Israel has announced the abolition of customs duties on all goods imported from the United States, its largest trading partner, Anadolu Agency reports.
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Details
According to a joint statement from the Israeli Prime Minister's Office, the Finance Ministry and the Ministry of Economy and Industry, the government led by Prime Minister Benjamin Netanyahu has decided to lift all customs duties on goods from the United States.
The statement recalled that, in accordance with the free trade agreement signed with the United States in 1985, Israel currently does not impose customs duties on most goods imported from that country (about 99 percent).
The statement said the tax exemption on products imported from the United States would begin with a limited number of items in the food and agricultural categories and would then be extended to all goods, and claimed that the elimination of customs duties on food and agricultural products would reduce the cost of living for the Israeli people.
Israel's goods exports to the United States in 2024 amounted to $17.3 billion, while services exports amounted to $16.7 billion.
Commenting on the decision to lift tariffs on American goods, Prime Minister Netanyahu said: “Lifting tariffs on American goods is an additional step in the decade-long policy of the governments I have led to open the market to competition, diversify the economy and lower the cost of living. In addition to the economic benefits for the market and the citizens of Israel, these efforts will allow us to further strengthen the alliance and ties between Israel and the United States.”
Finance Minister Bezalel Smotrich noted on this occasion: “The exemption from customs duties will be beneficial for the State of Israel. It is in line with the government's policy of combating the rising cost of living. It will even increase competition in the food sector.”
It is noteworthy that this move by Israel was made shortly before the US decision to impose retaliatory tariffs came into effect.
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