UK Imposes West Bank Settlement Trade Sanctions Joined by European Allies

Britain announced trade bans on West Bank settlements, joined by European nations and Canada. Israeli President Herzog condemned the move as a grave error, while US Ambassador Huckabee criticized it as discriminatory.

Israel HayomAuthors: Dudi Kogan, Danny Zaken, Nitzan Cohen
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UK Imposes West Bank Settlement Trade Sanctions Joined by European Allies
Photo: Israel Hayom / אנדי ברנהאם, ראש ממשלת בריטניה | צילום: AFP

British Foreign Secretary David Miliband announced a series of sanctions against Israel in the House of Commons in London on Tuesday, including a ban on trade in goods and certain services originating from settlements in the West Bank. A number of European countries, along with Canada, announced they would join the initiative: France, Canada, Denmark, Finland, Iceland, Norway, Poland, Portugal, Spain, and Sweden.

London's Rationale and Measures

London cited several reasons for the step: settler violence against Palestinians in the West Bank, which it claims does not receive a sufficient response from Israel; the advancement of construction plans in the E1 area between Jerusalem and Ma'ale Adumim; and allegations regarding an Israeli refusal to allow medical equipment into Gaza.

Miliband stated at the outset of his remarks: "I say to anyone who undermines Israel's right to exist — you are wrong. Britain and Israel will continue to cooperate around shared national security interests." In addition, Miliband announced that Britain is imposing sanctions on Hezbollah's financial arm, Al-Qard al-Hasan.

After announcing the ban on trade in products manufactured in Israeli settlements in the West Bank, Miliband addressed the establishment of a Palestinian state: "Ensuring a two-state solution in full is the North Star of this government's policy."

In one of his most extreme and unusual statements, Miliband said: "The British government agrees that an ethnic cleansing of Palestinians is taking place in areas of the West Bank."

"We will expand existing human rights sanction laws so they can be used more quickly to deter settler expansion, including the development of the E1 area. Today Britain will impose sanctions on another group of extremist settlers. The legislation will enter into force within six to nine months. We will support trade with Israel within the Green Line boundaries."

International Alignment and Trade Impact

According to the British Department for Business and Trade, annual bilateral trade between Israel and the UK stands at 5.9 billion pounds: Israeli exports amount to 2.4 billion pounds, and imports from the UK total 3.5 billion pounds, with roughly half of each consisting of goods and the remainder services. West Bank produce is a tiny fraction of all this, focusing mainly on agricultural products and wine.

Immediately, the economic impact may be limited, but it could complicate trade between the two countries in general and create a "chilling effect" on economic activity.

Work and Pensions Secretary Pat McFadden clarified prior to the announcement that the measures "are not intended to be a boycott of all Israeli goods" but are "specifically targeted at settlement expansion."

Criticism and Political Reactions

Conservative Party Leader Kemi Badenoch attacked the move in an article published on Tuesday in the Jewish Chronicle, arguing that the trade ban will effectively become a boycott of Israel as a whole because British businesses will struggle to separate "legitimate" from "illegitimate" activity, encouraging protests and violence against companies trading with Israel. She wrote that the government is endangering one of Britain's most critical security relationships.

"Israel is an important intelligence partner. Israeli intelligence has helped British authorities prevent terrorist attacks and protect British lives. To pick an unnecessary fight with a country that helps us fight terror is an act of national self-harm."

Badenoch linked the move to internal Labour politics, writing that the Jewish community is repeatedly promised the party has changed since the days of Jeremy Corbyn, but actions tell a different story. Corbyn may have lost the Labour leadership, she argued, but he won the argument within the party.

US Ambassador to Israel Mike Huckabee, who previously accused the British government and Miliband of "hatred of Jews," attacked the move again during a BBC interview, clarifying that there will "undoubtedly be an American response."

"This is an irrational action. I do not understand what it is supposed to achieve. If Britain is truly interested in addressing things it considers wrong, where are the sanctions on North Korea, China, Russia? This is discrimination against the Israeli government, discrimination against the Jewish people, and I do not understand the logic behind it."

Israeli Response

President Isaac Herzog addressed the move during a ceremony at the President's Residence marking 30 years of Israeli participation in European Union research and innovation programs.

"If this happens, and other countries may join, I believe this will prove to be a grave error in judgment and a choice on the wrong side of history. This will be a blatant interference in the democratic elections of a sovereign country, and the step will also harm Palestinians by depriving them of business and jobs. Sanctions are not a solution. Dialogue is. I say to all foreign governments: Stop! Step away from the dead end of sanctions and boycotts, and turn toward constructive dialogue and cooperation."

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