JERUSALEM, April 28 (Reuters) - Israel has proposed

revamping its four-decade-old free trade agreement with the

United States, its economy minister said on Monday, as it looks

to head off tariffs from its closest ally.

An upgraded trade pact would ease restrictions on data

sharing that would enable significant collaboration, Economy

Minister Nir Barkat told Reuters at a conference in Jerusalem.

He said Israel had already agreed to several requests, which

included lifting tariffs on U.S. agricultural goods.

Most U.S. goods are already exempt from Israeli tariffs

under a 1985 trade deal. The U.S. is Israel's biggest trading

partner with bilateral trade worth an estimated $37 billion in

2024, according to U.S. trade data. Last year, Israel had a $7.4

billion trade surplus with the United States.

President Donald Trump's administration this month announced

sweeping tariffs on dozens of countries, including a 17% levy on

Israeli imports, before saying there would be a 90-day pause

with a baseline 10% tariff on imports to allow for trade

negotiations.

Prior to the sweeping tariffs announcement, Israel said it

would lift all remaining import duties on U.S. goods and Prime

Minister Benjamin Netanyahu met with Trump in Washington.