Economy and Tourism

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Written by Economy Ministry

Published: 28 June 2015

MINISTRY OF ECONOMY SIGNS COOPERATION AGREEMENT WITH LATIN AMERICA'S INTER-AMERICAN DEVELOPMENT BANK

Chief Scientist at the Israeli Ministry of Economy, Avi Hasson, signed a cooperation agreement with the Inter-American Development Bank (IDB) - the largest investment authority in Latin America and the Caribbean Islands * The bank funds projects in Latin American and Caribbean countries at an annual rate of $12 billion * The agreement will open new business opportunities for Israeli companies in Latin America

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Israeli Minister of Economy Aryeh Deri: "Diversifying destination markets is a national endeavor for the State of Israel. In the world of new developing markets it is crucial for Israel to succeed. The agreement is an important step for promoting economic relations, for opening new business opportunities and for increasing Israeli exports. The State of Israel must diversify its export destinations and economic activity all around the world."

Avi Hasson, Chief Scientist at the Israeli Ministry of Economy: "The Chief Scientist's activity in the area focuses on creating opportunities to effectively commercialize innovative solutions adapted to Latin American markets. Implementing the agreement will give Israeli companies access to partners in R&D and trade in the region."

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JERUSALEM – 29th June 2015. Chief Scientist at the Israeli Ministry of Economy Avi Hasson signed a cooperation agreement with the Inter-American Development Bank (IDB) recently. The agreement will open new business opportunities for Israeli companies in Latin America.

The Inter-American Development Bank is the largest investment authority in Latin America and the Caribbean Islands. There are 48 member states in the bank, including Israel. The bank funds projects in Latin America and the Caribbean Islands to the tune of $12 billion annually.

The agreement was signed in line with the government's policy to strengthen trade relations with Latin American countries. The government authorized the Chief Scientist to sign the agreement with IDB, realizing that this institution will open opportunities for Israeli companies on the continent.

Several weeks ago the Office of the Chief Scientist at the Israeli Ministry of Economy, MATIMOP (the international branch of the Office of the Chief Scientist on R&D) and the Foreign Trade Administration hosted a delegation of senior officials from the bank, who made a first visit to Israel to discuss with the chief scientist opportunities for involving Israeli companies in projects funded by the bank.

Among the concepts discussed: Establishing a joint $5 million fund for subsidizing innovative projects involving Israeli companies in Latin America, assistance from the bank in making Israeli technologies accessible to organizations in Latin American countries, helping Israeli companies get involved in development programs that are funded by the bank and funding industrial R&D cooperation with a joint budget from the bank and the Latin American countries with which the Chief Scientist has signed bilateral agreements.

The new agreement constitutes a significant step toward upgrading the Chief Scientist at MATIMOP's activity in the Americas, a process which started two years ago. Cooperation programs with the Americas are run with the assistance and coordination of the Foreign Trade Administration at the Israeli Ministry of Economy, the trade attachés in Latin American countries, the Foreign Ministry and embassies, and of course, local partners in the various countries in which activities take place.

The Chief Scientist at the Israeli Ministry of Economy has recently announced that a program for subsidizing the adaptation of products to all Latin American countries will be expanded; the program gives Israeli companies the possibility to receive grants from the Chief Scientist for the purpose of adapting existing products to the demands of the Latin American market (including establishing pilot programs, adaptation to local regulations, reducing manufacturing costs etc.)

Israeli Ministry of Economy data shows that Israeli exports to Latin America in 2014 stood at $2.53 billion (excluding diamonds). The field of machines and mechanical devices was leading the export branch with 39.7% of all exports, followed by chemicals (20.1%), then plastics and rubber (6.3%). Brazil is Israel's main export destination in Latin America: In 2014 exports reached $915 million, totaling 36.1% of all Israeli exports to this region. Mexico, Costa Rica, Colombia and Chile are the next most significant export destinations after Brazil.

Israel's network of trade agreements with Latin America

Mercosur
Israel's trade agreement with countries which are members of the South American joint market (Mercosur) went into effect on June 1 2010 (Brazil, Uruguay, Paraguay), and on September 9 2011 with Argentina. Israel is the only country outside Latin America that enjoys a free trade agreement with Mercosur states. Since the agreement became effective, two conferences took place where senior officials from both sides participated and discussed increasing trade. Another conference is expected this year.

Mexico
On July 1 2000 a free trade agreement between Israel and Mexico entered into effect. The agreement promises fair competition for Israeli exporters, mainly against competing exporters from the US, who enjoy free access to the Mexican market due to the NAFTA (North American Free Trade Agreement, involving the US, Canada and Mexico).

Inter alia, the agreement between Israel and Mexico regulates competition and the rules for resolving disputes. A joint commission was established to oversee the implementation and promotion of the agreement and joint committees of experts were established on source regulations, customs procedures and other issues pertaining to bilateral trade. A joint conference is expected to take place this year.

Colombia
Negotiations between Israel and Colombia on free bilateral trade were concluded in September 2013 and confirmed shortly thereafter by the Israeli government. An agreement is now pending approval by the Colombian government and will then enter into effect.

Panama
A negotiation on free trade between the two countries is currently underway. In July, the third round of talks is expected to take place in Israel. Another fourth round will take place before the agreement is finalized.

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Written by Headline

Published: 01 April 2015

THIRD INTERNATIONAL AGRIVEST CONFERENCE TO SHOWCASE POTENTIAL FOR INVESTMENT IN AGRICULTURAL TECHNOLOGY

AgriVest, a partnership between Israel’s Ministry of Economy, Trendlines Agtech and GreenSoil Investments to be held at Weizmann Institute of Science on 27th April 2015

[JERUSALEM – 30th March 2015] The third international AgriVest conference, an initiative of Invest in Israel, the investment promotion center at the Israeli Ministry of Economy, the Trendlines Group and Trendlines Agtech and GreenSoil Investments, will take place at the Weizmann Institute of Science on April 27 2015.

During the conference, which serves as a unique platform for meetings between potential investors and key executives in the global agricultural industry, Israeli startups will present their finest in agritech innovation to hundreds of professionals, government officials, businesspeople, scientists and leading investors from Israel and abroad.

The growing need and demand for food security, together with the challenges of creating a sustainable, eco-friendly agriculture, constitutes fertile ground for development and innovation in agritech. The growing awareness around the world is that the only way to overcome the gap between supply and demand is by using new and advanced technologies which can offer solutions to improving the chain of agricultural production and food supply.

During the conference, two panels will feature senior agritech officials from Israel and the world: The industry panel moderated by Eyal Lipetz-Eliassi, DuPont, includes Sam Fiorello, Danforth Plant Science Center, Ofer Haviv, Evogene, Pam Marrone, Marrone Bio Innovations, Barry J. Schindler, Greenberg Traurig, and Alexander Wigelmann, KWS SAAT. Adam Anders, Anterra Capital, Dror Berman, Innovation Endeavors, Dan Hodgson, Linn Grove Growth Fund, Arama Kukutai, Finistere Ventures fund, Michael Lee, Syngenta Ventures, and Jinesh Shah, Omnivore Partners will participate in the investment panel moderated by Gideon Soesman, GreenSoil Investments.

The focus of the event will be a presentation by 12 selected Israeli startups*, who will show their finest in the Israeli agricultural industry to investors from Israel and the world. The companies were selected by a professional, independent commission headed by Chief Scientist at the Ministry of Agriculture Avi Perl, from more than 40 companies that competed for the privilege of presenting at the conference. They will be graded by the participants and at the end of the day the leading company will be awarded a prize presented by Oded Distel, Director of Invest in Israel at the Israeli Ministry of Economy and Dr. Nitza Kardish, CEO of Trendlines AgTech.

Oded Distal, Director of Invest in Israel at the Israeli Ministry of Economy added: “The Ministry of Economy is delighted to once again be showcasing some of the most exciting and innovative Israeli agtech companies at AgriVest. We have seen the value that this event has had for Israeli companies in the past and hope that this year will result in positive relationships being developed between companies, investors and government officials both in Israel and around the world”.

Dr. Nitza Kardish, CEO of Trendlines Agtech, said: "In recent years the global challenges of supplying food for a growing population are getting worse, and demand is on the rise. Agricultural technology presents the infrastructure for resolving the very serious issue of world hunger. Israel can and needs to present the world with solutions, including innovative developments which fulfill the future needs of global agricultural markets. We have the tools, the knowledge and the ability to lead development of technological research in agriculture, and to realize the possibilities of this field as a successful export industry. The AgriVest conference is a window of opportunity and a platform for meetings between investors and entrepreneurs. There is huge interest around the world in Israeli developments and they carry significant economic potential, as well as benefits for Israel's global image."

Gideon Soesman, Co-Founder and Managing Partner, GreenSoil Investments remarked: “AgriVest showcases technologies that will enable us to produce unique foodstuffs, additives, seeds and agricultural products to combat the stress on our dwindling natural resources. Investing in new crops, treatment methods, waste reduction and yield enhancement will provide solutions to the world’s food crisis and can deliver sizable returns to investors.”

Raphael Meisner, CEO of Rootility, winner of AgriVest 2013: "AgriVest was a perfect platform for us - we presented our company, met with investors and created strategic ties."

AgriVest takes place the day before Agritech - the International Agriculture Exhibition and Conference - scheduled for April 28 to 30, 2015, in Tel Aviv. Agritech is one of the world’s leading conferences in the field of agricultural technologies. Agritech features hundreds of Israeli agritech developments, from greenhouses and irrigation to water management and dairy farming. In 2012, 8,100 foreign visitors attended Agritech.

* The companies featured in this year's conference are: BioFishency, CropX, DouxMatok, Ecofer Fertigation, EQUInom, FuturaGraft, Groundwork BioAg, Hinoman, Phenome Networks, Saturas, Valentis Nanotech and VIBE Technologies.

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Written by Ministry of Economy

Published: 13 May 2015

Israel and Germany signed an agreement this week for the purchase of four corvettes for the Israeli Navy * German Delegation to Israel – including naval officers, senior Defense Ministry officials and representatives of ship manufacturer TKMS – ThyssenKrupp – arrived in Israel for signing ceremony * As part of deal, TKMS made commitment with Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry of Economy for reciprocal purchasing, including direct investment in Israeli industry of NIS 700 million

JERUSALEM – 12th May 2015 – ThyssenKrupp is a multi-disciplinary concern in the metal production sector. The group produces metal (40%), parts for the auto industry, establishes chemical plants, manages the TKMS shipyard and is involved in other activities. The company employs 160,000 people around the world, 60% of them outside Germany. The company's revenue for 2014 stood at €40 billion. The company invests about €1 billion annually in R&D, half in projects outside Germany.

In 2006, the Israeli government signed a deal with the German manufacturer to purchase dolphin-type submarines. Following the transaction, TKMS committed to a reciprocal purchasing agreement worth 40% of the Israeli financing in the deal, totaling NIS 1.8 billion (reciprocal purchasing worth NIS 740 million). An examination by the Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry Of Economy showed that until now, the company has not fully realized this commitment.

In light of this, the division demanded - even at early stages of the negotiations - to discuss widening the company’s reciprocal purchasing agreements and its future commitments in the framework of the new deal.

Director of the Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry Of Economy, Ms. Ziva Eger, was determined to fully realize the existing commitment, to create a larger commitment from the company for reciprocal purchasing in Israel and to redirect some of the commitment expressly toward direct investment in Israeli industry. This, to maximize the gain for the Israeli economy and the local labor market.

As part of the outline agreement with the company, the following was achieved:

* TKMS committed to a reciprocal purchasing agreement worth 50% of the new deal - c. NIS 700 million; this in comparison to the previous commitment in which reciprocal purchasing agreement stood at 40%.

* The Division for Foreign Investment and Industrial Cooperationand TKMS will jointly examine the viability of jointly investing in research and development, establishing a manufacturing facility and converting some of the reciprocal purchasing commitment to capital investment; this in comparison to the previous deal in which TKMS committed to a reciprocal purchasing agreement only.

Director of the Division for Foreign Investment and Industrial Cooperation at The Israeli Ministry Of Economy, Ms. Ziva Eger said: "The Israeli Ministry of Economy, with the backing and cooperation of the Israeli Ministry of Defense and the Israeli Navy, managed to bring to the negotiating table a draft that turns defense acquisitions into cooperative ventures and economic development. Expanding the economic activity of TKMS in Israel is a breakthrough in trade, economic and research cooperation between the countries. We operate according to the policy set by the ministry to encourage small and medium-sized factories and to strengthen Israel’s peripheral communities. The cooperation with TKMS is an example of the importance of reciprocal purchasing agreements for the Israeli economy."

Director General of the Israeli Ministry of Economy, Mr. Amit Lang said: "The Israeli expenditure on national security injects money into Israeli industry. We have begun a move that turns a standing commitment into direct investment in Israeli industry, based on a detailed plan with a set timetable. This is excellent news for Israeli industry and for the Israeli job market. It also shines a positive light on Israel's economic and security cooperation with Germany, countries marking 50 years of diplomatic relations this year."

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Written by Ministry of Economy

Published: 12 March 2015

Israel-Trade.Net is Virtual Information Sharing Center And Knowledgebase, Allowing Industrialists To Network With Foreign Trade Administration Decision Makers Regarding International Trade And Investments

JERUSALEM – March 11h, 2015 – Israel's economy is one of the most open to international trade in the world. Exports and imports constitute two-thirds of the gross domestic product. Therefore, decisions on foreign trade policy can have a tremendous impact on the economy and even on day-to-day life. In light of the importance of international trade and a policy to increase transparency in the Ministry of Economy's decision-making process, the Foreign Trade Administration (FTA) at Israel’s Ministry of Economy has launched a website where industrialists can engage in dialogue with ministry officials on issues of foreign trade.

Ohad Cohen, Head of the Foreign Trade Administration, noted that the administration is in constant contact and consultation with economic organizations such as the Israel Manufacturers Association, The Israeli Chamber of Commerce and the Israel Export Institute. “Nevertheless, it is important to create additional mechanisms that will allow as many relevant parties in industry to be directly exposed to the issues in which the ministry is involved. The new platform allows decision makers to be in direct dialogue with all parties in the country involved in industry and to remain attentive to their needs as they navigate the complex issues influencing the ongoing agenda of Israeli foreign trade. The ability to reach industrialists, hear new ideas and be directly exposed to their daily activities will help us deal with the complex challenges of the international trade network, where one must regularly exchange information to keep abreast of new developments."

Through this new platform, FTA officials seek to hear out industrialists and examine the needs of the business community involved in international trade (importers, exporters, industrialists, service companies, etc.), as well as to examine the possible influence of different policy initiatives related to international trade on the local market.

The website will be dynamic and the issues discussed will change according to the activity of the FTA.

The website became operational during the past month. The first issues open for discussion include:

* The free trade agreement between Israel and Panama

* A new trade agreement canceling customs on products which contribute to the environment

* Appropriate business conduct throughout the supply network in the field of agriculture (in cooperation with the OECD)

To the website

The Foreign Trade Administration (FTA) at the Israel Ministry of Economy is the government authority entrusted with formulating and leading Israel's foreign trade policy. The administration aims at increasing the competitiveness of Israeli industry while reinforcing Israel's industry and economy as an international brand, highlighting innovation, creativity and originality as hallmarks of the Israeli economy. The FTA is responsible for Israel's trade policy vis-a-vis other global economies and is in charge of formulating cooperation and free trade agreements. The FTA operates a network of 41 trade attachés in financial capitals around the world to help Israeli companies interested in penetrating these foreign markets. In addition, the FTA assists exporters with various types of funding and subsidies.