Israel’s Ministry of Justice has established specific criteria for when domestic regulators can integrate foreign or international rules into national law. This method, known as incorporation by reference, allows agencies to adopt preexisting standards from private organizations, multinational bodies, or other governments without rewriting them for local use. The approach is particularly valuable in fields where professional and widely accepted international standards—such as technical specifications or financial oversight—already exist, as it avoids the need to create entirely new domestic regulations from scratch. By leveraging existing frameworks, Israel can ensure its laws remain current with rapidly evolving global practices while reducing the bureaucratic burden of constant legislative updates.
The technique is widely used in areas where international standards are already well-developed, including technical specifications and financial oversight. For Israel, it reduces the workload of creating entirely new domestic regulations while ensuring compliance with shifting global practices. The ministry’s rules extend to standards from bodies such as the European Union, the United States, or private groups like the International Organization for Standardization (ISO). This flexibility is especially critical in sectors where the pace of regulatory change outstrips domestic lawmaking capacity, such as digital payments, where alignment with global norms is essential for market access and innovation.
A notable case involves Israel’s regulation of digital payment services. To encourage international providers to enter its digital wallet market, the legislature designed the law to resemble the European Union’s equivalent regulation. Once adopted, the foreign standard gains legal force in Israel, eliminating the need for frequent updates to domestic legislation. This method ensures that Israeli financial institutions operate under a framework that is both internationally recognized and legally binding, supporting confidence among global providers while maintaining regulatory consistency.
U.S. Debates Innovation vs. Public Access Risks
Incorporation by reference has sparked discussion, particularly in the United States, where federal agencies use the approach to incorporate private-sector expertise. While this keeps regulations up to date with technological and industry changes, critics warn that privately developed standards—often protected by copyright, can restrict public access. The Administrative Conference of the United States acknowledges that the method supports innovation but may also create obstacles if standards are restricted. Beyond copyright concerns, the process raises broader questions about democratic accountability, as the incorporation of external norms can limit the role of elected officials in shaping legal frameworks.
Israel’s main concern revolves around democratic accountability. Since incorporated rules originate from foreign governments or non-governmental organizations, elected officials have limited direct influence. To address this, the ministry has imposed strict boundaries: no foreign rule can supersede core rights, such as occupational freedom or property protections. For example, a foreign standard that overrides domestic professional licensing would conflict with Israeli legal principles. The guidelines ensure that incorporated regulations do not affect the freedom of occupation or property rights by displacing domestic judgment on questions that affect fundamental freedoms.
The guidelines also outline how updates to incorporated standards are handled. Israel requires that regulators take an affirmative step to adopt updates and inform the public of them. This rule reflects a deliberate choice to preserve ongoing Israeli supervision over “imported norms” rather than allowing foreign changes to flow automatically into domestic law. In narrow circumstances, the guidelines also allow for automatically adopting future changes to incorporated standards when professionals in the affected field must remain up to date on the regulations, as is the case with the psychiatric Diagnostic and Statistical Manual of Mental Disorders (DSM), published by the American Psychiatric Association and used by clinicians and researchers.
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Translation and Copyright Complicate Public Access
Language and public access are key considerations. Since many foreign standards are published in English or other languages, Israel requires regulators to provide Hebrew translations and ensure incorporated documents are publicly available. Copyrighted standards, such as those from ISO, may present challenges, but the ministry expects agencies to balance costs with transparency requirements. The guidance emphasizes that public accessibility is a legal precondition for incorporation, meaning regulators must either secure permission to publish copyrighted materials or find alternative ways to ensure the public can access the standards they govern.
Enforcement presents another challenge. The guidance restricts criminal penalties for violations of incorporated rules, allowing fines only when violations are clearly defined and public access is guaranteed. This reflects Israel’s careful approach to integrating foreign norms without undermining transparency or accountability. The framework ensures that while foreign standards can be adopted for efficiency, their application remains subject to Israeli legal safeguards, preventing arbitrary or opaque enforcement.
The framework demonstrates how a small, globally connected economy can reconcile the need for best practices with the preservation of sovereignty. The rules ensure foreign standards benefit the public, not as a shortcut, but as a deliberate strategy to align with global developments while upholding domestic legal standards. By selectively adopting external norms, Israel can leverage international expertise without surrendering control over its legal system, striking a balance between efficiency and autonomy.
Balancing Speed and Sovereignty in Rulemaking
However, the system faces challenges. While incorporation by reference accelerates rulemaking, it transfers some authority to external bodies. The ministry’s safeguards, translation requirements, democratic controls, and managed updates, aim to reduce risks. Whether this balance endures depends on how regulators apply the guidelines in practice. For instance, if foreign standards evolve in ways that conflict with Israeli values or public expectations, the system’s flexibility may be tested, particularly in areas where global norms are still developing.
The next critical test will occur in fast-moving sectors like cybersecurity and artificial intelligence. If Israel’s approach proves flexible, other nations may adopt a similar model, borrowing global rules while retaining control. These fields, where technical standards and ethical frameworks are still emerging, present both an opportunity and a risk: the ability to quickly adopt international best practices could accelerate innovation, but it also requires robust mechanisms to prevent unintended consequences, such as overreliance on foreign definitions of security or ethical conduct.
