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Israel: Preference for Israeli-Made Textile Products

(Feb. 2, 2011) On December 21, 2010, the Knesset (Israel's Parliament) passed an amendment to the Public Tenders Duty Law, 5752-1992. The Law imposes an obligation on the government and its agencies to advertise a public tender that will be accessible equally to all before undertaking any contractual obligations regarding any transactions in real estate, goods, or services.

The December 2010 amendment authorizes the government to permit the Ministry of Defense and the Ministry of Internal Security to give preference to acquisition of textile products manufactured by an Israeli citizen, Israeli resident, or Israeli-registered company. The authority provided by the Law will expire within two years following the passage of the amendment.

Explanatory notes on the bill point out that a similar arrangement is applied by the United States, which prohibits foreign manufacturers from participating in public tenders issued by the U.S. Department of Defense for the purchase of textile products. (Public Tenders Duty Law (Amendment No. 20) (Temporary Provision) 5771-2010 & bill [both in Hebrew], Knesset website, &, respectively (both last visited Feb. 1, 2011).)