The “What’s Good for Europe is Good for Israel” reform was approved by the Knesset with the aim of facilitating the import of products to Israel by recognizing European standards, thereby increasing competition and reducing the cost of living.

Following the approval of the reform, American officials expressed interest in extending these regulatory relaxations to products that comply with U.S. standards. The Ministry of Economy confirmed that discussions have been initiated with American counterparts to expand the reform to include products manufactured in or for the U.S. These discussions are still in their early stages and are primarily focused on consumer goods that are relevant to the cost of living in Israel.

As part of the 2025 work plan conference of the Ministry of Economy and Industry, which took place in December, and in line with the ministry’s goals of increasing competition and lowering the cost of living ahead of the budget approval, the Minister of Economy and Industry has instructed to expand the “What’s Good for Europe – Is Good for Israel” reform to the American market. This would allow products that meet relevant U.S. regulations for Israel to enter the local market more easily, without unnecessary regulatory hurdles or redundant inspections, while maintaining health, public safety, and environmental protection standards.

The U.S. is Israel’s largest export market, yet the potential for increasing imports from the U.S. to Israel has not yet been fully realized. Opening up the Israeli market to more U.S. imports would provide Israeli consumers with access to a wider variety of products, enhance market competition, and help reduce prices.

In accordance with the minister’s directive, the import and regulatory teams at the Ministry of Economy will begin professional discussions in the coming days to assess the adoption of relevant U.S. standards in Israel. This will be done in coordination with all relevant stakeholders. Expanding the reform to include the American market is expected to ease the import process for businesses, improve product availability, and provide Israeli consumers with more diverse and attractive purchasing options.

Minister of Economy and Industry, MK Nir Barkat, stated:
“We are continuing to work toward creating real economic freedom in Israel. Following the implementation of the ‘What’s Good for Europe – Is Good for Israel’ reform, we are now aiming to expand it to the American market—because what is good for the U.S. is certainly good for the Israeli consumer. Increasing imports from the U.S. will encourage competition, introduce new players into the market, and lower prices for Israeli consumers. The Ministry of Economy will continue to act decisively to ease import processes and benefit consumers.”

As known, on March 1st, the third phase of the ‘What’s Good for Europe – Is Good for Israel’ reform came into effect. The next phase is expected to be implemented in May.

The expansion of the reform to include U.S. standards could have a significant impact on the import of products such as toys and baby products, which currently face import challenges due to regulatory differences between Israel and the U.S. Recognizing U.S. standards is expected to increase the variety of products available in Israel and enhance competition in the local market.

However, it should be noted that discussions with U.S. authorities are still in their early stages, and it is not yet clear which product categories will be included in future agreements or what the timeline for implementation will be.