The European Commission has put forward plans to limit trade with Israel and impose sanctions on certain Israeli ministers as a response to the ongoing war in Gaza. These measures, if adopted, would be the most stringent action taken by the European Union regarding the conflict.
The proposal, previously mentioned by Commission President Ursula von der Leyen, suggests suspending trade-related provisions of the EU-Israel Association Agreement. This would revoke the preferential access Israeli goods currently have in European markets, leading to the imposition of tariffs on exports, especially agricultural products such as dates and citrus fruits.
However, the likelihood of these measures being approved is uncertain, and they have been criticized by Israel, which described them as “morally and politically distorted.” Trade restrictions necessitate a qualified majority of approval from EU member states, while sanctions against individuals require unanimous consent. Key member states, including Germany and Italy, oppose the measures, while others such as Ireland and Spain advocate for stronger actions, complicating the approval process.
EU foreign policy chief Kaja Kallas has acknowledged the challenges involved, noting that political positions remain largely unchanged. The proposed package aims to target “Hamas terrorists” and unnamed “extremist ministers” in the Israeli government, as well as “violent settlers” in the West Bank.
The EU is Israel’s largest trade partner, responsible for 32% of its goods trade in 2024, amounting to €42.6 billion. However, the economic impact of suspending tariff preferences is estimated to be modest, around €227 million annually. The only immediately enforceable measure is the suspension of bilateral support to the Israeli government, which totals €9.4 million from a budget of €14 million allocated for 2020-2024, and does not require member state approval.
Mediterranean Commissioner Dubravka Šuica noted that funding for programs aimed at combating antisemitism and supporting civil society will remain unaffected. Israeli Foreign Minister Gideon Saar criticized the Commission’s proposals, asserting that actions against Israel could harm Europe’s interests and vowing that any retaliatory measures would be taken in response. The timeline for voting on these proposals by EU member states remains unclear.
Source: https://www.bbc.com/news/articles/cvgr4nj7405o?at_medium=RSS&at_campaign=rss