New Study Reveals Tuna Tariff Cut Lowered Prices Despite Union Claims of Failure

A recent study by the Arlozorov-Yesod Institute, affiliated with the Histadrut labor federation and its Consumer Authority, labeled the reduction of tariffs on canned tuna imports as a failure. However, a detailed analysis of the study’s own data reveals the opposite: the tariff cut significantly lowered tuna prices in Israel relative to the high prevailing market prices.

The tariff reduction began gradually in 2013, aiming to reduce the cost of canned tuna, which is entirely imported since Israel has no tuna fishing industry. Previously, local factories imported bulk tuna for repackaging, but tariff cuts made direct import of finished cans more economical, increasing product variety and lowering prices.

While the study noted only a 1.1% price drop over ten years, it overlooked that global tuna prices rose sharply during this period. Adjusted for these global price increases, the tariff cut effectively reduced Israeli tuna prices by about 6%. Compared to a 13.4% rise in general food prices (excluding fruits and vegetables), tuna prices remained stable, demonstrating the tariff cut’s success.

The study also found that each shekel cut in tariffs translated into a 74 to 86 agorot reduction in consumer prices, with Israeli prices falling even as French prices rose. Despite this, the study emphasized limited competition growth and a decline in local production, which it linked to employment concerns in peripheral regions. However, independent analysis showed local tuna factories employed only about 400 workers with high job mobility.

This research fits a pattern of Histadrut-affiliated studies opposing import liberalization, often framing tariff cuts as failures despite evidence of consumer price benefits. The Histadrut responded by calling for balanced policies that reduce prices while protecting food security, local production, and employment. The Arlozorov forum defended its broader analysis, emphasizing the need to assess long-term impacts on prices, competition, and local industry rather than focusing solely on initial price drops.

Overall, the case of tuna tariffs highlights the complexity of trade reforms in Israel and the competing interests shaping public debate on cost of living and market openness.