US and Israel agree to record-setting military pact

The United States and Israel have agreed to a record-setting military aid package worth $38 billion over 10 years.

The deal comes after months of behind-the-scenes negotiations. Under the terms of the current 10-year deal, which expires in 2018, the US provides its Middle East ally with $3.1 billion worth of annual military aid.

The US State Department said on Tuesday that the agreement "constitutes the single largest pledge of bilateral military assistance in U.S. history."

There was no immediate comment from the Israeli government.

The Memorandum of Understanding (MOU) is to be signed in Washington on Wednesday, but given the acrimonious personal relationship between the countries' two leaders, neither President Barack Obama nor Israeli Prime Minister Benjamin Netanyahu will participate in the signing ceremony.

Netanyahu reportedly considered waiting for the next US president to take office in the hopes of getting a better agreement, but ultimately opted against it even though Israel made considerable concessions on the deal.

In addition to the uncertainty of what kind of a deal he would get from a new US president, Israel's defense establishment required clarity on the deal in order to plan ahead. The accord also marks the first time ever that such an agreement earmarks $500 million per year for Israeli missile defense, which was previously funded ad hoc by Congress.

Israel wanted more

Despite the mammoth size of the deal, Israel had sought $45 million more in aid. Israel also agreed to gradually phase out the use of US funds for purchasing Israeli military products. Israel's desire to spend some of the funds internally had been a major sticking point in the deal, but in the end the country relented. The funds will ultimately have to be spent on US-made weaponry.

The new deal also prohibits Israel from spending any of the money on fuel for its military.

And, finally, Israel also agreed not to come back and ask Congress for more funds than what the new deal authorizes unless a new war breaks out, according to a US official who spoke on condition of anonymity because he was not authorized to discuss the deal.

Pre-election deal

For his part, Obama was eager to lock in a deal before leaving office to bolster his legacy and undercut the criticism that his administration's support for Israel was somehow soft.

The deal also ensures that the next US president won't have to deal with this thorny issue upon taking office, although both the Democrat Hillary Clinton and Republican Donald Trump have vowed to protect Israel's security if elected.

Word of the agreement sparked fury among pro-Palestinian groups who say Israel should not be rewarded while it continues to defy the will of the international community by continuing to build settlements in the occupied West Bank.

bik/kl (AP, Reuters, AFP)