Israel's Foreign Trade Head Downplays Boycott Impact, Cites Global Production Trends

Roee Fischer, head of the Foreign Trade Administration at Israel's Ministry of Economy, addressed the statistic that 40% of Israeli goods exports no longer pass through the country's borders. He attributed this trend, which he described as global rather than a warning sign for Israel, to increasing boycotts in Europe, a strong shekel, and the relocation of production facilities abroad. Fischer stated that not all countries are boycotting Israel, and the boycotts are only effective in a few specific locations, naming Spain and the Netherlands as examples of places with effective boycotts. He noted that even in countries like England, the boycott does not cover all Israeli exports, allowing exporters to strategically redirect their goods to other markets.

Fischer emphasized the administration's strategy to diversify exports beyond traditional markets, focusing on Asia, particularly India and the Philippines, and exploring opportunities in South America, including Chile and Brazil, for fresh produce. He acknowledged challenges with shipping but highlighted the creativity of Israeli exporters, noting that Israel reached a record $69 billion in exports in 2025. He explained that the phenomenon of production occurring outside Israel is a sign of industrial maturity, comparing it to global tech giants like Samsung and Apple, whose products are largely manufactured outside their home countries. This global trend, he argued, allows for better pricing and faster market access, ultimately benefiting the Israeli economy.

Regarding employment, Fischer stated that Israel is at full employment and that encouraging domestic production over more efficient international manufacturing would be counterproductive. He also detailed the ministry's support for companies affected by boycotts, including direct contact, connecting them with trade attachés, providing grants of up to 200,000 shekels for new market development, and focusing on fresh produce exports like wine and dates to the US. The ministry is providing detailed trade information to help industries navigate these challenges.

Fischer characterized the boycotts affecting companies in Judea and Samaria and the Golan Heights as significant for those specific communities but not a macroeconomic event. He expressed confidence that their efforts would create a long-term effect, though acknowledging a significant short-term impact on the affected industries and communities.