HJS Friends of Israel Report FINAL_HJS Friends of Israel Report FINAL.qxd 06/02/2014 09:55 Page 13 ADDED VALUE: ISRAEL’S STRATEGIC WORTH TO THE EU AND ITS MEMBER STATES of trade with Israel, amounting to €4.3 billion in The Economic 2011. Some 84% of EU exports to the Jewish state are in its crucial manufacturing sector – half of them in Dimension the subset of machinery and transport equipment.72 Over the past year, a particular spike was seen in Israel’s Overview trade with Spain, and even more so with the UK. Israel is Britain’s second-largest trading partner in the Middle Europeans and Israelis alike tend to be unaware of East (after Saudi Arabia), and Britain is Israel’s the sheer scale of EU-Israel commercial ties. “There second-largest export market (after the US). 73 The is no country outside the European continent that has increase in trade with both European countries has this type of relationship that Israel has with the been prompted primarily by the chemical and ph European Union”, according to the EU’s armaceutical industries: the Israel Chemicals ex-foreign-policy chief, Javier Solana, while Brussels’ conglomerate, for example, owns potash mines in Spain ambassador-designate to Israel affirmed that “the EU and the UK, and exports agricultural chemicals has developed its relations with Israel more than any Continent-wide.74In the pharmaceutical arena, Teva– other non-European country in the world”.67 the Israeli firm that is the world’s leading maker of generic drugs – owns production facilities in Spain; the Furthermore, though the EU dwarfs Israel in UK; Germany; Italy; Ireland; and a handful of Eastern population and combined GDP, the bilateral European countries. 75 Israel’s outsized presence in relationship is neither – as those wishing to delegitimize Europe’s pharmaceutical market led to the 2010 Israel contend – lopsided nor based on charity. Rather, Agreement on Conformity Assessment and Acceptance EU-Israel ties are based on a 1994 European Council of Industrial Products (AACA), which co-ordinates decision that Israel’s high level of development means European and Israeli pharmaceutical standards (to that it should enjoy “special status”, on the basis of make for easier sale and manufacture on both sides).76 reciprocity and common interest, with the EU.68 A closer look at that economic partnership demonstrates In October 2013, European Commissioner for the strategic advantage which it yields to Europe. Industry and Entrepreneurship Antonio Tajani visited Israel, accompanied by 65 industry associations and c How Europe benefits from ompanies. A European Commission memorandum growing bilateral trade released at the visit’s end affirmed that the trip’s purpose had been to link European entrepreneurs The EU is Israel’s largest source of imports (35% of with Israel, “one of the most competitive economies its total) and second-largest destination for exports in the world”, in order to enhance European (27%), barely edged out by the United States.69 Israel, industry’s global reach.77 for its part, is a leading EU trading partner in the strategically pivotal Eastern Mediterranean. All told, opm http://www.export.gov.il/uploadfiles/09_2013/devel entsandtrendsin Israel’s trade links with the EU amounted to €29.7 israeliexport_summaryoffirsthalf2013.pdf (accessed 4 November 2013). billion in 2012, over 50% higher than its total with 72 “European Union, Trade in goods with Israel,” European Commission (2013), available at: America.70 71 The EU also enjoys a positive balance http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113402.pdf. 73 Lord Green, “Seeing for myself what has made Israel the genuine Start-Up Nation,” The JC.com, 15 March 2013, available at: http://www.thejc.com/ d-debate/analysis/103387/seeing-myself-what-has-made- 67 Lars Faaborg-Andersen, “Delegitimizing Europe?,” The Jerusalem Post, 13 comment-an israel-genuine-start-up-nation-0 (accessed 17 December 2013). November 2013, available at: http://www.jpost.com/Opinion/Op-Ed- 74 “Israel Chemicals Ltd,” Bloomberg Businessweek, available at: ntributors/Delegitimizing-Europe-331654 (accessed 18 November 2013). Co http://investing.businessweek.com/research/stocks/snapshot/snapshot_ 68 “ENP Progress Report – Israel,” EUR-Lex, 4 December 2006, available at: article.asp?ticker=ICL:IT (accessed 11 December 2013). http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SEC:2006: 75 “Trade,” Delegation of the European Union to Israel, available at: 1507:FIN:EN:HTML (accessed 4 November 2013). http://eeas.europa.eu/delegations/israel/eu_israel/trade_relation/ 69 “European Union, Trade in goods with Israel,” European Commission index_en.htm (accessed 5 November 2013). (2013), available at: http://trade.ec.europa.eu/doclib/docs/2006/ 76 “European Parliament approves EU-Israel agreement to simplify trade,” 113402.pdf, p. 9. september/tradoc_ Delegation of the European Union to Israel, 25 October 2012, available 70 “Countries and regions – Israel,” European Commission, 3 May 2013, available at: http://eeas.europa.eu/delegations/israel/press_corner/ at: http://ec.europa.eu/trade/policy/countries-and-regions/countries/israel/ all_news/news/2012/20121025_en.htm (accessed 23 December 2013). (accessed 29 October 2013). 77 “Building on long-standing ties, EU and Israel explore new oppo rtun ities for 71 “Developments and Trends in Israeli Exports: Summary of First Half 2013,” growth and innovation,” Europa, 21 October 2013, available at: http://europa.eu/ The Israel Export & International Cooperation Institute (2013), available at: rapid/press-release_MEMO-13-912_en.htm (accessed 29 October 2013). 11