Title: Israeli Ministry to Approve European Regulation for Wider Market Access to Food and Toiletry Products
Subtitle: Decision Expected to Impact Cost of Living and Attract Foreign Retail Chains
Date: [Current Date]
The Ministerial Committee on the Cost of Living is set to convene today to approve the adoption of European regulations that will facilitate the entry of food and toiletry products from Europe into the Israeli market. The move aims to overcome bureaucratic obstacles and unique Israeli regulations that have hindered the import of these products.
According to sources familiar with the matter, Carrefour, one of the world’s largest retail chains, has faced challenges in importing its extensive range of private brands due to gaps between Israeli and European regulations. Currently, Carrefour is only able to import 500 out of the 5,000 products it owns under a private label, limiting consumer access to potentially more affordable options.
The Ministry of Health has advocated for the harmonization of Israeli regulations with European standards. However, the Ministries of Finance and Economy argue that this approach is inadequate and restrictive, and does not address the cost of living issue. They propose adopting the “Cassis Dijon” model, which allows for the automatic importation of products marketed in Europe, regardless of the completion of the regulatory adjustment process.
To resolve these differences, Prime Minister Benjamin Netanyahu has called for the ministerial committee to convene. While a decision was not reached during the previous meeting, it is expected that the committee will support the position of the Ministries of Finance and Economy and approve the adoption of European standards for products marketed in Europe.
The implementation of the European regulations is projected to have a significant impact on the cost of living in Israel. It would enable Carrefour and other foreign retail chains, like Spar, to import a wider range of products under their own brands. Additionally, institutional parallel imports by these retailers could potentially lower prices compared to the current market rates.
The adoption of European standards, a long-standing official policy of the State of Israel, is in line with previous reforms aimed at opening up the import market. However, the anticipated decision by the committee of ministers and Prime Minister Netanyahu is expected to pave the way for a substantial reform that truly expands the import of supermarket products, including food, toiletries, and feminine hygiene products.
The legislative process to fully implement the European standards is estimated to take time, with full implementation expected by January 2025. During this period, the various ministries will work on adapting Israeli regulations to allow imports from manufacturers worldwide that adhere to European standards.
The decision to recognize the European regulation is highly anticipated, as it holds the potential to address the high cost of living in Israel and attract foreign retail chains to enter the market.