Speeches

Statements by Senior

Embassy Officials

Remarks by Ambassador Richard H. Jones
for Forbes’ 60th Anniversary event
Ramat Gan, April 14, 2008

It is an honor to be here today to help celebrate the strides that Israel’s economy has made over the past 60 years.  In less than a lifetime, Israel has made the impressive leap from developing country to a candidate for membership in the OECD with one of the consistently highest rates of growth in the world.  

The United States has been pleased to play a prominent role in Israel’s economic miracle as one of the country’s most important export markets. Since the signing of our bilateral free trade agreement in 1985, two-way trade has expanded dramatically from $4.7 billion to $28 billion in 2007.  For several years now the balance of this trade has been in Israel’s favor and increasingly so: the U.S. trade deficit with Israel reached $7.6 billion in 2007.  To restore the balance, as it prepares for OECD membership, Israel needs to address non-tariff barriers to trade, such as standards, including in agricultural trade.  We also have some work to do on Intellectual Property Rights, although I’m pleased to report that there have lately been some signs of progress in this area.  Overall, the U.S.-Israel economic relationship remains strong and I am convinced beyond a shadow of a doubt that it will continue to contribute to the prosperity of both our countries for the foreseeable future

Why am I so bullish?  One reason is that much of our trade is in sophisticated goods.  Indeed, as we saw in the film earlier, with America’s support, Israel’s talent for innovation has made it a world leader in several high technology fields.  In coming years we will build on our history of research cooperation through such entities as the Bi-national Industrial Research and Development Foundation (BIRD), the Bi-national Agricultural Research and Development Foundation (BARD) and the Bi-national Science Foundation (BSF), by launching a new bi-national alternative energy research program which is being structured as we speak to disburse up to $50 million over five years.  The research sponsored by this program will lead to valuable new technologies and help insulate our economies from price swings in increasingly volatile world emerging markets. 

 Even more than for most countries, maintaining the strength of Israel’s economy is absolutely vital to its national security.  Unfortunately, the unstable security situation that the nation faced on the day it declared its independence 60 years ago still faces Israel today.  Just as the United States under President Truman stood by Israel then, the United States, under President Bush, stands with it now.  Last summer I was pleased to take part in negotiations that culminated in an American pledge to provide $30 billion in security assistance to Israel over the next ten years.  (Talk about putting your money where your mouth is!)  Even more important than our security assistance, however, is the search for a lasting and secure peace in the Middle East.  A peaceful resolution of conflicts in the region is and will remain a major foreign policy priority of the United States.

In fact, we are now engaged in the most promising effort to reach a settlement of Israel’s conflict with the Palestinians in this decade.  The process launched at Annapolis last November is alive and well despite the determined efforts of some who would seek to mire the region in terrorism and violence.  Although most attention is being paid to the political negotiating track, an equally important component of the Annapolis process is the development of Palestinian institutions, including the institution of a healthy market economy. 

Former UK Prime Minister Tony Blair has been asked by the Quartet of international sponsors of the Annapolis process to spearhead and organize the efforts of the international community to assist in this important undertaking.  One of the projects now being developed with Palestinian Authority Prime Minister Salam Fayyad is to hold a conference for international private investors in Bethlehem in late May of this year.  I would encourage all of you to consider participating in this conference and learning about the opportunities for investment in the Palestinian territories. 

There is now a strong consensus within Israel and the international community that the creation of a viable Palestinian state through a negotiating process with Israel and full implementation of Road Map commitments by both parties is essential for the long-term security of Israelis and to address the legitimate aspirations of the Palestinian people.  To be viable, the future Palestinian state must have a strong economy.  I therefore submit that those of you who love Israel and wish its economy to flourish also have an interest in promoting the development of the Palestinian economy. 

It’s not without reason that the Israeli government has expressed its support for the conference and designated a senior official in the Ministry of Defense to oversee Israeli preparations to help make it succeed.  Such strong Israeli support will be even more important in the weeks and months after the conference as contacts made in Bethlehem ripen into real business ventures on the ground.

Again, I would like to congratulate you on this celebration of 60 years of progress and thank you for your attention.