EU trade restrictions Israel have become a pressing diplomatic issue right now as nine European Union countries formally requested the European Commission to develop proposals for discontinuing trade with Israeli settlements in occupied Palestinian territories. The coordinated push comes amid mounting legal risks Israel settlements trade poses following the International Court of Justice advisory opinion declaring such settlements illegal under international law.
Belgium, together with eight other EU Member States – Finland, Ireland, Luxembourg, Poland, Portugal, Slovenia, Spain, and Sweden – asks the European Commission to examine how trade in goods and services linked to illegal settlements in the Occupied Palestinian Territory can be…
— Maxime PREVOT (@prevotmaxime) June 19, 2025
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How EU Trade Restrictions on Israel Address Legal Risks and Sanctions
Nine European Union countries called on the European Commission to come up with proposals on how to apply EU trade restrictions on Israeli settlements in the occupied Palestinian territories. Foreign ministers from Belgium, Finland, Ireland, Luxembourg, Poland, Portugal, Slovenia, Spain and Sweden signed the letter, addressed to EU foreign policy chief Kaja Kallas.
Belgian Foreign Minister Maxime Prevot stated:
“Trade cannot be disconnected from our legal and moral responsibilities. This is about ensuring that EU policies do not contribute, directly or indirectly, to the perpetuation of an illegal situation.”
The ministers also pointed to a July 2024 advisory opinion from the International Court of Justice, which said Israel’s occupation of Palestinian territories and settlements there are illegal. ICJ President Nawaf Salam emphasized the legal risks Israel settlements trade creates and also said:
“Israeli settlements in the West Bank and East Jerusalem, and the regime associated with them, have been established and are being maintained in violation of international law.”
EU Countries Israel Settlement Policy Under Pressure
The nine EU countries Israel settlement policy initiative represents unprecedented pressure on the European Commission right now. Belgium, the initiator of the push, also said European countries should ensure their trade policy follows international and humanitarian law provisions.
Ministers wrote in their letter:
“We have not seen a proposal to initiate discussions on how to effectively discontinue trade of goods and services with the illegal settlements. We need the European Commission to develop proposals for concrete measures to ensure compliance by the Union with the obligations identified by the Court.”
The EU remains Israel’s largest trading partner, accounting for €42.6 billion in trade last year. However, it remains unclear how much of this trade volume includes products from Israeli settlements in the occupied Palestinian territories.
Palestinian envoy Riyad al-Maliki also had this to say:
“No aid, no assistance, no complicity, no money, no arms, no trade…no actions of any kind to support Israel’s illegal occupation.”
At the time of writing, the EU trade restrictions Israel debate continues to intensify as member states also prepare for high-stakes discussions on the association agreement review.
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