Israel Offers Grants to Exporters Affected by Dutch Boycott
Israel's Ministry of Economy and Industry is implementing measures to support Israeli exporters impacted by a new Dutch government order that prohibits the import, sale, and brokerage of goods originating from the West Bank, East Jerusalem, and the Golan Heights. The order, which places the burden of proof for goods' origin on Dutch importers, is expected to affect Israeli companies that use raw materials or components from these areas, as well as direct exporters. This Dutch move follows similar restrictions in Spain and anticipated actions in other European nations.
Exports from the affected regions to the Netherlands amount to approximately $75 million annually, representing about 2.9% of Israel's total goods exports to the country. The Netherlands is a significant market for Israel and a key gateway to Europe. To counter the impact, the Ministry has established a dedicated team within the Foreign Trade Administration to assist affected companies. Additionally, financial aid of up to 200,000 shekels is available for exporters to develop new markets, with a focus now also on food and fresh produce exporters. Over 25 aid applications have already been submitted, including from date exporters.
The Ministry is also working with economic attachés to identify alternative export destinations outside Western Europe, such as Australia, Chile, Colombia, and Eastern European countries. Efforts are underway to increase Israeli companies' presence at international trade fairs, particularly in Asia, to help them find new customers and reduce reliance on markets with trade barriers.
Beyond economic measures, Israel is engaging diplomatically with Dutch and EU authorities to clarify the order's implementation and customs aspects. Negotiations are also ongoing with the U.S. government to potentially reduce tariffs on products like kosher wine, dates, and tahini that could be affected by European restrictions.
Minister of Economy and Industry Nir Barkat stated that the ministry is monitoring European trade policy changes and actively working to diversify Israeli exports beyond single markets. Foreign Trade Administration head Roi Fisher added that the ministry stands with affected exporters to help them maintain their export activities, reduce market dependency, and continue international growth.
