ECONOMIC SURVEY (GPO)
March 16, 1994
FOREIGN TRADE:
* RAFAEL NEGOTIATING WITH AMERICAN MILITARY ON ENLARGING DEAL TO SUPPLY
PROTECTIVE EQUIPMENT FOR APC'S.
A senior Rafael official is now in the United States for negotiations
with American army commanders prior to the signing of a deal in which
the U.S. military will purchase tens of millions of dollars worth of
protective equipment for APC's from Rafael. This deal follows a similar
one signed eight months ago, in which Rafael supplied $6 million worth
of such equipment. The Americans decided to open negotiations for
enlarging the deal after they confirmed that the equipment suited their
needs. Rafael won the original tender over some of its larger European
competitors. ('Globes, 09.03.94)
* ISRAELI MANAGEMENT IN POLAND.
Israeli market management software is being exported to Poland: UMS's
Polo-op program. The program has so far been sold to approximately 20
different organizations. According UMS Managing Director, Yosef
Yehudien, the demand for the software was created after the program was
demonstrated at an exhibition at the Warsaw Hilton. The software has
been translated into pther languages as a result of the interest shown
in it. ('Ma'ariv', 16.03.94)
* NOGA LIGHT SIGNS AGREEMENT TO MARKET NIGHT-VISION EQUIPMENT IN JAPAN.
The Orlil Group's Noga Light company, which specializes in the
development of advanced night-vision systems, has signed an agreement
with the IBDA company, to market the new 'Night Spy' night vision system
for civilian use, in Japan. The deal expands the company's marketing
area which, up until now, has been limited mainly to Europe and Northern
Africa. 'Night Spy' was developed in Israel and joins the company's line
of military night-vision equipment. The device is adapted for a wide
range of uses, including navigation, astronomy, hunting, and security
work. Approximately 60% of the company's products are exported for
military and civilian security purposes. ('Globes', 15.03.94)
BUSINESS SECTOR:
* BELGIAN COMPANY WINS TENDER TO SUPPLY FOUR WIND TURBINES TO ELECTRIC
COMPANY.
The Electric Company's tenders committee awarded a tender for supplying
four intermediate-size wind turbines to the Belgian Widmaster company.
The deal is worth approximately $1 million. The Electric Company will
also acquire a large turbine, worth $500,000 for experimental purposes.
The turbines will installed at the Yodefat Wind Farm in the Lower
Galilee. It should be noted that the Finance Ministry opposed the deal,
maintaining that wind-generated electricity is not economically
worthwhile. ('Globes', 15.03.94)
GOVERNMENT SECTOR:
* INDUSTRY AND TRADE MINISTER HARISH CRITICIZES EC POSITION IN
COMMUNICATIONS NEGOTIATIONS.
Industry and Trade Minister Micha Harish severely criticized the
European Community over its position in the communications negotiations.
The Community is not making progress in the negotiations with Israel on
the issue of opening the communications field, which is a supplement to
the GATT Agreement. According to Minister Harish, the delays which have
been caused by the Community in this sector, which is the principal area
that could help reduce the balance of payments gap, are unacceptable and
incomprehensible. The Minister said that in every arrangement made in
Israel in the communications sector in the future, he will take strict
care to ensure that reciprocity be observed, and that preference be
given to public-sector suppliers from countries whose communications
markets are open to Israeli firms. According to officials in Jerusalem,
one of the possibilities [being considered] in light of this situation,
is to conduct government acquisitions bilaterally only with the United
States. This would harm European suppliers in all the fields that are
closed to us, such as energy communications and others, but would not
preclude taking steps that would benefit suppliers from countries that
do not restrict trade with Israel.
EXHIBITIONS AND MEETINGS:
* 50 ISRAELI COMPANIES TO PARTICIPATE IN SECOND ISRAELI NATIONAL
EXHIBITION IN MOSCOW AND ST. PETERSBURG.
Approximately 50 Israeli companies will participate in the second
Israeli National Exhibition, to be held in Moscow from 15-17.06.94. The
exhibition will move to St. Petersburg from 21-27.06.94; this will be
the first time that the Israeli National Exhibition will be held there.
The exhibition is being held under the auspices of the Federation of
Israeli Chambers of Commerce and the Israel-Russia Chamber of Commerce.
Israeli companies from the food, clothing, telecommunications, and
agriculture fields are slated to take part in the exhibition. During the
exhibition, the Federation of Chambers of Commerce will organize a
seminar on economic and trade links between Israel and Russia. Both
Israeli and Russian experts have been invited to attend, as well as
representatives of local companies that potentially stand to benefit
from such links.
* BUSINESS MEETING WITH ISRAELI ECONOMIC REPRESENTATIVES IN ASIA.
In the context of Industry and Trade Minister Micha Harish's official
visit to China, a meeting was held on 14.03.94 between Israel's economic
and trade representatives stationed in Asia and a delegation of Israeli
businesspeople that accompanied Minister Harish to China. The
businesspeople showed great interest in the market penetration
possibilities and trade rules in countries that have only recently
opened their gates to free and open trade with Israel, such as Taiwan
and [South] Korea. Among the issues discussed at the meeting were:
import licensing policies, marketing via local agents and trade
companies, bilateral agreements, the political effects of economic
cooperation, reciprocal acquisitions, taxation, and the consequences of
Hong Kong's reversion to Chinese control in 1997. At the meeting,
Minister Harish said that all of the new Asian markets are experiencing
accelerated growth and that the Industry and Trade Ministry will,
therefore, step up its activities in the region.