Israel to Allow Duty-Free Food Imports to Boost Competition

Israel's Ministry of Economy has finalized the allocation of quotas for duty-free food imports for 2027, aiming to foster greater competition and curb the rising cost of living. The measure is expected to impact prices in Israeli supermarkets.

Several major retail chains, including Osher Ad, Yohananoff, and Tiv Taam, will benefit from these import privileges. Osher Ad and Yohananoff are permitted to import frozen vegetables and natural grape juice from Europe without tariffs. Tiv Taam's affiliated company, Israco, received broader quotas, allowing duty-free imports of olive oil, European and British cheeses, pickled cucumbers, vegetable mixes, and wine.

These additional imports are intended to broaden product selection and reduce retailers' reliance on domestic suppliers. However, experts caution that price reductions are not guaranteed. Factors such as energy, fuel, logistics costs, and municipal fees could influence the final consumer prices.

Other significant suppliers, such as Unilever and Sugat, also received additional quotas. The ultimate impact on consumers will hinge on the extent to which genuine competition intensifies among the retail chains.