Defense Update
Defense Update
Arie Egozi & Tamir Eshel
Why Israeli Companies are Moving Production to the USA?
5 minutes Posted Nov 18, 2021 at 11:00 pm.
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Changes in the American Foreign Military Financing (FMF) aid to Israel are driving Israeli defense companies to move production lines to the USA, to drive US-funded defense procurements worth billions of dollars. In the past Israel could convert part of this aid to local currency, to buy part of the products locally, but the new agreement has closed this gap, restricting FMF sales exclusively to US-based companies. Israel's defense companies need to adjust and they do it en masse.