Following months of pressure and delays, the European Commission released a set of options on Thursday, July 10, aimed at restricting trade between the European Union and Israel’s illegal settlements. These measures, which will be discussed by EU foreign ministers on Monday, July 13, come in response to repeated calls from a growing majority of member states seeking action on the issue.
The Commission has provided a menu consisting of three distinct options: an import-licensing regime, the application of higher tariffs, and a complete trade ban. However, critics including the European Middle East Project argue that President Ursula von der Leyen and trade commissioner Maroš Šefčovič have failed to take the definitive step of tabling a concrete legislative proposal, instead offering inconclusive choices. Of the three, only a trade ban is viewed as both legally and practically sound, consistent with the EU’s long-standing position that the settlements are illegal and detrimental to peace.
A detailed proposal published by the European Middle East Project suggests implementing a regulation under Article 207 of the Treaty on the Functioning of the European Union (TFEU). This approach would ensure trade policies align with international law, moving beyond mere political gestures. The organization cites the International Court of Justice, which previously identified the prevention of trade that sustains illegal settlements as a legal obligation. Economically, the move is justified by the fact that EU imports from these settlements are 15 times higher than imports from Palestinians, despite the settlements relying on land and resources acquired without consent.
Addressing concerns about enforceability, experts argue that an import ban would be more effective than current policies. Presently, settlement goods are often mislabeled as products of Israel to bypass standard tariffs. An outright ban would create significant risks for businesses attempting to obfuscate the origin of their goods, as they would face the potential for seized or destroyed shipments. Furthermore, technical measures already proposed or enacted by nations like Spain and the Netherlands could be integrated to prevent circumvention. Banning trade with the settlements is also practically enforceable.
As momentum builds—highlighted by recent indications from British prime minister-in-waiting Andy Burnham that the UK may also move to ban settlement imports—proponents are urging EU ministers to demand a coherent legislative proposal. The call is for the Commission to stop delaying and act in accordance with the legal requirements of EU treaties.
Drawing on months of research and consultations with lawyers, trade experts and former and current EU officials, we propose a regulation under the EU’s Common Commercial Policy (Article 207 TFEU). Such regulation should aim at ensuring that EU trade complies with international law and does not help sustain the illegal settlements economically.
The EU is bound by its treaties to respect international law in its external policies, includig trade. Therefore, stopping imports from settlements is not just an option but a legal requirement.
