Twelve countries (11 European countries and Canada) today announced that they will boycott products made by Jewish settlements in the West Bank. The joint move reflects a new low-point in relations between Israel and Europe over the situation in Gaza and the territories. Britain led the announcement, with Foreign Secretary Ed Miliband declaring that the UK had "taken a central role" in formulating the sanctions. The announcement by the list of countries, some of which have already taken the step and some of which have only declared their willingness to do so, was made following a failure to move forward with sanctions at the EU level due to the position of pro-Israeli countries.
The countries that have declared an embargo on trade with the settlements are: the UK, France, Canada, Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain and Sweden. Eight of these countries are members of the EU, Israel's largest trading partner, with about a third of exports. It is not known how much of Israeli exports to the EU originate from the settlements, but it has been estimated in the past at a few percent. Israel fears that the mechanisms to be established to verify the origin of Israeli goods, combined with a disincentive message to European companies about doing business with Israel, will have a cooling effect on trade with Europe.
"The actions of the Israeli government in the West Bank undermine the possibility of a two-state solution," the French government said in a statement announcing the sanctions. "Today, Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and the UK confirm their plan to introduce restrictions at national and/or EU level on trade in goods with settlements that are illegal under international law, or are actively considering these and other measures, in accordance with their national procedures."
A sweeping policy shift
Since becoming UK Prime Minister in July Andy Burnham has faced internal pressure within the Labour Party to "toughen up" Britain’s approach to Israel. A letter signed by about a third of the party’s MPs demanded he take practical steps. The issue is set to feature at Burnham’s first party conference as prime minister later this month, and the government’s announcement is seen as an attempt to announce measures now to take the issue off the agenda. In Europe, too, some countries have hardened their tone towards Israel, particularly due to the government’s approval of a plan to expand construction in the E1 area near Jerusalem, in a way that Europeans say will "bury any chance of a two-state solution."
UK Foreign Secretary Ed Miliband appeared today to announce the steps, in what is seen as a "reset" of relations with Israel. Miliband said he was a "proud British Jew" and dismissed criticism from the US ambassador to Israel, Mike Huckabee, who accused him of "Jewish hatred" and "discrimination" over the sanctions.
Among the measures Miliband announced: a ban on trade with settlements and a ban on having business relations with companies that build in settlements. It is not yet clear whether the ban will also apply to services, or only to goods. Israel exports $1.5 billion a year to Britain, according to the latest figures. At the same time as the announcement was made, and to the surprise of the European media, a number of other countries announced the adoption of sanctions on trade with settlements.
France and Sweden initiated a similar proposal at EU level in recent months, but it was torpedoed by relatively pro-Israel countries such as Germany and Italy, under the EU's principles that require a qualified majority for some decisions. After the failure at the EU, the countries that expressed support for the boycott turned to the independent declaration.
The legal basis for the countries' move is the 2024 International Court of Justice (ICJ) ruling on the illegality of the Israeli occupation of the territories. Ireland was the pioneer in formulating economic sanctions on this basis, with Spain. They were joined by Belgium and the Netherlands, where the boycott will take effect on September 22.
From Israel's perspective, this is a continuation of the diplomatic drift against it in Europe, which includes the use of economic pressure to curb the government's policy in the administered territories. In the past, proposals have also been discussed to suspend Israel’s association agreement with the EU, which forms the basis for trade, diplomatic, cultural and other relations. Israel reacted sharply last month to declarations by the Netherlands, and Foreign Minister Gideon Sa'ar threatened to remove Britain from the multinational supervision of the ceasefire in Gaza if it imposes sanctions.
Published by Globes, Israel business news - en.globes.co.il - on September 8, 2026.
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