the ministry of industry, trade and labor, foreign trade administration Добро...
TRANSCRIPT
The Ministry of Industry, Trade and Labor,
Foreign Trade Administration
Добро пожаловать ברוכיםהבאים
Welcomes the Visitors of the Russian Companies to Israel
Tel-Aviv 14.03.2007
Israeli Economy:
Where the Breakthroughs Happen
Israel’s Economy – Main CharacteristicsIsrael’s Economy – Main Characteristics
Export Oriented Growth
Rapid Development of Technology & Hi-Tech
Industries
High Skilled Human Resources
Entrepreneurial Culture
Supportive Environment for Business
Investment & R&D Incentives
Foreign Direct Investment (B$)
Source: Bank of Israel, Not including traded securities
* - Jan-Jun 2006
1.6 1.7
3.1
5.1
3.6
1.8
3.9
1.6
6.2
7.7
0
1
2
3
4
5
6
7
8
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006*
High-Tech Boom
High-Tech
Bubble Burst
Expenditure on Civilian R&D in Israel & in Selected OECD Countries
(% of GDP, 2002)4.5
4.1
3.4
2.8 2.82.6 2.5
2.32
1.8 1.7
1.2 1.1
0
1
2
3
4
5
Israel
Sweden
Finland
Japan
Korea
Switzerland
Germany
USAFrance
Netherlands
UK Ireland
Italy
Source: Central Bureau of Statistics, Bank of Israel
Policy and New Toolsfor Development of the Trade
and Economic Relations between Israel and Russia
Government Incentives
• Investment Incentives
• R&D Incentives
• Industrial Technology Incubator Program
• Industrial Innovation Support Program
• International Cooperation ( Trade, R&D, Investments)
• Programs aimed at assisting SME’s (Consulting Services, Financing, Marketing)
The Joint Commissions
The economic activity between Israel and Russia is settled through the Joint Commissions.
Until now Six joint commissions have taken place, the last of them are:
•6th Joint Commission November 2006, Jerusalem
• 5th Joint Commission, June 2005, Moscow
• 4th Joint Commission, November 2002, Jerusalem
• 3rd Joint Commission, January 2000, Moscow
Inter-Governmental Economic Agreements between Israel and Russia
• MFN agreement (1994) • Agreement on avoidance of double taxation (1994)• Agreement on cooperation in customs (1998) • Aviation agreement (1998) • Framework agreement on cooperation in science and
culture (1995) • Agreement on cooperation in industrial R&D between
MATIMOP and Rosnauka (2006)• Israel’s support of Russia’s bid to join WTO
Inter-Governmental Economic Agreements under negotiations between Israel and Russia
• Agreement on investment protection • Agreement in the area of standardization • Agreement on cooperation in industrial R&D on
the governmental level
Inter-Organizational Agreements Israel - Russia
• Agreement between SME authorities • Agreement on insurance of credit lines between ASHRA
and Russian commercial banks • Quadruple cooperation agreement between
Manufacturer’s Association of Israel, Israeli Export Institute, Israel-Russia Chamber of Commerce and Association of Entrepreneurs and Industrialists of Russia (2006)
• Cooperation agreement between Manufacturer’s Association of Israel and Federation of Chambers of Commerce of Russia (2006)
Russia as one of the priority countries for the Israeli foreign trade
• Announcement of Russia as one of the priority countries for promotion of the Israeli exports and of the bilateral trade in general.
• Opening in St. Petersburg of a regional office of the Trade & Economic Department of the Israeli Embassy in Moscow.
• Concentration of efforts in selected sectors with high potential for bilateral cooperation (Telecom, HLS, Agriculture, Software)
• ASHRA - The Israel Export Insurance Corporation provides additional financial tools for development of Israel-Russia trade cooperation.
• Russia as an Technology partner for Israel.
Trade and Economics Relations:
Latest Developments
• Working group in standardization – negotiations toward mutual recognition of the laboratories in the selected sectors
• Diamonds – announcement of the President of Alrosa about starting of direct marketing of rough diamonds to Israel
Israel’s Foreign Trade and
Israel – Russia Trade Relations
Exports as a % of GDP
31%
35% 36%
38%
44%
46%
48%
25%
30%
35%
40%
45%
50%
1995 2001 2002 2003 2004 2005 2006*
Source: Central Bureau of Statistics, Bank of Israel, EIU *Forecast
Israel’s Free Trade AgreementsUSA (1985)
EFTA (1992)
Jordan (1995): Bilateral Trade Agreement
Canada (1997)
Turkey (1997)
Mexico (1999)
Romania (2000)
European Union – Association Agreement 2000
Bulgaria (2002)MERCOSUR(Under Negotiation)
Exports of Goods by Region 2005 (exc. Diamonds)
Asia15%
Rest of the World11.5%
USA28.5%
South & Central America
4%
European Union34%
Rest of Europe7%
Source: Central Bureau of Statistics, Bank of Israel
Imports of Goods by Region 2005 (exc. Diamonds)
Asia18%
Rest of the World18%
USA15%
Central & South America
3%
EU37%
Rest of Europe9%
Source: Central Bureau of Statistics, Bank of Israel
Israel’s Major High-Tech Exports 2005
Software22%
Pharmaceutical Products
15%
Equipment for Control and Supervision
20%
Aircraft8%
Electronic Communication
Equipment 19%
Office and Computing Equipment
6%
Electronical Components
10%
Source: Israel Export & International Cooperation Institute, Israel Association of Software Houses
Total High-Tech Export
(Including Software): 15 B$
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
2002 2003 2004 2005 2006
שנה
Importיבוא
Exportיצוא
Trade Balanceמאזן מסחרי
Total Tradeהיקף הסחר
Israel’s Trade with Russia
0%
20%
40%
60%
80%
100%
Export 2005 H1 Export 2006 H1
Israeli Export to Russia Micellaneous
Optical & MedicalEquipmentPrecious Stones &MetalsPrepared Foodstuffs
Plants & VegetableProductsRubber & Plastics
Chemical Products
Machinery
0%
20%
40%
60%
80%
100%
Import 2005 H1 Import 2006 H1
Israeli Import from Russia
Micellaneous
Plants & VegetableProducts
Chemical Products
Mineral Products
Base Metals
Precious Stones & Metals
ThanksWishing you a Fruitful and Enjoyable Exhibition
Спасибо за внимание
תודה על ההקשבה
Ministry of Industry, Trade and LaborForeign Trade Administration