New Agricultural Trade Agreement between Israel and the US

A breakthrough has been achieved in the negotiations between Israel and the United States. The Foreign Trade Administration in the Ministry of Economy and Industry and the Ministry of Agriculture and Food Security, after comprehensive professional work, have reached an agreement with the Trump administration on a permanent trade agreement in agriculture. This agreement will replace the temporary one from 2004 and will become a central basis in a much broader course of new trade relations between the countries. The agreement will come into effect on January 1, 2026.

The ATAP (Agreement on Trade in Agricultural Products) that was signed replaces the temporary trade agreement between the countries and is designed to ensure the preservation of local production in each of the countries and to strengthen food security. This is a first step towards signing a comprehensive trade agreement with the United States, in which tariffs will be reduced reciprocally, trade barriers will be removed, and sectoral cooperation will be expanded - a move that will increase trade and strengthen the entire Israeli economy.

The signing this evening of the agreement creates a permanent and clear framework, ensuring that changes in the food market will be gradual, in a way that allows Israeli agriculture to prepare and will not lead to a sharp and rapid market opening that could destroy agricultural sectors. The relationship system will be based on the principles of the agreement, will ensure stability in the milk market and will prevent the need for point initiatives that could undermine the milk market and cause much more serious consequences - and replace them with a balanced, responsible, and predictable policy.

As part of the agreement, Israel will grant duty exemption to about 300 customs items in the food and American agriculture sector - some immediately, and some gradually over the next decade - until the full transition to duty-free imports from the US. The implication for the public: beef, chicken and lamb, dairy products, eggs, fresh and frozen vegetables and fruits, oils, juices, and more - will enter Israel duty-free or with duty-free tariffs and will help reduce prices and increase competition.

In parallel, Israel and the US continue to negotiate benefits for Israeli exports in order to restore a competitive advantage to local exporters in the American market and to strengthen the position of Israeli produce in the international arena. Today, 70% of Israeli goods exports to the US are subject to new tariffs - and the reliefs under negotiation are expected to bring significant news to the industry.

In order to prepare for the increasing competition, the Ministry of Economy is working in collaboration with the Ministries of Agriculture and the Prime Minister, to formulate a national support plan for the agricultural sector - including innovative solutions, advanced technologies, and artificial intelligence, which will increase production efficiency and improve the resilience of Israeli agriculture in the future.

Minister of Economy and Industry, Nir Barkat: "The new agreement is a significant step towards reducing the cost of living in Israel and strengthening strategic ties with the US - our most important economic and political partner. We have managed to create a balanced framework that will increase competition, lower prices, and give the Israeli export a renewed advantage in the American market. At the same time, we are investing heavily in Israeli farmers, in order to maintain food security, strengthen settlement, and maintain borders".

Minister of Agriculture and Food Security MK Avi Dichter: "Increasing quality agricultural exports means more quality and more available local produce. In the anti-Israeli reality in countries that were once friendly and have become hostile, the US is an important anchor for Israeli food security. At the same time, we must identify the opportunities, in order to implement the government's decision to increase agricultural production by a third in the next decade. The important agreement with the US comes just to ensure this principle - a trade agreement that will ensure full shelves here, alongside significant support for blue and white agriculture and food security".

The US is Israel's largest trading partner: in 2024, the volume of goods exports to the American market stood at $17.3 billion, and services exports at $16.7 billion. Imports from the US stood that year at $9.3 billion in goods and $4.8 billion in services.