Boeing will collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government. Israel will be buying about $10 billion worth of jet fighters, helicopters and other military gear. The reciprocal procurement means $3.5 billion of the new business will be in Israel.
Under a defense aid deal signed in 2016 by Israeli Prime Minister Benjamin Netanyahu and then U.S. President Barack Obama, the United States agreed to provide Israel with $38 billion in military assistance over 10 years.
However, one component of the deal was to phase out a special arrangement that had allowed Israel to use 26.3 percent of the U.S. aid on its own defense industry instead of on American-made weapons. All the aid will now have to be spent on U.S. equipment by 2026.