Yechiel Assia: Exports to EEC to grow at slower rate

Israel Export and International Cooperation Institute director Yechiel Assia said last week that industrial exports, excluding diamonds, to the European Community ( EEC) rose by 11% in the first half of 2005 to $4.2 billion.
 
Based on the six months export performance, Asia predicted that exports to the EEC would grow by 12% in 2005, compared with last year.
 
Assia noted, however, that industrial exports to the EEC were growing at a slower than the 18% growth achieved in the first half of 2004.
 
Export growth to the EEC, in the first half of 2004, was largely affected by the EEC expansion in May 2004.
 
Imports, excluding diamonds, from the EEC rose by 6.3% in the first half of 2005, to $6.6 billion.
 
Assia warned however that further appreciation of the euro and a possible recovery of high-tech sectors would reduce Israel’s trade deficit with the EEC. He added that intensifying competition within the EEC, due to it expansion to include countries with lower wages than in older EEC member states, was liable to adversely affect Israeli exporters.