BICOM

The new military aid agreement between Israel and the US came into force yesterday.

Israel will receive $3.3bn a year from 2019 to 2028 – an increase of $0.2bn compared to the current deal. Under the terms of the new agreement Israel is required to end the arrangement where 26.3 per cent of the aid package could be spent in the Israeli defence industry, rather than US companies.

The US financial assistance will be spent on defence programmes including the Iron Dome missile interception system, the Arrow 3 long-range interceptor programme, and David’s Sling mid-range rocket interceptors.

State Department Spokeswoman Heather Nauert stated: “Our implementation of this historic MOU reflects the enduring and unshakable commitment of the president, this administration, and the American people to Israel’s security. The MOU was negotiated under the previous administration, reflecting the bi-partisan nature of this commitment.”

Israeli Prime Minister Benjamin Netanyahu thanked US Congress for its commitment to Israel and for the financial assistance over the next 10 years. He added: “Israel and the world face complex security challenges, especially Iranian aggression. The unreserved US support for Israel’s right to defend itself is among the pillars of the strong bond between the two countries.”

Earlier this month Congress passed a bill to enshrine the new military agreement into law, ensuring that future presidents could not suspend the aid package as a means of pressuring Israel. A special mechanism to fund the deal, separate from the annual budget, was also established.

In March, Congress also approved a $705m budget for Israel’s missile defence programmes for 2018. At the time Defence Minister Avigdor Lieberman said the money would be used for “serial production of Iron Dome interceptors, magic wand and Arrow 3, and for the continued development of the multi-layered defence system against future threats”.