Image Credits: ZAWYA
Recent reforms in Israel’s import regulations, designed to streamline the entry of European products into the country, have sparked a significant political and economic debate. Under the new policy, which was recently passed by the Knesset, products adhering to European regulations—including food, cosmetics, and electrical goods—will benefit from simplified import processes. However, this approach has inadvertently sidelined American standards, leading to friction between the US and Israel.
The US has expressed strong discontent over Israel’s exclusive focus on European standards. This dissatisfaction is rooted in the fact that American products, which do not conform to European regulations, face ongoing import barriers to Israel. In response, the US has requested discussions to establish the recognition of American standards for import purposes, with the goal of promoting increased reciprocal procurement between the two countries.
The dialogue on this issue is in its early stages, and specifics regarding which product categories might align with US standards are still under consideration. The potential areas of impact include toys and baby products, which currently face stringent European requirements that differ from those in the US. This discrepancy has led to complications and additional costs for importers of American goods.
Raz Hillman, head of customs and standards at the Federation of Israeli Chambers of Commerce, noted that the US’s frustration stems from a perception of ingratitude, given the US’s unwavering support for Israel in recent conflicts. There is also criticism regarding the inconsistent application of standards, where products meeting US standards are hindered despite their equivalency to European norms.
Motti Garmiza, an importer of toys and baby products, highlighted the challenges faced due to these differing standards. He emphasized that US standards, while differing from European ones, are robust and often exceed in certain areas. However, the Israeli Ministry of Health’s stringent regulations on chemicals have complicated the import of US products.
The debate is set against the backdrop of a broader US industrial policy aimed at boosting domestic manufacturing and reducing reliance on foreign production. This policy, which began under President Trump and continues under President Biden, seeks to expand the global reach of American products. The push for recognizing US standards in Israel is part of this broader strategy to enhance American export opportunities.
Israel has previously adopted US standards for vehicles and fire safety, setting a precedent for potential recognition of US standards in other sectors. The current discussions will determine whether the Israeli market will open further to American goods, which could benefit Israeli consumers by providing access to a wider range of products at potentially lower costs.