How do free-trade agreements help Israel trade with other countries?

Free-trade agreements are essential to Israel’s economic strategy, providing the country with vital access to foreign markets that compensates for its lack of access to regional markets in the Middle East.1

By establishing free trade agreements with major partners such as the European Union and the United States, and maintaining membership in the World Trade Organization, Israel has successfully integrated its economy into global markets. These agreements, combined with the country's focus on industrial and scientific innovation, have enabled Israel to overcome obstacles such as a small domestic market and regional boycotts. This international connectivity has supported the growth of highly diversified exports, including high-technology products and agricultural goods, which are sold globally.12