The U.S. was the first country to recognize Israel as a state in 1948, and the first to recognize Jerusalem as the capital of Israel in 2017. Israel has long been, and remains, America’s most reliable partner in the Middle East. Israel and the United States are bound closely by historic and cultural ties as well as by mutual interests. The U.S. is committed to supporting the parties in efforts to reach a lasting, comprehensive peace agreement that offers a brighter future to both Israel and the Palestinians.
U.S. Assistance to Israel
The U.S.-Israel bilateral relationship is strong, anchored by over $3 billion in Foreign Military Financing annually. In addition to financial support, the U.S. participates in a high level of exchanges with Israel, to include joint military exercises, military research, and weapons development. Through the Joint Counterterrorism Group and a semi-annual Strategic Dialogue, the U.S. and Israel have enhanced their cooperation in fighting terrorism.
Bilateral Economic Relations
The U.S. is Israel's largest single trading partner. The top five U.S. exports to Israel are: diamonds, semiconductors, civilian aircraft, telecommunications equipment, and agricultural products. The top five U.S. imports from Israel are: diamonds, pharmaceutical products, semiconductors, medicinal equipment, and telecommunications equipment. The U.S. and Israel have had a free trade agreement since 1985, serving as the foundation for expanding trade and investment between the two countries by reducing barriers and promoting regulatory transparency.