TABLE OF CONTENTS


Section                                                Page

I.   COMMERCIAL OVERVIEW

     Import Market .......................................1
     Commercial Environment ..............................1
     Business Attitude Toward the U.S. ...................1
     Major Business Opportunities ........................2
     Roadblocks to Doing Business in Israel ..............3
     Local and Third Country Competition .................4

II.  BEST PROSPECTS PRODUCTS AND SERVICES ................4
     FOR U.S. EXPORTERS

III.  ECONOMIC TRENDS AND OUTLOOK

      Major Trends and Outlook ............................5
      Principal Growth Sectors ............................6
      Government Role in the Economy ......................6
      Balance of Payments Situation .......................7
      Trade and Investment Barriers .......................7
      Labor Force .........................................9
      Major Local & Third Country Competitors ............10
      Infrastructure Situation ...........................10
      Major Infrastructure Projects ......................11

IV.   POLITICAL ENVIRONMENT

      Bilateral Relationship with the United States ......13
      Major Political Issues Affecting Business Climate ..14
      Political System ...................................14

V.    MARKETING U.S. PRODUCTS AND SERVICES

      Distribution and Sales Channels ....................14
      Agents/Distributors ................................15
      Franchising ........................................16
      Direct Marketing ...................................16
      Joint Ventures/Licencing ...........................17
      Establishing an Office .............................17
      Selling Factors/Techniques .........................17
      Advertising and Trade Promotion ....................18
      Product Pricing ....................................18
      Sales Service/Customer Support .....................19
      Selling to the Government ..........................19
      Intellectual Property Rights Protection ............19
      Legal Assistance ...................................22

 VI.  TRADE REGULATIONS AND STANDARDS
      Tariffs and Import Taxes ...........................22
      Customs Valuation ..................................22
      Import Licenses ....................................23
      Export Licenses ....................................23
      Import/Export Documentation ........................24
      Temporary Entry ....................................25
      Labeling/Marking Requirements ......................25
      Prohibited Imports .................................26
      Standards ..........................................27
      Free Trade Zones/Warehouses ........................28
      Special Import Provisions ..........................28
      Free Trade Arrangements ............................28

VII.  INVESTMENT CLIMATE

      Openness to Foreign Investment .....................28
      Conversion and Transfer Policies ...................29
      Expropriation and Compensation .....................30
      Dispute Settlement .................................31
      Performance Requirements and Incentives ............31
      Right to Private Ownership and Establishment .......36
      Protection of Intellectual Property Rights .........37
      Regulatory System ..................................38
      Efficient Capital Markets and Portfolio Investment .39
      Political Violence .................................40
      Bilateral Investment Agreements ....................40
      OPIC/Investment Insurance Programs .................40
      Labor ..............................................40
      Foreign Trade Zones/Free Ports .....................41
      Capital Outflow Policy .............................42
      Foreign Direct Investment ..........................43

VIII. TRADE AND PROJECT FINANCING

      Banking System .....................................44
      Foreign Exchange Controls ..........................44
      General Financing Availability .....................45
      Export Finance/Methods of Payment ..................45
      Export Financing and Insurance .....................46
      Project Financing ..................................46
      Correspondent Banking Arrangements .................47

IX.   BUSINESS TRAVEL

      Business Customs ...................................47
      Travel Advisory and Visas ..........................48
      Holidays (Calendar Year 1995) ......................48
      Business Infrastructure ............................49

      APPENDICES:

  A.  COUNTRY DATA .......................................51
  B.  BEST PROSPECTS .....................................54
  C.  U.S. AND COUNTRY CONTACTS ..........................64
  D.  MARKET RESEARCH ....................................76
  E.  TRADE EVENT SCHEDULE ...............................81