Israel's Economic Affairs Committee approved for second and third readings a new import reform from the United States, billed as opening the local market to goods that meet FDA or other U.S. federal standards. Under the plan, consumer products, packaged food and cosmetics could be imported directly into Israel after a simple declaration by the importer, without the long approvals now required from the Standards Institution or the Health Ministry.
The Economy Ministry says cutting this bureaucracy could lower prices by about 20% to 30% in concentrated categories such as toiletries, cleaning products and dry foods, saving an average family hundreds of shekels a month. Economy Minister Nir Barkat said the reform could bring in an additional $200 million to $300 million in imports from the U.S.
But the article says similar promises from the earlier Europe-focused reform did not reach consumers. Barkat had promised that “What is good for Europe is good for Israel” would save households 6,000 shekels a year, yet a State Comptroller report published in October 2025 found that importers were not actively using the scheme and the relevant ministries had not published the information needed to make it work. That reduced participation and import volume, leaving the market concentrated.
Importers also said the regulatory savings stayed with them, while shelf prices did not fall at all. The article points to soaring shipping costs because of Houthi threats in the Red Sea and the Turkish boycott, which forced longer routes via Greece and Georgia, as well as higher costs for raw materials, VAT and municipal taxes. With container shipping rising from $1,000 to more than $5,000, the earlier savings were largely absorbed.
The new U.S. reform is therefore presented as a promising but incomplete step. The article says real consumer relief will require stricter oversight and enforcement, plus action against the concentrated structure of the Israeli market and the power of large retail chains.
