Gaza fallout: Nine EU nations call for Israel trade ban

A coalition of nine European Union (EU) countries has called on the European Commission to present concrete proposals to end trade with Israeli settlements in the occupied Palestinian territories, citing concerns over international law violations and ethical implications.

This was disclosed in a formal letter addressed to EU foreign policy chief Kaja Kallas and obtained by Reuters on Thursday, June 19, 2025.

The foreign ministers of Belgium, Finland, Ireland, Luxembourg, Poland, Portugal, Slovenia, Spain, and Sweden urged immediate action.

They referenced the July 2024 advisory opinion issued by the International Court of Justice (ICJ), which deemed Israel’s occupation of Palestinian territories and its continued settlement expansion illegal under international law.

The ministers emphasized the EU’s responsibility to uphold legal and moral standards in its foreign policy and trade relationships.

“We have not seen a proposal to initiate discussions on how to effectively discontinue trade of goods and services with the illegal settlements,” the letter stated.

The EU currently stands as Israel’s largest trading partner, accounting for nearly a third of its total goods trade.

In 2024, two-way trade between the EU and Israel amounted to €42.6 billion ($48.91 billion).

However, the extent to which this trade involves goods and services originating from settlements remains unclear.

The ministers stressed that ongoing trade without scrutiny risks enabling the continuation of what they described as an “illegal situation.”

They called on the European Commission to introduce “concrete measures” to ensure that EU trade and investment practices align with the obligations highlighted by the ICJ.

“This is about ensuring that EU policies do not contribute, directly or indirectly, to the perpetuation of an illegal situation,” said Belgian Foreign Minister Maxime Prevot.

“Trade cannot be disconnected from our legal and moral responsibilities.”

The letter comes just days ahead of a scheduled meeting of EU foreign ministers in Brussels on June 23.

During the meeting, ministers are expected to receive an assessment report regarding Israel’s compliance with a human rights clause embedded in a political and economic cooperation agreement with the EU.

The bloc initiated this review in light of the ongoing conflict and humanitarian crisis in Gaza.

So far, Israel’s diplomatic mission to the EU has not issued a comment in response to the ministers’ letter.

However, political analysts predict the issue could further strain relations between the EU and Israel, particularly as concerns mount over the human rights impact of the Israeli government’s policies in both Gaza and the West Bank.

The call for trade restrictions with Israeli settlements is not entirely new, but the unified stance of nine EU foreign ministers adds substantial weight to the debate.

Should the European Commission proceed with drafting and enacting such trade measures, it could mark a significant shift in the EU’s engagement with the Israel-Palestine conflict and redefine its stance on international law enforcement through economic policy.

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