Record new US military aid deal for Israel to be signed in days: sources

The United States and Israel have reached final agreement on a record new package of at least US$38 billion in US military aid and the 10-year pact is expected to be signed this week, sources close to the matter told Reuters on September 13.

U.S. President Barack Obama meets with Israeli Prime Minister Benjamin Netanyahu in the Oval office of the White House in Washington November 9, 2015. REUTERS/Kevin Lamarque
The deal will represent the biggest pledge of U.S. military assistance made to any country but also involves major concessions granted by Israeli Prime Minister Benjamin Netanyahu, according to officials on both sides.

Those include Israel’s agreement not to seek additional funds from Congress beyond what will be guaranteed annually in the new package, and also to phase out a special arrangement that has allowed Israel to spend part of its U.S. aid on its own defense industry instead of on American-made weapons, the officials said.

Israel’s chief negotiator, Jacob Nagel, acting head of Netanyahu’s national security council, arrived in Washington overnight in preparation for a signing ceremony with U.S. National Security Adviser Susan Rice, according to one source familiar with the matter.

Nearly 10 months of drawn-out aid negotiations have underscored continuing friction between U.S. President Barack Obama and Netanyahu over last year's U.S.-led nuclear deal with Iran, Israel's arch-foe. The United States and Israel have also been at odds over the Palestinians.

But the right-wing Israeli leader decided it would be best to forge a new arrangement with Obama, who leaves office in January, rather than hoping for better terms from the next U.S. administration, according to officials on both sides.

A deal now allows him to avoid uncertainties surrounding the next president, whether Democrat Hillary Clinton or Republican Donald Trump, and to give Israel’s defense establishment the ability to plan ahead.

Obama's aides want a new deal before his presidency ends, seeing it as an important part of his legacy. Republican critics accuse him of not being attentive enough to Israel's security, which the White House strongly denies.

Israel has long been a major recipient of U.S. aid, mostly in the form of military assistance against a backdrop of an ebbing and flowing conflict with the Palestinians and Israel's neighbors, as well as threats from Iran.

The 10-year aid packages underpin Washington’s congressionally mandated requirement to help maintain Israel’s “qualitative military edge” in the region.

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