Israel's Business Relationship With the USA

Relations between the US and Israel are a determining factor in Middle East policy, and the US Congress has put a lot of importance on maintaining close business ties. The United States expresses its support for Israel through foreign aid- Israel gets almost three billion dollars per year in refugee assistance, economic and military grants, and other help. Congress is monitoring the aid situation along with other issues.

US/Israeli business relations have grown from the US' initial policy of support for a Jewish homeland, to a partnership that connects Israel's need for economic and military aid with the US' need to maintain its interests in that region of the world. Some people have questions about the US' commitment to Israel, and they say that the US is biased against other Arab states. Others disagree, saying that Israel is an important ally and that close business relationships further both countries' interests.

The US supported the joint PLO/Israeli Declaration of Principle, which was signed in 1993, and subsequent agreements in 1994, '95, '97, and '98. Israel was officially recognized as an independent state in 1948; past presidents have supported the idea of the State of Israel.

After the end of World War II, the US' support for a Jewish homeland took on even more significance because there were so many Jewish refugees and Holocaust survivors. Support among the Jewish and Christian communities in the United States did a lot to foster business relations between the two countries. Today, Israel is identified as a democratic society that has liberal but humanitarian values, surrounded by hostile and recalcitrant Arab countries.

In years gone by, the US' interests in the Middle East included the prevention of Soviet encroachment, ensuring that industrialized countries had adequate access to the oil in the area, and ensuring the security of Israel. US/Israel business relations have included the provision of military forces by the United States.