U.S. Treasury and Israeli Finance Minister Agree to Strengthen Economic Dialogue

In a significant step towards bolstering bilateral economic ties, U.S. Secretary of the Treasury Scott Bessent and Israeli Minister of Finance Bezalel Smotrich held a highly impactful meeting on March 5, 2025, to discuss the ongoing economic partnership between the United States and Israel. The joint statement released following the meeting underscored the strong and enduring commitment of both nations to a strategic economic partnership, with a focus on deepening economic cooperation, fostering innovation, and strengthening financial and trade ties.

The Secretary and the Minister agreed to strengthen dialogue mechanisms to enhance collaboration in key areas, including economic policy, technology, and financial regulation. This commitment to advancing shared economic interests comes at a critical time, as both nations seek to shape a new strategic economic future that reinforces American global leadership and Israel's role as a key economic partner.

The U.S.-Israel economic and commercial relationship is already robust, with bilateral trade of close to $50 billion in goods and services annually. Since signing the U.S.-Israel Free Trade Agreement (FTA) in 1985, U.S.-Israel bilateral goods and services trade has grown eight-fold, making the United States Israel's largest trading partner. This historical growth indicates the potential for further expansion through strengthened dialogue and collaboration.

The annual meeting of the U.S.-Israel Joint Economic Development Group (JEDG) serves as a testament to the long-standing cooperation between the two nations. This dialogue provides a platform for discussing economic initiatives and further strengthening their respective economies. Additionally, the U.S. and Israel coordinate scientific and cultural exchanges through various foundations, such as the Binational Science Foundation (BSF), the Binational Agricultural Research and Development Foundation (BARD), and the Binational Industrial Research and Development Foundation (BIRD). These exchanges facilitate important academic progress and benefit both countries' scientific and economic development.

In conclusion, the strengthened dialogue between the U.S. Treasury and Israeli finance minister is expected to have a positive impact on the bilateral trade and investment relationship in the long term by fostering deeper economic cooperation, innovation, and mutual prosperity. By working together to advance shared economic interests, the U.S. and Israel can create a more resilient, innovative, and mutually beneficial partnership that drives growth and prosperity for both nations.