315,979-8.70.625,582-12.41.09,60341,561

Analysis of Trade Flows and Balance

Imports

From 2013 to 2023, EU imports from Israel have shown varied growth patterns:

  • The highest increase in imports was recorded in 2022, with a substantial growth rate of 38.4%.
  • Imports decreased by 11.7% in 2020, reflecting the impact of the COVID-19 pandemic on global trade.
  • The average annual growth rate of imports over the decade was approximately 3.6%.

Exports

EU exports to Israel have also fluctuated during this period:

  • The highest growth in exports was in 2021, with a significant increase of 24.5%, driven by recovery from the pandemic and increased demand.
  • A notable decline in exports was seen in 2023, with a decrease of 12.4%.
  • The average annual growth rate of exports over the decade was around 4.3%.

Trade Balance

The trade balance, representing the difference between exports and imports, has generally been positive:

  • The trade surplus peaked in 2022 at €11,722 million, reflecting strong export performance.
  • The lowest surplus was in 2014, with a balance of €3,700 million.
  • The overall trend indicates a positive trade balance, demonstrating the EU’s strong export capabilities.

Total Trade

Total trade, encompassing both imports and exports, indicates the overall trade activity between the EU and Israel:

  • Total trade reached its highest value in 2022 at €46,707 million.
  • The pandemic year of 2020 saw a decline in total trade by 5.3%, but recovery was swift in subsequent years.
  • The average annual growth rate of total trade over the decade was approximately 4.5%.

Trade Flows by SITC Section in 2023

In 2023, trade flows between the EU and Israel were categorized by Standard International Trade Classification (SITC) sections. The following table provides a detailed breakdown:

SITC SectionImports (Value Mio €)% of Total Imports% Extra-EU% GrowthExports (Value Mio €)% of Total Exports% Extra-EU% Growth
Total15,979100.00.6-8.725,582100.01.0-12.4
0 Food and live animals8415.30.622.72,2558.81.4-15.2
1 Beverages and tobacco150.10.1-8.63421.30.81.5
2 Crude materials, inedible, except fuels2991.90.4-15.23391.30.6-21.1
3 Mineral fuels, lubricants, related mats1,5399.60.3-6.43791.50.3-62.0
4 Animal and vegetable oils, fats, waxes230.20.20.41600.61.7-25.1
5 Chemicals and related prod, n.e.s.3,04219.00.9-13.94,64918.20.9-8.9
6 Manufactured goods chiefly by material1,4469.10.6-8.72,79510.91.1-21.2
7 Machinery and transport equipment6,68541.80.8-11.411,19443.81.1-8.2
8 Miscellaneous manufactured articles1,91512.00.6-0.42,94711.51.0-7.9
9 Commodities and transactions n.c.e.90.10.0-84.0910.40.2-19.8
Other1661.0n.a.n.a.4311.7n.a.n.a.

Analysis of Trade Flows by SITC Section

Food and Live Animals (SITC 0)

  • Imports of food and live animals from Israel amounted to €841 million in 2023, representing 5.3% of total imports.
  • Exports in this category were significantly higher at €2,255 million, accounting for 8.8% of total exports.
  • The growth rate for imports was 22.7%, while exports declined by 15.2%.

Beverages and Tobacco (SITC 1)

  • Imports of beverages and tobacco were relatively low at €15 million, constituting 0.1% of total imports.
  • Exports in this category stood at €342 million, or 1.3% of total exports.
  • The growth rate for imports was -8.6%, and exports saw a slight increase of 1.5%.

Crude Materials, Inedible, Except Fuels (SITC 2)

  • Imports of crude materials amounted to €299 million, representing 1.9% of total imports.
  • Exports were €339 million, making up 1.3% of total exports.
  • The growth rate for imports was -15.2%, and exports decreased by 21.1%.

Mineral Fuels, Lubricants, and Related Materials (SITC 3)

  • Imports in this category were €1,539 million, or 9.6% of total imports.
  • Exports were significantly lower at €379 million, constituting 1.5% of total exports.
  • The growth rate for imports was -6.4%, and exports saw a drastic decline of 62.0%.

Animal and Vegetable Oils, Fats, and Waxes (SITC 4)

  • Imports were €23 million, representing 0.2% of total imports.
  • Exports in this category amounted to €160 million, or 0.6% of total exports.
  • The growth rate for imports was 0.4%, while exports declined by 25.1%.

Chemicals and Related Products, n.e.s. (SITC 5)

  • Imports of chemicals and related products were €3,042 million, making up 19.0% of total imports.
  • Exports were higher at €4,649 million, or 18.2% of total exports.
  • The growth rate for imports was -13.9%, and exports decreased by 8.9%.

Manufactured Goods Classified Chiefly by Material (SITC 6)

  • Imports in this category amounted to €1,446 million, representing 9.1% of total imports.
  • Exports were €2,795 million, or 10.9% of total exports.
  • The growth rate for imports was -8.7%, and exports decreased by 21.2%.

Machinery and Transport Equipment (SITC 7)

  • Imports of machinery and transport equipment were the highest at €6,685 million, or 41.8% of total imports.
  • Exports in this category were also the highest at €11,194 million, constituting 43.8% of total exports.
  • The growth rate for imports was -11.4%, and exports decreased by 8.2%.

Miscellaneous Manufactured Articles (SITC 8)

  • Imports in this category were €1,915 million, representing 12.0% of total imports.
  • Exports were €2,947 million, or 11.5% of total exports.
  • The growth rate for imports was -0.4%, and exports decreased by 7.9%.

Commodities and Transactions n.e.c. (SITC 9)

  • Imports in this category were minimal at €9 million, constituting 0.1% of total imports.
  • Exports were €91 million, or 0.4% of total exports.
  • The growth rate for imports was -84.0%, and exports decreased by 19.8%.

Other

  • Imports categorized as “Other” were €166 million, representing 1.0% of total imports.
  • Exports were €431 million, or 1.7% of total exports.
  • Specific growth rates and percentages for “Other” were not available.

Future Projections and Trends

Projections for Imports and Exports

Based on historical data and current trends, the following projections are made for EU trade with Israel in the coming years:

Imports

  • 2024: Expected to see a moderate growth of around 5%, driven by increased demand for machinery and transport equipment, and chemicals.
  • 2025-2027: Anticipated annual growth rate of 4-6%, influenced by economic stability and enhanced trade agreements.

Exports

  • 2024: Projected growth of 6-8%, supported by advancements in technology, pharmaceuticals, and machinery sectors.
  • 2025-2027: Consistent growth rate of 5-7%, with increasing penetration in new markets and sectors.

Strategic Initiatives

To enhance trade balance and overall trade performance, the EU is focusing on several strategic initiatives:

  • Diversification of Markets: Expanding trade relationships beyond traditional partners to emerging markets in Asia, Africa, and Latin America.
  • Innovation and Technology: Leveraging its strong technology sector to boost high-value exports.
  • Trade Agreements: Negotiating and updating trade agreements to reduce barriers and enhance market access.
  • Sustainable Practices: Promoting sustainable and green technologies to align with global environmental standards.

Impact of Geopolitical Factors

Geopolitical developments have a significant impact on the EU’s trade with Israel:

  • Middle East Peace Processes: Stability in the region could enhance trade flows.
  • US-China Trade Tensions: Ongoing tensions between the US and China could affect global trade dynamics, necessitating a balanced approach.
  • European Union Policies: Changes in EU trade policies and regulations, particularly post-Brexit, may influence trade relationships.

The trade relationship between the EU and Israel has shown resilience and growth despite various global challenges. By focusing on innovation, market diversification, and strategic partnerships, both the EU and Israel are well-positioned to enhance their trade performance in the coming years. This detailed analysis, enriched with extensive data and projections, provides a comprehensive understanding of the trade dynamics, highlighting opportunities and challenges for the future.

source data : European Commission – Directorate General for Trade – official data


APPENDIX 3 – Israel’s Foreign Trade: January 2024 Analysis

In January 2024, Israel’s foreign trade exhibited notable shifts in both exports and imports of goods. This analysis delves into the detailed data, trends, and economic implications, providing a comprehensive understanding of Israel’s trade dynamics. The trade deficit for January 2024 was recorded at NIS 5.2 billion, a significant improvement from the NIS 11.6 billion deficit in January 2023. All values are converted to Euros using the current exchange rate of 1 NIS = 0.26 Euros.

Trade Data Breakdown

  • Exports and Imports of Goods
    • Exports: NIS 19.2 billion (€5 billion) in January 2024, up from NIS 16.9 billion (€4.4 billion) in January 2023.
    • Imports: NIS 24.4 billion (€6.3 billion) in January 2024, down from NIS 28.4 billion (€7.3 billion) in January 2023.
    • Trade Balance: A deficit of NIS 5.2 billion (€1.4 billion) in January 2024, an improvement from NIS 11.6 billion (€3 billion) in January 2023.
    • Export to Import Ratio: 78.7% in January 2024, compared to 59.3% in January 2023.
  • Excluding Ships, Aircraft, and Diamonds
    • Exports (excluding specific categories): 76.5% of imports in January 2024, compared to 55.1% in January 2023.
    • Trade Deficit (excluding specific categories): NIS 3.2 billion (€0.83 billion) in January 2024, down from NIS 8.8 billion (€2.3 billion) in January 2023.

Economic Impact and Trends

  • Exchange Rate InfluenceThe value of the NIS relative to other major currencies weakened in January 2024:
    • 1.1% against the US Dollar
    • 1.9% against the Swiss Franc
    • 1.1% against the Euro
    • 1.3% against the Canadian Dollar
    • 1.5% against the Pound Sterling
  • Seasonally Adjusted and Trend Data
    • Exports of Goods: Increased by 4.0% annually in November 2023 – January 2024 after a 1.4% decrease in August – October 2023.
    • Imports of Goods: Decreased by 19.0% annually in November 2023 – January 2024, following a 14.6% decrease in August – October 2023.

Sectoral Analysis

  • Exports by Sector
    • Manufacturing, Mining, and Quarrying (excluding diamonds): 91% of total exports.
    • Diamonds: 7% of total exports.
    • Agriculture, Forestry, and Fishing: 2% of total exports.
    • Trend Data: Manufacturing, mining, and quarrying exports increased by 0.6% annually in November 2023 – January 2024, after a 4.1% decrease in August – October 2023.
  • Technological Intensity
    • High Technology Industries: Decreased by 13.9% annually in November 2023 – January 2024, following a 16.6% decrease in August – October 2023.
    • Medium-High Technology Industries: Increased by 13.0% annually in November 2023 – January 2024, after a 9.4% increase in August – October 2023.
    • Medium-Low Technology Industries: Increased by 2.0% annually, after a 13.3% decrease in August – October 2023.
    • Low Technology Industries: Increased by 17.1% annually in November 2023 – January 2024, following a 30.3% increase in August – October 2023.
  • Exports of Diamonds: NIS 1.3 billion (€0.34 billion) in January 2024, down from NIS 1.5 billion (€0.39 billion) in January 2023.

Imports by Sector

  • Total Imports: NIS 24.4 billion (€6.3 billion) in January 2024.
    • Raw Materials (excluding diamonds and fuels): 45% of total imports.
    • Consumer Goods: 26% of total imports.
    • Machinery, Equipment, and Land Vehicles: 14% of total imports.
    • Diamonds, Fuels, Ships, and Aircraft: 15% of total imports.
  • Trend Data
    • Raw Materials: Decreased by 13.3% annually in November 2023 – January 2024, following a 9.4% decrease in August – October 2023.
    • Investment Goods (excluding ships and aircraft): Decreased by 27.7% annually, after a 21.9% decrease in August – October 2023.
    • Consumer Goods: Decreased by 19.3% annually, following a 21.1% decrease in August – October 2023.
    • Non-Durable Goods: Decreased by 17.8% annually.
    • Durable Goods: Decreased by 18.4% annually.
  • Imports of Diamonds: NIS 1.0 billion (€0.26 billion) in January 2024.
  • Imports of Fuels: NIS 2.3 billion (€0.60 billion), a decrease of 36% relative to January 2023.

Detailed Scheme Table

ategoryJanuary 2024 (NIS)January 2024 (€)January 2023 (NIS)January 2023 (€)
Exports of Goods19.2 billion5.0 billion16.9 billion4.4 billion
Imports of Goods24.4 billion6.3 billion28.4 billion7.3 billion
Trade Balance-5.2 billion-1.4 billion-11.6 billion-3.0 billion
Export to Import Ratio78.7%59.3%
Exports (excluding specific items)76.5% of imports55.1% of imports
Trade Deficit (excluding items)-3.2 billion-0.83 billion-8.8 billion-2.3 billion
High Technology Exports-13.9% annual-16.6% annual
Medium-High Technology Exports13.0% annual9.4% annual
Medium-Low Technology Exports2.0% annual-13.3% annual
Low Technology Exports17.1% annual30.3% annual
Exports of Diamonds1.3 billion0.34 billion1.5 billion0.39 billion
Raw Materials Imports45% of total
Consumer Goods Imports26% of total
Investment Goods Imports14% of total
Diamonds, Fuels, Ships, Aircraft15% of total
Imports of Diamonds1.0 billion0.26 billion
Imports of Fuels2.3 billion0.60 billion

The detailed examination of Israel’s foreign trade for January 2024 reveals significant changes and trends in both exports and imports. The reduction in the trade deficit is a positive sign, indicating improved export performance and reduced import dependency. The sectoral analysis highlights the importance of manufacturing and technology-intensive industries in Israel’s export portfolio. Moreover, the decrease in imports, particularly in raw materials and investment goods, points to potential economic adjustments and efficiency improvements.

This comprehensive analysis, incorporating the latest available data, provides valuable insights for policymakers, businesses, and stakeholders involved in Israel’s foreign trade and economic planning.

RESOURCE : official data from – State of Israel – Central Bureau of Statistica


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