Israel bans imports made with forced labor in wake of US tariff policy

The measure is expected to bolster the competitiveness of Israeli exporters in international markets, improve Israel’s trade position with its key partners and reduce trade barriers that hinder the country’s economy.

By JNS

The Israeli Cabinet on Sunday approved a proposal by Prime Minister Benjamin Netanyahu to ban the import into Israel of goods produced, whether in whole or in part, through forced labor.

“This is a move of moral, economic, and strategic importance, which strengthens the State of Israel’s commitment to combating human trafficking and forced labor while safeguarding the economic interests of the Israeli economy,” the Cabinet said in a statement.

The move follows the Trump administration’s announcement on Thursday imposing new tariffs of between 10% and 12.5% on dozens of countries “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”

The decision will affect the exports of some 80 countries, which account for 99.4% of U.S. imports, according to a United States Treasury Department fact sheet.

The U.S. decision will increase the tariff rate on Israel from 10% to 12%. Israeli officials hope the government’s latest move will help persuade Washington to restore the tariff rate to 10%.

Israel’s decision instructs the minister of economy and industry to prohibit the import of products manufactured through forced labor, in accordance with accepted standards in international law.

At the same time, an interministerial team headed by the National Economic Council in the Prime Minister’s Office will formulate an effective implementation and enforcement mechanism, which will be submitted for Cabinet approval within 90 days.

“The move puts Israel on a par with the world’s leading countries that are taking steps to prevent the entry into the markets of products produced using human exploitation and strengthens Israel’s credibility as a trading partner that operates in accordance with international standards. In addition to its moral value, the move is of significant economic importance,” Israel’s statement said.

The measure is expected to bolster the competitiveness of Israeli exporters in international markets, improve Israel’s trade position with its key partners and reduce trade barriers that hinder the country’s economy.

Under the decision, the government will appoint a designated authority, establish professional criteria for identifying goods produced through forced labor, and create reporting, objection, and appeals procedures.

The measures are intended to ensure effective enforcement, provide greater certainty for importers and uphold fair trade standards.

The government’s decision expresses Israel’s commitment to protecting human rights, promoting fair trade, strengthening the Israeli economy, and ensuring that Israel’s supply chains are based on the values of accountability, transparency, and fair competition, the Israeli statement said.