NJ-Israel trade grows to $1.3B in 2020, despite COVID

Gov. Phil Murphy and top administration officials during 2018 economic trade visit to Israel. – EDWIN J. TORRES / GOVERNORS OFFICE

Trade between Israel and New Jersey grew by 5% between 2019 and 2020 despite the pandemic, according to a May 3 announcement from the New Jersey-Israel Commission.

Data jointly compiled by the New Jersey Economic Development Authority and New Jersey Business Action Center show trade value increasing from $1.27 billion in 2019 to $1.33 billion in 2020.

“Israel has long been an important ally to the United States, and to New Jersey in particular, as we continue to increase our presence in the global marketplace,” reads a statement from Gov. Phil Murphy, who toured Israel and Germany as part of a trade mission in 2018 to draw businesses from the country.

Exports to New Jersey from Israel increased 11.5%, according to the commission, and trade volume hit $1 billion in 2020, the first time since 2014. And that’s on top of $393 million in investment from the nation into New Jersey since 2003.

New Jersey’s top exports to Israel were “materials for the energy industry, electronics, and heavy machinery,” the statement reads, while its imports from Israel “were led by pharmaceuticals and included a strong emphasis on food products.”

Lozano

“Choose New Jersey has been proud to foster and grow this vital economic partnership over the past several years, as we further expand New Jersey’s innovation economy,” said Jose Lozano, president and chief executive officer of the economic development nonprofit which footed the bill for the 2018 trade mission, and one in 2019 to India.

Perhaps the biggest victory championed during the trip was an agreement by Teva Pharmaceuticals to move its headquarters to Morris County in exchange for a $40 million corporate tax break.

But their tax breaks were scrutinized in 2019 following revelations that they were allegedly part of a conspiracy to artificially hike prices on more than 100 different drugs.

Teva also had also settled with the Oklahoma attorney general, who alleged in an $85 million lawsuit the company helped fuel the U.S. opioid epidemic. The agreement was ultimately scuttled.

But other incentives and business support have come out of the New Jersey-Israel relationship.

Under one such program called the New Jersey-Israel Innovation Partnership Initiative, Israeli companies that formally partner with state businesses for research and development projects would have half of their R&D expenses covered by the Israeli Innovation Authority – an arm of the Israeli government tasked with boosting industrial R&D.

“Our partnership with Israel is more critical than ever as we continue to recapture New Jersey’s role as a leader in innovation and attract foreign domestic investment in our state,” NJEDA CEO Tim Sullivan said on May 3.