STATE OF UTAH
POPULATION: 2,233,169
UNEMPLOYMENT RATE: 2.8
GROSS STATE PRODUCT (GSP) IN MILLIONS: $97,749
GOVERNOR: Jon Huntsman, Jr. (R)
TRADE WITH ISRAEL:
Cooperation Between Israel
and the State of Utah
Exports to Israel in 2006:
Percentage change from 2005:
Israel's rank as trade partner:
Total exports since 1991:
Military Contracts with Israel in 2006 Using Foreign Military
Financing:
Jewish Population in 2001:
$58,812,072
2.37
19
$287,697,344
$281,064
4,500
Jewish Percentage of Total Population:
0.2
Binational foundation grants shared by Utah institutions:
BARD (1987-2005):
$1,842,000
BSF (1987-2005):
$993,230
BIRD (1980-2005):
$825,891
Recipients of grants from U.S.-Israel binational foundations:
Aerotrans Corp.
Brigham Young
Evans & Sutherland
Fairchild Semiconductors Corp.
Logan State
Myriad genetics, Inc.
Novell Inc.
University of Utah
University of Utah Medical School
Utah State
Wicat Systems Inc.
Agreements with Israel
None.
Partners For Change
The U.S.-Israel relationship is based on the twin pillars of shared values and mutual
interests. Given this commonality of interests and beliefs, it should not be surprising that
support for Israel is one of the most pronounced and consistent foreign policy values of
the American people.
It is more difficult to devise programs that capitalize on the two nations' shared values
than their security interests; nevertheless, such programs do exist. In fact, these SHARED
VALUE INITIATIVES cover a broad range of areas, including the environment, science
and technology, education and health.
Today's interdependent global economy requires that trade policy be developed at the
national and state level.
Many states have recognized the opportunity for realizing significant benefits by seeking
to increase trade with Israel. No fewer than 23 states have cooperative agreements with
Israel.
Utah does not yet have a formal partnership with Israel; nevertheless, in 2006, Utah
exported about $58.8 million worth of manufacturing goods to Israel. This is a 2.37
percent increase from 2005. The total value of exports since 1991 exceeds $287 million.
In addition, Utah companies received $281,064 in 2006 for U.S. government-funded
military contracts with Israel through the Foreign Military Financing (FMF) program
(U.S. military assistance to Israel). Israel now ranks as Utah's 19th leading trade partner.
Israel is certainly a place where potential business and trade partners can be found. It can
also be a source, however, for innovative programs and ideas for addressing problems
facing the citizens of Utah.
Israel, for example, has developed a number of pioneering education programs. One, the
Home Instruction Program for Preschool Youngsters, has been praised by President
Clinton as “the best preschool program on earth” and replicated throughout the country.
A range of other exciting approaches to social problems like unemployment,
environmental protection and drug abuse have been successfully implemented in Israel
and could be imported for the benefit of Americans.
The potential for greater cooperation with Israel for the benefit of Utah is limited only by
the imagination.
Utah Firms Profit From Business With Israel
As the only country with free trade agreements with both the United States and the
European community, Israel can act as a bridge for international trade between the United
States and Europe. Moreover, because of the deep pool of talent, particularly in hightechnology areas, Israel provides excellent investment opportunities. Some of the nation's
largest companies, such as IBM, Microsoft, Motorola, Intel and McDonald's have found
that it is indeed profitable to do business in Israel.
Roughly 50 Utah companies have discovered the benefits of doing business in Israel,
including Hexcel Corporation and Wicat.
Michael Backall, Communications and Investor Relations Manager of Hexcel
Corporation stated that Hexcel has had a "long standing relationship with the Israeli
aircraft and airline industry, since the 1960's or 70's." Over this period of time, Hexcel
has sold spare parts and replacement materials to El Al for their Boeing aircrafts and has
supplied private companies that supply Israeli Aircraft Industries (IAI). Backall says,
"Israel has been a long-standing, valued customer. It has been a productive and helpful
relationship. Our dealing with them have been mutually satisfactory." Backall considers
the Israelis to be good customers and looks forward to working with them in the future.
Another airline supplier, Wicat, provided El Al computer-based training solutions to
learn how to fly and to use devices. Tod Peterson, Director of Marketing, says, "We
would like to continue doing business with El Al and we are actively pursuing business
with them." El Al bought a $250,000 purchase from them in the past, and Wicat is
currently pursing another purchase for one-half to one and half million dollars
Wicat enjoys a special relationship with El Al and considers it one of their closest
relationships compared with other airlines. "We value their relationship deeply and they
even help us get other clients," says Peterson.
Joint ventures between Israeli and Utah companies can obtain funding from the
Binational Industrial Research and Development Foundation (BIRD). The United States
and Israel established BIRD in 1977 to fund joint U.S.-Israeli teams in development and
subsequent commercialization of innovative, non-defense technological products. BIRD
funds projects in 33 states and the District of Columbia. Most grant recipients are small
businesses involved with software, instrumentation, communications, medical devices
and semiconductors.
Since its inception, BIRD has funded more than 740 joint high-tech R&D projects
through conditional grants totaling more than $210 million. Products developed from
these ventures have generated sales of more than $8 billion, tax revenues of more than
$200 million in the United States alone and created an estimated 20,000 American jobs.
Utah companies have profited from more than $800,000 of BIRD grants.
Scientific Innovations
The University of Utah (UT) and Brigham Young University (BYU) are among the Utah
institutions that have shared with counterparts in Israel more than $993,000 in grants
awarded by the Binational Science Foundation (BSF) since 1987. BSF was established in
1972 to promote research cooperation between scientists from the United States and
Israel. It has awarded more than 3,000 grants, involving scientists more than 400
institutions located in 44 states and the District of Columbia.
UT physicist Alexei Efros and his colleagues have been exploring the electron system in
atoms. They are working on a computer simulation that will provide a theoretical model
for electron transfer between various energy states. Efros says that he is in "permanent
contact" with his Israeli counterparts. Together they have produced a number of papers
and they share the workload between their two labs. He works on the physical aspects of
the experiments, while they compute the results. Efros adds that he is "delighted to work
with Israelis, they are good scientists and very good physicists."
BYU scientist Thomas Fletcher is doing concurrent research with the Israelis on
increasing the efficiency of power plants, which make electricity from coal. His approach
is to use a dual system of a gas turban and a steam turban to create energy in the power
plant. His dual system will increase the energy efficiency from its current level of 35
percent to 60 percent. "The grant has been beneficial to my work and to progress in
general," states Fletcher. Their research is ongoing and he hopes to publish some joint
papers in the near future.
A 1999 external economic review took an in depth look at 10 BSF projects. These 10
alone, produced aggregate benefits of $780 million, a figure four times the total
expenditure of BARD since its inception (1978). The benefits accrue to the United States,
to Israel and to both countries together.
Agriculture Benefits
The Binational Agricultural Research and Development Fund (BARD) was created in
1978 with equal contributions by the United States and Israel. BARD funds projects in 45
states and the District of Columbia. Since its inception, BARD has funded nearly 760
projects that have led to new technologies in drip irrigation, pesticides, fish farming,
livestock, poultry disease control and farm equipment. In 2005, 28 projects were funded
at 31 U.S. institutions. Utah institutions have shared grants worth more than $1.8 million
since 1987.
The University of Utah's Orly's Ardon is studying iron metabolism in yeast. She is using
yeast as a model organism for plants and animals. She is learning where iron is stored in
cells and about the genes responsible for its uptake into cells. Dr. Ardon is currently
visiting the University of Utah from Israel through the BARD grant. She enjoys working
with Americans and was excited to be working at one of the most advanced institutes in
the state. Working in the U.S. has allowed her to study things she was not able to study in
Israel. There have been a number of publications of her research and more are on the
way.
Utah State University's Fredrick Provenza is working with U.S. and Israeli scientists to
understand the compound polyethylene glycol (peg), which allows animals (such as cattle
and sheep) to eat toxic foods called tannins. Many plants are high in tannins, which
reduce the digestibility of food or cause toxic affects in animals. Peg compound binds to
tannins which 1) allows animals to utilize plants that otherwise they could not have eaten
(because if only one type of plant is eaten on a field, its supply is exhausted and other
plants overrun the field), 2) increase biodiversity in fields used for grazing and 3)
increases the use of animals as tools to manipulate vegetation (in some areas animals are
used instead of machines to clear away woody plants (high in tannins), thus saving fuel
and energy and using a more natural approach).
Dr. Provenza praised his Israeli colleagues and said that they do "tremendous work to
understand nutrition and toxicological factors of tannins and peg and are world leaders in
this field of research." The BARD grant has allowed him to explore areas that he was
unable to before.
A second scientist at Utah State University, R.J Hanks, has studied for more than ten
years the problems of saline irrigation for various plants, such as wheat and alfalfa, and
has designed a management process to solve them. His research highlights the
importance of maximizing irrigation rates for each crop. Too much salt accumulated near
the roots of plants decrease crop yields over time.
Other Cooperative Programs
Sister City Agreements:
City of Ogden City of Dimona
City of Provo City of Yavne
UJA Partnership 2000 Communities
Salt Lake City Kiryat MalachiHof Ashkelon
Hillel Campus Profiles
State Contacts
Dov Raviv
Anat Vered
Representative-Israel
State of Utah
International Business Development Office
P.O. Box 65065
Tel Aviv
61650, Israel
Tel. 972-3-642-5051
Fax. 972-3-641-5363
Email. dov@revivim.com
Web. http://www.utahtrade.com
United Jewish Federation of Utah
2416 E. 1700 South
Salt Lake City, UT 84108
Tel. 801-581-0102