Israel and Boeing Ink Major reciprocal spending agreement
Boeing has agreed to spend billions of dollars in Israel over the coming decade if it wins major defense contracts, Israel's Economy Ministry said, Haaretz reports.
The "reciprocal procurement" agreement calls for Boeing to collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government.
This could ease concerns in Israel over new requirements in a U.S. aid package that divert funds away from local industries.
Boeing is competing in Israel for a number of key Defense Ministry contracts, including the purchase of additional F-15 aircraft, fueling planes and a squadron of transport helicopters, the ministry said.
With Israel expecting to make about $10 billion of military purchases from Boeing over the next decade, the agreement with the U.S. aerospace company means $3.5 billion in new business in Israel, the ministry said in a statement.
"A reciprocal procurement agreement of this magnitude is a significant achievement that will lead to the growth of many companies in the economy, increase their activity and also their success in international markets," said Economy Minister Eli Cohen.