Smotrich in the U.S. and Agrees to Strengthen Economic Cooperation

Enhancing Economic Cooperation Between the United States and Israel in a Meeting Between the U.S. Treasury Secretary and Israeli Finance Minister

The U.S. Treasury Department announced that Treasury Secretary Scott Pisin met with Israeli Finance Minister Bezalel Smotrich on Wednesday, where they agreed to enhance dialogue and cooperation between the two countries within the framework of their shared economic partnership. This meeting comes at a crucial time for developing a new strategic economic future for both the U.S. and Israel, as confirmed by the two ministers in a joint statement issued by the U.S. Treasury Department.

Strengthening Cooperation in Strategic Areas

The statement highlighted that “this period is critical for shaping a shared economic future for the two countries, as well as strengthening U.S. global leadership and Israel’s role as a key economic partner.” The statement also noted that both sides agreed to enhance mechanisms for dialogue to strengthen cooperation in key areas such as economic policy, technology, and financial systems.

The ministers emphasized the importance of adopting a coordinated approach to ensure that the bilateral relationship between the U.S. and Israel remains a source of economic strength, innovation, and mutual benefit.

A Shift in U.S. Policy Towards Smotrich

It is worth noting that this visit follows a period of diplomatic boycott imposed by the previous U.S. administration on Israeli Finance Minister Bezalel Smotrich, reflecting a shift in U.S. policy towards him. Since the inauguration of President Donald Trump’s administration, the U.S. lifted the ban on Smotrich, allowing him to make phone calls with his U.S. counterpart and meet with U.S. Special Envoy for the Middle East, Stephen Wittkopf.

This meeting is considered the first direct talks between Smotrich, the Israeli minister known for his hardline stance and continued support for settlements, and a senior official in the U.S. administration. It could have broad implications for U.S. policy on Israeli settlements in Palestinian territories, which are deemed illegal under international law.

Israeli Policy Towards Gaza and Settlements

Smotrich, a key partner in the ruling coalition led by Prime Minister Benjamin Netanyahu, supports the policy of reoccupying Gaza and rebuilding Jewish settlements that were dismantled in 2005, as well as what he describes as “voluntary migration” of large numbers of Palestinians out of the Gaza Strip.

Tensions Regarding Israeli-Palestinian Banking Relations

Despite the significance of the meeting, the discussions between Smotrich and Pisin did not address Israeli banking relations with Palestinian banks, an issue that had been a source of tension during the presidency of Joe Biden. The U.S. Treasury Department welcomed a decision by the Israeli Cabinet in December to extend the guarantee for Israeli banks for another year, aiming to protect Israeli banks linked to Palestinian banks from anti-terrorism laws.

Earlier, former U.S. Treasury Secretary Janet Yellen expressed concerns in May about Israel’s threat to halt correspondent banking services between Palestinian and Israeli banks, which would have significantly impacted the Palestinian economy.

Sources:

• U.S. Treasury Department
• Reuters Agency
• Le Quotidien Newspaper (Mauritania)