Economy Ministry Promises Cheaper Direct Imports from the U.S.

Israel’s Economic Affairs Committee has approved for second and third readings a reform designed to make it easier to import goods directly from the United States. The plan would let consumer products, packaged food and cosmetics that meet U.S. FDA or other federal standards enter Israel without the usual lengthy approvals from the Standards Institute or the Health Ministry. Importers would instead submit a declaration that the product complies with U.S. rules, and the shipment could be released immediately.

The Economy Ministry says the move could cut bureaucracy that it says adds tens of percent to prices in Israel, and it could save an average family hundreds of shekels a month. In the most concentrated categories, such as toiletries, cleaning products and dry foods, the ministry estimates price drops of about 20% to 30%. Economy Minister Nir Barkat said the reform could bring in another $200 million to $300 million in imports from the U.S.

But the article notes that similar promises did not translate into lower prices under the earlier reform, “What is good for Europe is good for Israel,” which began in January 2025. Barkat had presented that plan as a savings of NIS 6,000 per household a year, yet a State Comptroller report published in October 2025 by Matanyahu Englman found that importers were not taking part in the process and that the relevant ministries had not published the information needed to implement it properly.

According to the report and testimonies from importers, the earlier reforms mainly reduced companies’ costs for lab tests and standards approvals, but those savings stayed with importers and did not reach consumers. The story says global shipping disruptions, including Houthi threats in the Red Sea and the Turkish boycott, pushed freight costs sharply higher, offsetting the regulatory savings. It adds that market concentration and cross-ownership between importers and retail chains also prevented the benefits from reaching store shelves. The new U.S. reform is presented as potentially lowering regulatory costs by 8% to 16%, but the article says price cuts will depend on stronger enforcement and oversight.