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Tatiana Karasova

PhD in History, Head of Israel Department at RAS Institute for Oriental Studies

On September 14, 2016, the United States and Israel signed an agreement (memorandum) of understanding on the provision of military help to the Jewish state worth $38 billion over ten years ($3.8 billion per year). The previous agreement, which was adopted by the Bush administration in 2007 and expires in 2018, provided $3.1 billion per year. The new document will come into force once the term of the existing memorandum expires and will last from 2019 to 2028. It is the largest package ever provided by the United States.

On September 14, 2016, the United States and Israel signed an agreement (memorandum) of understanding on the provision of military help to the Jewish state worth $38 billion over ten years ($3.8 billion per year). The previous agreement, which was adopted by the Bush administration in 2007 and expires in 2018, provided $3.1 billion per year. The new document will come into force once the term of the existing memorandum expires and will last from 2019 to 2028. It is the largest package ever provided by the United States.

The Essence of the New Agreement

In accordance with the previous memorandum, which expires in 2018 and is “aimed at reducing security threats in the Middle East,” the United States allocated around $3 billion per year to support Israel’s defence capabilities. Israel used the funds to purchase modern weapons in the United States, carry out joint scientific and technological research, and develop new weapons. Under the new agreement, Israel will receive $8 billion more over the course of the contract’s lifespan. The amount includes expenditures on the joint development of missile defence programmes; in the past, such programmes had been funded separately, costing around $5 billion. The memorandum was agreed against the background of strained relations between Benjamin Netanyahu and Obama Administration in connection with the Iranian nuclear issue and attempts by Israel to torpedo the signing of an international agreement on Iran’s nuclear programme in return for lifting the sanctions against Tehran. The Israeli authorities are convinced that the deal poses a threat to its state, as it grants Iran access to hundreds of billions of dollars, a large part of which is likely to be used to support terrorism both in the Middle East and around the world.

Factors Influencing the Signing of the New Memorandum

Israel cannot continue to call on Congress to increase funding for defence projects.

The main reason for the signing of the new agreement was the potential increase in security threats to Israel in connection with the situation in the Middle East. The memorandum has come at an opportune time, as it builds on Washington’s official doctrine of ensuring Israel’s qualitative military edge. According to this idea, Israel must have the capability to counter “credible military threats from any individual state, coalition of states, or non-state actor.” From a political point of view, the agreement softens criticism at home in both countries with regard to the deterioration of relations between the United States and Israel. Another important factor in the signing of the agreement is the desire on the part of the Israeli to maintain its military advantage in the region. This is especially important against the background of the United States increasing its military aid to the Sunni states and, of course, in connection with the ongoing crisis in Syria.

Criticism of the Signing of the Memorandum

REUTERS

As usual, opinions are divided in Israel about the signing of the document. Critics point to two conditions put forward by the Obama Administration that could prove problematic for Israel. First, Israel cannot continue to call on Congress to increase funding for defence projects (with the exception of large-scale military actions). Second, by the time the Memorandum reaches its expiration date in 2028, the amounts allocated by the American side for Israel to use for its own developments will be almost zero. What is more, Israel will not be able to request additional funding from the United States Congress that is not covered by the memorandum. The amount of aid to be converted into shekels will also be reduced. There is a loophole here, however: a refusal for additional funding through Congress applies to missile defence only. It does not apply to other programmes, such as the development of tunnel detection systems. This is an issue that is extremely important for the United States, which is interested in protecting its own borders from illegal immigrants entering the country from Mexico. Since Congress was not involved in the signing of the Memorandum, it is under no obligation to follow the conditions set forth therein. The document was also not signed by the American Israel Public Affairs Committee, which can lobby anything it wants in Congress. Finally, as some experts have pointed out, the Memorandum is not legally binding, and Congress has the power to increase the budget as it sees fit. Some politicians in Israel believe that, by providing financial assistance, the United States is putting itself in a position to exert pressure on politics in the country, particularly with regard to concessions in Israel–Palestine relations. For example, during the military actions in the Gaza Strip in 2014, Barack Obama stopped shipments of certain types of missiles (Hellfire missiles), and the new agreement will increase pressure on the blockade issue and on the Israeli settlements on the West Bank.

Obama wants to put an end to effective U.S. subsidies for the private Israeli military industry.

The agreement has also faced serious criticism from military experts, who argue that Israel does not need U.S. military assistance. The agreed sum, $3.8 billion per year, is just a quarter of the Israeli military budget ($15.47 billion). Israel’s annual budget is around $89 billion. Its gross national product, which is approaching $300 billion today, will clearly double over the next ten years. A key part of the deal is that Israel is no longer permitted to spend up to 26 per cent of the aid it receives on shoring up the needs of its defence industry. As such, Obama wants to put an end to effective U.S. subsidies for the private Israeli military industry. Now Israel must spend every dollar on U.S.-produced goods: even military footwear manufactured in Israel has to be ordered from the United States. The worst thing, however, is that U.S. aid to Israel hampers the development of domestic military production in Israel: if Israel is unable to produce its own weapons, then it will become even more dependent on the United States, thus weakening its position as a sovereign state. What is more, the agreement does not necessarily ensure Israel’s qualitative military edge, as the United States sells its most advanced weapons to the country’s potential enemies (as a counter to which Israel will not be allowed to develop its own military potential).

The fact that the agreement was signed before the end of President Obama’s term in office reaffirms the importance and immutability of the strategic partnership between Israel and the United States for both sides, and prevents the issue of bilateral relations from becoming a point of contention among in the presidential campaign.

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