Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump meets on Monday evening in the White House, a few days after Trump sparked a storm when he declared his cover plan.
Netanyahu accompanied the economic adviser, Prof. Avi Simhon. On the other hand, senior Treasury officials (including Minister Bezalel Smutrich) did not fly to Washington, although they are confident in preparing for the new customs and handling the consequences of the business sector. The Treasury will try to convey their messages through the economic axis of the Washington office, Noah is cold.
In Israel were surprised
Trump cast a heavy customs from Israel – 17%. Factors in the Ministry of Finance, the economy and the senior executives were surprised by the relatively high rate, close to the customs imposed on the EU (20%) and high from countries such as Norway and Venezuela who is considered an enemy, Turkey, the UAE and the Saudi Arabia. As early as last week, when waiting for the president’s declaration, the government in Israel announced the lowering of all the tariffs imposed on American products in order to soften the blow. But Trump, as usual, surprised senior executives.
There are now various factors in the economy and government contacts with the Trump administration’s associates with the aim of exceeding diamond exports responsible for half the trade deficit (about $ 4 billion) from decree, which may reduce customs under the threshold 10%, or at least compare it to the rest of the world who did not receive any special customs. At the same time, the Ministry of Economy has been working closely since the decision with officials in the US Department of Trade in order to formulate the way of taxation and may be relieved in the way an Israeli product will be considered, in a way that will allow manufacturers to transfer the goods through third party states and may even receive relief.
There is still no precedent on the subject
The biggest achievement in this area that can bring Netanyahu returning to Israel, of course, is a sweeping exemption from the new cover plan. It is still unclear whether such an achievement is really possible, mainly because Netanyahu is the first of the heads of countries to come to Trump on the tariffs. That is, there is still no precedents that can be deduced.
Netanyahu comes to Trump with some fresh arguments in his mind: The local government has announced the cancellation of all the quotas in the US, and expanded the import reform “What is good for Europe – good to Israel” so that you also recognize an American gift. The American industrialists provide an advantage for European products in the Israeli market.
The Ministry of Finance estimates that these steps may help contacts with the US administration. According to the information by the Treasury, Americans are open to the negotiations with various countries to lower the quotas to a minimum threshold of 10%. And in any case, in contrast to the EU and other countries, Israel is certainly not intending to impose retaliation on American products.
This is a very small price to pay from Israel: 99% of American goods are currently exempt from customs for trade agreements between the countries, and the import reform from Europe anyway, he encompassed the original formula anyway, according to Smutrich, 99% of American products to export – so it is mainly a statement of good intentions from the Israeli government.
In the face of the resistance of the EU and countries around the world to the cover plan, Netanyahu can try to convince Trump to put Israel before many as a “sample state.” I mean, win her an exemption and broadcast a message to the world: Want relief? Immediately implement our review.
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