“US spending on the Iraq War - $63 billion - will raise economic activity in the US, and renew production of munitions and military equipment in the short term. Some of that equipment and munitions are made in Israel,” Minister for Economic Affairs to North America Zohar Pery told “Globes”. Pery is currently holding economic talks with administration officials.
Pery noted that it was very hard to interest businesspeople to invest in Israel during the current period of great worldwide economic uncertainty. However, the huge US military expenditure on the Iraq War will require massive reequipment, amounting to billions of dollars.
“We are now working in the US to interest the defense contractors with whom Israel has relations to participate with Israeli companies in the tenders anticipated when the war is over,” Pery said.
Pery said Israeli companies would probably participate in the US administration’s plans to upgrade advanced technologies and computer systems, anti-terrorism civil defense tenders, building rescue systems, and border defenses.
Pery revealed that the US administration will shortly allocate almost $50 billion to state governments to equip, procure, and build protective systems for power stations, nuclear facilities, airports, and other sensitive installations, under the homeland defense programs.
Pery noted that Israeli companies would be able to participate in these huge investments. He said the Israeli government should budget $200,000 to optimize Israeli companies’ participation in these tenders.
Israel-America Chamber of Commerce and Industry (AmCham Israel) asked Prime Minister Ariel Sharon yesterday to amend regulations and barriers to the import of US cars. AmCham Israel called for the use of US standards, which would lead to a preference for US cars over European ones in imports and government tenders.
AmCham Israel president Adv. Yaacov Yisraeli stated that now that the US administration and Congress had approved additional grants and loan guarantees to Israel, the Israeli government ought to give preference to US products over European ones.
Yisraeli added that in light of the massive US support for Israel, US companies were “deeply frustrated” that IDF generals and government ministers used Volvos, instead of American cars, which were just as good, and cost the same.
Published by Globes [online] - www.globes.co.il - on April 9, 2003