Israel: Background and Relations with the United States

On May 14, 1948, the State of Israel declared its independence and was immediately engaged in a war with all of its neighbors. Armed conflict has marked every decade of Israels existence. Despite its unstable regional environment, Israel has developed a vibrant parliamentary democracy, albeit with relatively fragile governments. Most recently, the Kadima Party placed first in the March 28, 2006, Knesset parliament election, and Prime Minister Ehud Olmert formed a four-party coalition government. Israel has an advanced industrial, market economy in which the government plays a substantial role. Israels foreign policy is focused largely on its region, Europe, and the United States. Since 1948, the United States and Israel have developed a close friendship based on common democratic values, religious affinities, and security interests. U.S.-Israeli bilateral relations are multidimensional. The United States is the principal proponent of the Arab-Israeli peace process, but U.S. and Israeli views differ on various peace process issues, such as the fate of the Golan Heights, Jerusalem, and Israeli settlements. The United States and Israel concluded a free-trade agreement in 1985, and the United States is Israels largest trading partner. Since 1976, Israel has been the largest recipient of U.S. foreign aid. The two countries also have close security relations. Current issues in U.S.-Israeli relations include Israels military sales to China, inadequate Israeli protection of U.S. intellectual property, and espionage-related cases. This report replaces CRS Issue Brief IB82008, Israel Background and Relations with the United States, and will be updated as developments warrant. See also CRS Report RL33530, Israeli-Arab Negotiations Background, Conflicts, and U.S. Policy, CRS Report RL33566, Israel-Hamas-Hezbollah the Current Conflict, and CRS Report RL33222, U.S. Foreign Aid to Israel.