A report issued last week by the Federation of Israeli Chambers of Commerce (FICC) indicates that Israel’s foreign trade with Europe and Asia rose in the period 2002-05. On the other hand the report disclosed that trade with the US in the same period decreased.
The report noted that the decline of trade with the US was due to the rise of the Euro currency against the dollar and the low production costs in Asian countries.
Federation of Israeli Chambers of Commerce director of the economics department Yisraela Mani said that Israel’s foreign trade in 2002-05, excluding diamonds, rose by 38%, or $17 billion, to $62 billion. Exports rose by 40%, or $7.6 billion, to $26.6 billion while Imports rose by 36%, or $9.4 billion, to $35.4 billion.
Mani also noted that the EU’s proportion of Israel’s total foreign trade was down from 37% in 2002 to 35% in 2005.
EU’s proportion of Israel’s imports fell from 41% in 2002 to 37% in 2002, but the EU’s proportion of Israel’s exports rose from 32% in 2002 to 34% 2005, to $9 billion.
As far as the USA is concerned Mani noted that the US’s proportion of Israeli foreign trade fell from 26% in 2002 to 21% in 2005. The US’s proportion of Israeli imports fell from 22% in 2002 to 15% in 2005. The US’s proportion of Israeli exports fell from 31% in 2002 to 28% in 2005.
Asia’s proportion of Israel’s foreign trade was up from 14% in 2002 to 17% to 2005. Asia’s proportion of Israel’s imports rose from 14% in 2002 to 18% to 2005. Israeli exports to Asia was up by 73%, or $2.7 billion, to $6.4 billion. Mani emphasized that in terms of growth, China can be singled out.
Israel's bilateral trade with China was $1.3 billion, which accounted for over 20% of all Israeli imports from Asia.
Asia’s proportion of Israel’s export was unchanged at 15% between 2002 and 2005, despite a 44% growth in exports, or $1.3 billion, to $3.9 billion. Exports to China was up by 71%.