Knesset Panel Approves U.S. Standards Import Reform, But Price Impact Is Doubtful

The Knesset Economy Committee on Monday approved on second and third readings a reform dubbed “What Is Made in the U.S. Is Good for Israel,” but the likelihood that it will reduce consumer prices remains unclear. Chaired by MK David Bitan, the committee advanced an amendment to the Standards Law meant to adopt American standards and further loosen import barriers, following the earlier “What Is Good for Europe Is Good for Israel” reform.

Unlike the European version, the new measure applies only to goods actually manufactured in the United States, not products merely sold there that were made elsewhere. Critics say that limits the reform’s practical effect and casts doubt on its role in lowering the cost of living. The government also removed food products from the bill, saying it would cover only non-food consumer goods for safety and health reasons. That decision further narrows its economic impact and reinforces the impression that the reform is primarily political.

Economy Minister Nir Barkat acknowledged during the committee debate that Washington pushed hard for the move. “This law is of great importance to Israel and to relations with the United States,” he said. “It is extremely important to the Americans, to the point that they told me they would not move forward on other things until we finish this. We can make additions later, but it is important to complete this now.” Bitan replied sarcastically, asking whether Israel could now request that the U.S. conquer Iran.

In practical terms, the reform will allow direct adoption of American standards alongside existing European standards, enabling easier imports of U.S.-made products such as baby and children’s goods, detergents, bicycle helmets and child car seats. It is due to take effect six months after publication in the official gazette, though the economy minister may extend the start date by up to one year if preparations are not completed in time. The committee also added a clause exempting products used for security purposes, including components for defense systems or military production, from ordinary civilian standards if they are not sold to the public. A separate provision already approved would allow the economy minister, with the energy minister’s consent and the oil commissioner’s approval, to waive standards for equipment used in natural gas production, extraction and offshore rig maintenance.