EU Moves Toward Trade Restrictions on Israel Amid Gaza Conflict

Mon Oct 20 2025 03:17:19 GMT+0300 (Eastern European Summer Time)

In a decisive step, the European Commission proposes significant trade curbs and sanctions against Israel in response to ongoing tensions in Gaza, facing challenges in achieving consensus among member states.

The European Commission has announced plans to impose trade restrictions and sanctions on extremist Israeli ministers, marking one of the EU's most robust responses to the Gaza war. If approved, the measures would suspend trade privileges under the EU–Israel Association Agreement, targeting key agricultural exports. However, skepticism remains about their adoption due to opposition from member states like Germany and Italy, with Israel's government condemning the proposals as distorted. Discussions on this issue continue, highlighting the complexities of EU foreign policy amid a volatile geopolitical landscape.

The European Commission has unveiled plans to restrict trade with Israel and impose sanctions on extremist ministers in its government, which - if adopted - would be the EU's toughest response to the war in Gaza.

The proposals, trailed by Commission President Ursula von der Leyen last week, aim to suspend trade-related provisions of the EU–Israel Association Agreement.

This move would strip Israeli goods of privileged access to European markets, instituting tariffs on billions of euros worth of exports, particularly affecting agricultural products like dates and citrus fruits.

Despite the strong language surrounding the measures, they are seen as unlikely to pass in their current form and have been met with condemnation from Israeli officials, who describe them as morally and politically distorted.

Trade restrictions require approval by a qualified majority of EU member states, while sanctions against individuals necessitate unanimity. Key member states, including Germany and Italy, have expressed opposition, while Ireland and Spain are pushing for more decisive action, complicating the adoption process.

EU foreign policy chief Kaja Kallas recognizes these challenges, stating that the political climate remains unchanged from previous discussions.

The proposed package includes targeting Hamas terrorists, unnamed extremist ministers within the Israeli government, and entities that support settler violence in the West Bank.

The EU is Israel's primary trading partner, constituting 32% of its goods trade in 2024, valued at €42.6 billion. However, the economic impact of ending tariff preferences is projected to be limited, estimated at just €227 million annually.

The only measure that could take immediate effect is the suspension of bilateral support to the Israeli government, affecting a mere €9.4 million out of €14 million allocated for 2020-2024, and this move does not require member state approval.

While the Mediterranean Commissioner, Dubravka Šuica, emphasizes that ongoing funding for projects addressing antisemitism and civil society support will not face cuts, concerns persist regarding the broader implications of such actions.

Israeli Foreign Minister Gideon Saar has vehemently rejected the Commission's proposals, asserting that measures against Israel would undermine European interests and promising retaliatory actions from Israel.

It remains uncertain when the EU member states will convene to vote on these proposed measures.