← Country Risk Profiles
2.6

weighted score 2.6 · nine dimensions

Country Risk Profile

Israel

Sourcing risk, regulatory exposure and audit intelligence for Israel-origin supply chains.

Forced & child labour

2

Low structural risk. Some migrant worker exploitation documented in agriculture and construction but not systemic forced labour. No ILAB listings for Israeli-origin goods.

Worker rights & FOA

3

ILO core conventions ratified. Histadrut (national trade union) active. Some constraints on migrant worker organising rights.

OHS & audit transparency

2

Audit access generally unrestricted. OECD-standard occupational health and safety framework. Credible third-party audit infrastructure available.

Food & product safety

2

Israeli Standards Institution (SII) aligned with international frameworks. Low RASFF alert rate for Israeli-origin food products.

Environmental & regulatory

2

Environmental Protection Ministry functional. Low EUDR commodity exposure. Water management technology is a national strength.

Governance & anti-corruption

3

TI CPI 62/100. Judicial reform controversy raised rule-of-law concerns. Generally functional institutions but political turbulence is a monitoring factor.

Tariff & preferential access

3

EU Association Agreement provides preferential access. Settlement product origin complexity requires careful compliance management.

Non-tariff barriers

3

Settlement labelling requirements under EU consumer protection rules. Some product categories require enhanced origin documentation.

Supply chain traceability

3

Generally good traceability in technology and pharmaceutical sectors. Settlement origin verification adds complexity for certain product categories.

Governance & Anti-Corruption

Governance & Anti-Corruption

Transparency International CPI
Israel scores 62/100 on the 2024 Corruption Perceptions Index — placing it in the upper-middle range globally. This reflects a generally functional anti-corruption framework but with documented concerns around political interference and judicial independence.
Judicial reform controversy
The 2023 judicial overhaul legislation sparked mass protests and international concern. The reforms, which sought to limit Supreme Court oversight of government decisions, raised questions about rule of law stability and institutional independence — a material factor for long-term compliance planning.
Migrant worker issues
Israel's agricultural and construction sectors rely substantially on migrant workers from Thailand, the Philippines, and other countries. Documented concerns include recruitment fee exploitation, passport confiscation, and constrained labour mobility — areas monitored by the ILO and US State Department TIP Report.

Trade & Tariff Access

Trade & Tariff Access

EU Association Agreement
The EU-Israel Association Agreement provides preferential tariff treatment for industrial goods and certain agricultural products. This gives Israeli exporters meaningful cost advantages over MFN-rated competitors in the EU market.
Settlement product complexity
EU Regulation requires that products originating from Israeli settlements in the occupied territories do not benefit from EU-Israel preferential tariff treatment. Rules of origin verification for settlement-produced goods creates compliance complexity for EU importers — requiring careful origin documentation and due diligence.
Tariff score
Tariff score of 3 (low risk) reflects the comprehensive EU preferential access. However, the settlement origin complexity means that compliance teams must verify product origin more carefully than for most EU Association Agreement partners.

Labour & Social Compliance

Labour & Social Compliance

ILO ratification
Israel has ratified most core ILO conventions including C087 (Freedom of Association) and C098 (Right to Organise). Labour law framework is generally well-developed compared to regional peers.
Agricultural sector risk
Seasonal agriculture relies on migrant workers under bilateral agreements. US TIP Report has flagged recruitment practices and working conditions. Thai agricultural workers in particular have been subject to documented exploitation in some cases.
Audit access
Social compliance audits (SMETA, BSCI) are generally feasible and credible in Israel. No systemic barriers to independent audit access. This is a significant advantage over many Middle Eastern sourcing origins.