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DECLASSIFIED: "Probable Economic Effect of Providing Duty -Free
Treatment for Imports from Israel"
In the news:
2/20/2023
AIPAC Israeli Economic Espionage Against US Hits $366 Billion
The Interagency Security Classification Appeals Panel
(ISCAP)
ordered the US Trade Representative to declassify and release most
of a secret 300 page trade document.
In 1984 US exporters were urged to submit "confidential
business information" (CBI)
about their prices, market share, internal costs and market strategy to
the International Trade Commission. The USTR guaranteed confidentiality
and compiled the sensitive data into a classified report for use in negotiating
the US-Israel Free Trade Agreement.
The Israeli government
covertly obtained the
classified USTR report and passed it to the American Israel Public
Affairs Committee to use in lobbying, the development
of counter talking-points and a public relations
campaign.
Declassified FBI investigation files
in the petition reveal AIPAC's legislative director made illicit
duplications before returning the report by order of the USTR. The FBI
interviewed Israeli Minister of Economics Dan Halpern.
Halpern claimed he obtained the classified document,
without disclosing the source, and gave it to AIPAC.
AIPAC and the
Israeli government likely wanted the secret file to ward off intense US
industry efforts to either receive reciprocal market access, or redirect
US trade negotiations toward larger, more developed markets that offered
greater return benefits. Israel and AIPAC were particularly interested
at the time in
permanently "locking in" zero tariff access to the US market which was
tentative and subject to possible future cancellation under the
Generalized System of Preferences.
Stolen Trade Files
| Document |
Probable Economic Effect of Providing Duty
-Free Treatment for Imports from Israel |
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2010-074_1.pdf
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Preface, table of
contents, executive
summary. "Trade does not exist between
Israel and its immediate neighbors because of its geopolitical
situation. Instead Israel has found its major export
markets in the European Community (EC)
and the United States." US accounted for 22% of Israeli
exports in 1982. |
|
2010-074_2.pdf
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"U.S.
producers and processors of tomatoes oppose the granting of
duty-free tariff treatment to products from Israel because such
treatment would accelerate the growth of canned tomato imports
(which are already on the rise) and further reduce the demand
for domestic products, resulting in a decline of U.S. production
, sales and employment." Citrus fruit and
fruit product producers in Florida, California and Arizona
oppose the proposed free-trade agreement with Israel. "Domestic producers state that the free-trade agreement will
establish a devastating precedent for the creation of future
free-trade agreements with other countries...The free-trade
agreement will permit Israel to hold a tremendous advantage in
domestic markets developed by U.S. producers and will not expand
U.S. agricultural exports to Israel, according to the
producers." |
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2010-074_3.pdf
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"The government of Israel
price-support program for processing tomatoes, providing a
guaranteed minimum price to processors for their output, along
with the devaluation of the Israel Shekel in 1983, has added to
the competitive strength of the imported canned tomato products
from Israel." "The granting of duty-free status to
imported tomato products from Israel would most likely cause a
significant adverse effect on domestic tomato growers and
processors due to rising imports." |
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2010-074_4.pdf
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"Productivity in Israel's
apparel industry is, reportedly, lower than in the US apparel
industry; productivity per hour in terms of U.S. dollars in 1982
averaged $11.65 in the U.S. industry compared with $4.89 in the
Israel industry." |
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2010-074_5.pdf
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"The Israel chemical industry
began in the early 1920's when a small plant was started to
produce potash and bromine from the Dead Sea...Israel ranks as
the second largest ..Exports of chemicals from Israel have also
been enhanced as a result of direct support from the Government
of Israel ..." "Data submitted by the interested parties show
that the average manufacturing cost of Israel bromine is 12
cents per pound compared with 26 cents per pound for the three
U.S. producers." CBI "Diamonds exports amounting to 5%
(approximately $1.2 billion) of the Gross National Product in
1982...The Israel diamond industry accounts for more than
one-half of the international trade in cut and polished diamonds
and the industry is currently expanding into other precious and
semiprecious stones..." |
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2010-074_6.pdf |
"Certain U.S. producers of
telecommunications equipment and electronic components have
expressed general opposition to the proposed duty-free treatment
for imports from Israel...U.S. producers believe that Western
European firms will migrate to Israel and be positioned to
export their merchandise to the United States." "Price has
played a key role in Israel's exporting success. The
duty-free treatment accorded most Israeli jewelry imports into
the United States has been the primary advantage. Since
the inception of the GSP program in 1976, on average of 97
percent of jewelry imports from Israel were duty-free."
"Opposition to the duty-free tariff treatment for jewelry was
voiced by the largest national jewelry trade association and
several domestic producers...Support for the elimination of
jewelry tariffs came from an importer and the American Israel
Public Affairs Committee." "The implementation of this proposal
would eliminate uncertainty about the future of the GSP program,
a program which is the key to Israel's competitiveness in the US
market." |
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2010-074_18.pdf
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Alphabetical Index for
Commodity Groupings |
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