Israeli-US Trade Tariff Order Under Review by Finance Committee

The Finance Committee, chaired by MK Hanoch Milvitzki, today discussed the trade tariff and defense order (import tariff resulting from the preference agreement) (interim instruction), 2025. The order is part of a new trade agreement (ATAP) with the Trump administration, under which Israel has committed to gradually eliminate all tariffs on agricultural imports from the US by 2035.

During the discussion, the Minister of Agriculture and the Minister of Economy presented that the demand from the US was unequivocal towards all countries of the world, and that at the request of the State of Israel and within the framework of negotiations, the cancellation of 50 products was spread over a decade, and that in parallel, steps are being promoted and will be promoted to provide a solution to the various sectors that will be affected by the move.

Committee members, opposition and coalition, demanded that the response be given in parallel with the approval of the order, with clear promises and a full response to the farmers and factories that will be affected, and some emphasized that they would oppose the order without these steps.

In response to the question of the committee chairman, MK Hanoch Milvitzki, the Treasury stated that they do not know how long it will take to give an estimate and a picture regarding the necessary steps, and that the situation requires examination. The Treasury also claimed that they were excluded from the negotiations on the agreement, a claim rejected by the Minister of Economy, who noted that a representative of the office was present in the contacts and even expressed opposition to it.

The committee chairman summed up the discussion and said: 'A continuation discussion was set after we heard from the Manufacturers Association and representatives of the farmers who sat with them and they are towards summaries on this issue. I do not see how to promote this legislation, without this thing getting a solution. Since the Treasury does not know how to give us a schedule, I want to rush you to explain in the Treasury that in order to advance with the order, you need to find time, sit with whoever needs, formulate a policy and then sit with all the parties and see how to deal with the damage that this agreement causes. After that, a meeting is entered, update us, until then I do not see a way to advance with the legislative process.'