Legislation passes to cut import prices by relying on European quality standards

The so-called “What’s good for Europe is good for Israel” reform passes into law after being approved in its second and third readings in the Knesset plenum 22-0.

The legislation is expected to allow imported goods with European quality standards or certification to be automatically standardized, without requiring additional regulatory approval by the Standards Institution of Israel, as is currently the case.

The Finance Ministry says the reform will apply to a “wide range of food products, cosmetics, and electrical appliances,” but does not specify which products are included and does not provide a date when the legislation will come into effect.

“Today we are making history” and are “breaking through the barriers that have caused the high price of consumer goods in Israel for decades,” says Economy Minister Nir Barkat, calling the measure “a reform that promises change for generations.”

According to the Finance Ministry, “the price differences between Israel and the other OECD countries have led to the average family in Israel paying over NIS 10,000 ($2,600) more each year for products included in the reform, and the reform is expected to reduce this gap significantly.”