While talk continues about the negative effect that the judicial reform debate is having on international business, there was no seeming impact on this past week’s US-Israel Business Summit held in Tel Aviv on Tuesday. With over $31.5 billion of trade between the US and Israel, the bilateral relationship and friendship is as vibrant today as ever.
Evidence of that was particularly strong at the summit hosted by Ernst & Young at their midtown Tel Aviv conference space. The event was produced in the name of the American State Offices Association (ASOA), the umbrella group resenting the 14 US state trade and investment offices and 8 regional representatives operating in Israel to promote business relationships between the two countries.
Partnering with ASOA were the Israel-America Chamber of Commerce (AMCHAM), Israel Export & International Cooperation Institute as well as the US Commercial Service. The Summit focused on offering Israeli companies information and guidance as they look to expand to the US market.
The program featured dynamic panels on legal, tax, and talent considerations from expert panelists: Jeremy Lustman (DLA Piper), Chezi Yehezkeli (Shinolet & Co), Amir Chenchinski (Ernst & Young), Arik Bandel (UMTB), Alan Cutter, (AC Lion International), and Sharona Mizrahi, (Blumberg Capital) along with one-on-one meetings with the state representatives present. The 268 registered guests discussed how to enhance trade and build bilateral bridges between Israel and its closest ally.
Additional sponsors and partners included DLA Piper Israel Country Group, UMTB USA, and Shibolet & Co.While a recent Bloomberg report indicated that foreign direct investment in Israel has dropped by 60% in the first quarter of 2023 compared with similar quarters in previous years, it is difficult to prove that this is solely as a result of the political challenges in today’s Israel.
With war raging in Ukraine that poses a long-term threat to the entire world, the economic warning signs coming out of China, along with inflation and democracy challenges worldwide, there are plenty of reasons why the investment community might be taking things slower than in the past.
A durable relationship
Nevertheless, the US, as Israel’s strongest ally, remains an economy of significant interest to Israel’s business community. Clearly that was the draw that brought hundreds of Israeli business people to the Summit. Business people here still believe that America is one of the most attractive markets for their products and a major continuing source of investment capital.
The bilateral relationship is further strengthened by the fact that 14 US states have chosen to place contract representatives here to promote additional bilateral business relationships. They include Arizona, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Minnesota, Missouri, New Jersey, New York, Ohio, Pennsylvania, and Virginia along with those who represent regions within America: Cedar Park (Texas), Dayton Region (Ohio), District of Columbia (City of Washington), Fairfax County (Virginia), Michigan-Israel Business Accelerator, California-Israel Chamber of Commerce (CICC), 412x972 Pittsburgh Israel Innovation, and Global St. Louis (Missouri). This is a higher number than operate in most countries around the world and speaks to the importance of the relationship to both countries.
The $19b. in Israeli exports to the US represents 25% of all of Israel’s exports and makes America the country’s largest trading partner. The participation in this event gave testimony to the importance of the bilateral relationship and the hope that it will continue to grow in the future as it has in the past.
The writer is the CEO of Atid EDI Ltd., a Jerusalem based international business development consultancy, founder and chair of the American State Offices Association, a board member of the Israel-America Chamber of Commerce, and former national president of the Association of Americans and Canadians in Israel.