Norway opens consultation on bill to ban trade with Israeli settlements

Norway has opened a consultation on a new bill that would ban trade with Israeli settlements in the occupied Palestinian territory. The proposal would also restrict certain property-related transactions linked to the settlements, according to the government. The move marks a further tightening of Oslo's policy on settlement activity.

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Foreign Minister Espen Barth Eide said the settlements are in breach of international law and contribute to displacement and violence. He said the government intends to prohibit trade with what he described as unlawful settlements. The ministry said the planned rules would cover goods produced in the settlements, as well as the purchase of property and related services.

The proposal would also bar services connected to the construction, renovation, purchase or sale of property in the settlements. It would further prevent the acquisition of commercial enterprises whose head office and production facilities are located there. Eide said Norwegian citizens and companies must not contribute to maintaining the development, adding that the government wants to set firm limits for Norwegian trade and business activity.

The move has wider political significance because Norway recognised the state of Palestine in 2024, alongside Ireland and Spain. That decision prompted a sharp response from the Israeli government, which withdrew its ambassadors from Oslo, Dublin and Madrid and summoned the Norwegian, Irish and Spanish representatives in Tel Aviv. The latest proposal extends Norway's already critical stance on settlement activity into trade and property policy.

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It also comes after Norway joined five other countries last week in coordinated sanctions targeting networks accused of financing, enabling and carrying out settler violence against Palestinians in the Israeli-occupied West Bank. The government said the settlements and abuses by violent settlers are making the situation in the West Bank increasingly untenable. It said civilians are being killed, the economy is being strangled and local communities are being destroyed.

What happens next will depend on the consultation process and whether the bill is brought forward for formal approval. It is not yet clear how broad the final restrictions would be or how they would be enforced in practice. The proposal is likely to remain closely watched because it could affect Norwegian trade, business activity and diplomatic relations tied to the conflict.

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