The European Union (EU) has moved to develop trade measures against Israeli settlement activities in the occupied West Bank. EU foreign ministers are discussing three different options to restrict trade with the settlements at today's meeting in Brussels.
A senior EU diplomat and a European official who spoke to Reuters said the discussions are based on a confidential document prepared by the European Commission. The document includes three main options: an import licensing system, high customs duties, and a full trade ban.
Challenges in the decision-making process
Diplomats do not expect a concrete decision to emerge from today's meeting due to disagreements among member states. At the heart of the disputes is the question of how such a decision would be taken. While some diplomats argue that a ban could be adopted by qualified majority, the Commission document indicates that unanimity may be required.
Division among member states
The EU often struggles to take strong steps in Middle East policy due to deep divisions among member states. However, the recent increase in settler violence and the settlement expansion policies of Israeli Prime Minister Benjamin Netanyahu's government have increased pressure from some member governments to act.
According to a Politico report based on four diplomats, countries such as Belgium, the Netherlands, and Spain are trying to push the Commission to present a proposal that would restrict trade with Israeli settlements. In contrast, a senior European diplomat said Germany plans to veto or abstain from any customs duty decision.
International law background
The International Court of Justice (ICJ), in its advisory opinion published in July 2024, found Israel's occupation of Palestinian territories and settlement construction in the West Bank to be unlawful. The court stressed that states must take steps to prevent commercial relations that help sustain this situation.
Israeli Foreign Minister Gideon Saar last year described efforts by some European governments to implement this opinion as 'shameful'.
Increase in settlement activity
Israel approved a plan on July 3 to establish 13 new settlement units in the central West Bank. According to data from the Palestinian Center for Israeli Studies (MADAR), there has been a major increase in settlement outposts in recent years. While an average of 8 new outposts were established per year between 2012 and 2022, this number rose to 32 in 2023, 62 in 2024, and 86 in 2025.
In late June, the Israel Hayom newspaper wrote that settler movements in the West Bank had prepared a plan targeting Area A, which is under full Palestinian control, in clear violation of the Oslo Accords.
The EU had previously imposed sanctions on 4 entities and 3 individuals in May for serious human rights violations in the occupied West Bank.
