On December 2, 2025, Israel and the United States signed a new long-term Agreement on Trade in Agricultural Products (ATAP), replacing a temporary framework in place since 2004. Officials on both sides described the deal as a strategic and economic milestone designed to reduce Israel’s cost of living, increase market competition, and deepen ties with Washington amid growing global trade pressures.
Under the agreement, Israel will grant duty-free treatment to approximately 300 U.S. agricultural and food products, including meat, dairy, eggs, oils, juices, and a wide range of fresh and frozen produce. Some exemptions take effect immediately, while others will be phased in gradually over the next decade to avoid sudden shocks to local farmers, particularly in sensitive sectors such as dairy.
Israeli officials emphasized that the deal balances market opening with food security. Alongside increased imports, the government planned significant investment in domestic agriculture, including support for Israeli farmers, border and settlement communities, and technological innovation such as AI and advanced agri-tech to improve efficiency and resilience.
The agreement was also intended as a foundation for broader trade negotiations. Israel was seeking expanded U.S. concessions for its exports, as around 70% of Israeli goods entering the American market currently face new tariffs. With the United States remaining Israel’s largest trading partner, both sides viewed the ATAP as a stabilizing anchor amid geopolitical tensions and an increasingly hostile trade environment for Israeli products in other markets.
In addition, on December 29, 2025, the White House posted a proclamation extending duty-free access for certain Israeli agricultural products entering the United States through the end of 2026. The step was part of a broader effort to modernize U.S.-Israel agricultural trade rules.
Sources: Pesach Benson, “Israel, US seal agricultural trade deal to cut prices and boost exports,” Jerusalem Post, (December 3, 2025).
“US extends duty-free access for some Israeli farm items through 2026,” JNS, (December 30, 2025).