EU ministers to debate possible ban on trade with Israeli settlements in Brussels

EU foreign ministers are due to discuss a possible ban on imports from illegal Israeli settlements at a meeting in Brussels on Monday. The debate comes amid continuing divisions among the bloc's 27 member states over how to respond to Israel's government and the war in Gaza. No decision is expected at the meeting, and officials are not anticipating agreement on trade measures for months.

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A leaked European Commission paper seen by the reporting source sets out three options for restricting trade linked to settlements. Those options are a partial or total ban on imports, high tariffs that would make trade economically unviable, or an import licensing system. The paper says the measures could have a substantive impact on the EU-Israel relationship, including in light of Israel's upcoming election later this year.

The discussion is taking place against the backdrop of the wider conflict in Gaza and rising violence in the occupied West Bank. The reporting source said a UN inquiry found Israel to be committing a genocide in Gaza, while violence in the West Bank has killed at least 235 children. Under the EU-Israel agreement, goods from the occupied Palestinian territories, including the Golan Heights, Gaza and the West Bank, including East Jerusalem, are not entitled to the preferential trade terms that apply to Israel.

The issue has become a test of whether the European Union will move beyond statements of concern and use trade policy to respond to settlement activity. At least 10 European member states, including Belgium, the Netherlands and Spain, say the EU has an obligation to end trade with occupied territories. They point to a 2024 ruling by the International Court of Justice that called on Israel to end its occupation of the Palestinian territories as rapidly as possible and said states should take steps to prevent trade or investment relations that assist in maintaining the illegal situation.

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The Commission paper is described as cautious and bureaucratic, but it signals that trade restrictions are being considered at a formal level. The document also notes the political sensitivity of the issue, given the possible effect on the EU-Israel relationship and the timing before Israel's election. The debate in Brussels is therefore likely to shape the tone of the bloc's wider approach to the conflict, even if ministers do not reach a decision this week.

What remains unclear is whether the member states can bridge their differences enough to move from discussion to action. It is also not yet known which of the three options, if any, would gain enough support to advance. For now, the meeting is expected to clarify the range of measures under consideration rather than produce an immediate change in policy.

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