US, Israel Finalize $38bn Military Aid Deal

10:59     15 September, 2016

The US and Israel have agreed on a record $38bn (£29bn) military aid package.

The deal, known as a memorandum of understanding (MOU), calls for $3.8bn a year in aid, up from $3.1bn under the current pact, which expires in 2018, Independent reports.

According to the Times of Israel, the agreement also includes a provision curtailing Israel’s ability to spend the funds on its own arms industry over the next six years - a key area of dispute during talks. Washington had wanted Israel to spend a larger amount of the funds on American-made products. Currently, Israel can spend 26.3 percent of US military aid buying from its own domestic defense companies.


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