UK bans trade with Israeli West Bank settlements, Israel retaliates

3 min read
UK bans trade with Israeli West Bank settlements, Israel retaliates
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Britain has banned imports of goods and some services linked to Israeli settlements in the occupied West Bank, prompting Israel to close the UK consulate in East Jerusalem and bar a dozen British MPs from entering the country. France and Canada joined the ban, moves that highlight the erosion in UK-Israel relations, with bilateral ties at their weakest in decades.

UK unveils import ban and new sanctions

Foreign secretary Ed Miliband told parliament on Tuesday that the UK would introduce an import ban on goods from illegal settlements in the occupied territories, alongside a new sanctions regime targeting companies and individuals that finance or build settlement infrastructure. He said the UK would also refuse all arms-export licence applications tied to the occupation and ban advertisements of settlements in the UK.

According to the Financial Times: Miliband accused Jewish settlers of "ethnically cleansing" Palestinians in parts of the West Bank. He also said the UK government's official view is now that the occupation itself is unlawful, citing a 2024 International Court of Justice ruling. Legislation to enact the measures would follow within six to nine months, he added.

France and Canada join, Israel retaliates

France and Canada joined the trade ban, following the Netherlands, Ireland, Belgium, Spain and Norway, which had already acted. Netanyahu's government responded immediately: it closed the UK consulate in East Jerusalem, banned a dozen British MPs — including Jeremy Corbyn and Diane Abbott — from entering Israel, and expelled British officials from the US-led coordination centre for postwar Gaza.

Israeli foreign minister Gideon Sa'ar dismissed Miliband's announcement as outrageous and morally distorted, saying the UK had no chance of succeeding in changing Israeli policy. Mike Huckabee, the US ambassador to Israel, warned of American retaliation and other implications for the UK, including its access to Israel's pharmaceutical sector.

Domestic reaction and Gaza accountability

Conservative shadow foreign secretary Tom Tugendhat said the economies of Israel and Palestine are too interconnected for a targeted ban to work, while the UK's Chief Rabbi, Sir Ephraim Mirvis, called the move a dark day for British Jews. Some Labour MPs have also warned the step could fuel antisemitism at home and help ultranationalist candidates ahead of Israel's Knesset elections next month.

Turning to Gaza, Miliband said the UK's position is to support accountability for what has happened, adding that war crimes appear to have been committed, though he said the question of genocide should be decided by courts. Miliband said Britain would continue important trade with Israel and defended the country's right to exist, but said the two-state solution would become unviable if Israel proceeds with plans to build about 1,200 housing units in the West Bank's E1 area.

Source: Financial Times

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