Political tensions between US President Barack Obama and Prime Minister Benjamin Netanyahu are palpable in the business world, according to Ofra Strauss, chairman of the Israel-American Chamber of Commerce and Israel’s Strauss Group.
"I feel that everyone is waiting for a change at the top of the pyramid. When it comes to the pyramid itself, business to business dealings, I felt that it's business as usual," Strauss told The Jerusalem Post in a phone call from Washington DC. Strauss was in the US capital to speak at the SelectUSA Investment summit, which aims to encourage foreign investment in the US.
"I have to say that we as the Israeli delegation felt really more than welcome," said Strauss, who was part of a 22-person Israeli delegation that included representatives from Teva, ThetaRay, Zemingo, AMCHAM and Dream Pretzels. "I can just imagine how great it could be when the relationship warms up." Americans, she noted, are pragmatic when it comes to business, so she doesn’t expect political tension to harm the US-Israel economic relationship. That said, politics were clearly present.
"We would prefer to have a completely different political relationship. It used to be that coming here, Israelis were always the favorite kids on the block when it came to the government,” Strauss said. “Not having that -- I don't think it will hurt the economic ties, but it doesn't help because it reaches every person who lives here, even outside the government. It touches the consumer, the banks -- it's the people." In the face of political problems, Strauss called for increasing economic cooperation between the US and Israel.
"Now, in light of the diplomatic tension, we need to strengthen the economic ties between Israel and the United States, to show that the connection between the nations and between the companies is stronger than any difference of opinion," she said.
The United States is Israel's single most important trade partner, though Europe surpasses it when taken as a whole. Over 1,000 Israeli companies operate in the US, employing over 100,000 employees in over 40 states. Israel is one of the top 20 exporters to the US, and trade has tripled since mid-1990s to roughly $40 billion. Last year, 14 Israeli companies went public in the US.
Things could still be improved, Strauss said. Business visas could be more accessible, and the 30-year-old bilateral Free Trade Agreement -- America’s first -- could be updated.
Israel could also learn a thing or two from the United States in rolling out the red carpet for foreign investors, Strauss said, something the new government should prioritize. “The most important mission of the new government is fixing what has to be fixed. Everything. Not just defense, but also business and the economy and the cost of living," Strauss said.