Israel’s aerospace and defence industry is being forced to adapt to new export restrictions imposed by the US government. The two countries have agreed on a set of regulations aimed at giving the USA total control over defence exports from Israel to “sensitive” countries. The restrictions were demanded by the USA after it accused the Israeli ministry of defence of allegedly providing false information about a deal in which Israel Aircraft Industries was to upgrade Harpy attack drones sold to China. Washington has demanded that the Israeli ministry of defence inform it of any intention to sell defence systems to specific countries. The list has not been released, but sources say it includes China and India. “This demand will make our export efforts in some markets almost impossible,” says a senior Israeli industry source.

Source: Flight International