Israeli Knesset Approves Fast-Track Import Reform for US Products to Lower Costs

The Israeli Knesset has passed a significant reform allowing faster import of American products into Israel, aiming to reduce living costs and increase market competition. The Standards Law Amendment No. 21 (2026) was approved unanimously by 27 members, enabling importers, manufacturers, and sellers to rely on compliance with US federal regulations instead of Israeli standards for certain products. This new "American track" complements a similar reform implemented about 18 months ago for European products under the slogan "What’s good for Europe is good for Israel."

Under the law, businesses can choose to import, produce, or sell products meeting US regulatory requirements as an alternative to Israeli standards, provided the products are made in the US or Israel and accompanied by invoices or declarations verifying their origin. However, key exceptions include food products, motor vehicles, and fire safety equipment and processes, which are excluded from this streamlined process, mirroring exclusions in the European reform.

Economy and Industry Minister Nir Barkat hailed the law as a "historic day for Israel’s economy," emphasizing that it will enhance competition, diversify imports, and lower prices for consumers. Barkat noted the reform builds on the success of the European import pathway, which has already eased bureaucracy and expanded product variety in the Israeli market.

The legislation follows a government decision from October 3, 2025, which mandated advancing a law to facilitate imports from the US by adopting federal standards for officially regulated products. This initiative is part of broader government efforts to combat high living costs and stimulate market competition. Unlike the European reform that focused mainly on food and cosmetics, the American reform applies to a wider range of products, excluding only a few critical categories.