EU Unveils Broad Trade Measures Against Israel Amid Gaza Conflict

Wed Sep 17 2025 22:16:41 GMT+0300 (Eastern European Summer Time)

In a significant diplomatic move, the European Commission proposes stringent trade restrictions with Israel as part of its response to the ongoing Gaza conflict. However, the likelihood of these measures passing faces considerable political hurdles.

The European Commission has announced plans to impose trade restrictions on Israel and sanction extremist ministers in response to the Gaza war. This includes suspending certain trade privileges under the EU-Israel Association Agreement, which could lead to increased tariffs, particularly on agricultural exports. However, the success of these proposals faces challenges due to opposition from key member states. Israeli officials have criticized the proposals as morally flawed, raising the stakes in this complex 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 plans, trailed by Commission President Ursula von der Leyen last week, would suspend trade-related provisions of the EU–Israel Association Agreement.

This would strip Israeli goods of privileged access to European markets, with tariffs imposed on billions of euros of exports - particularly agricultural produce like dates and citrus fruit.

But despite the forceful language, the measures appear unlikely to pass and have been dismissed by Israel as morally and politically distorted.

Trade restrictions require approval by a qualified majority of member states, while sanctions on individuals demand unanimity.

Because of the objection of key members, including Germany and Italy, and Ireland and Spain calling for far tougher action, adoption looks unlikely.

EU foreign policy chief Kaja Kallas acknowledged the challenge in the European Council, telling reporters: Political lines are very much in the place where they have been so far.

She said the package also targeted Hamas terrorists, unnamed extremist ministers in the Israeli government and violent settlers and entities supporting the impunity going on in the West Bank.

The EU is Israel's number one trading partner, accounting for 32% of its trade in goods in 2024, worth €42.6bn (£35.8bn). Yet the economic impact of ending tariff preferences would be limited. Trade commissioner Maroš Šefčovič estimated the effect at just €227m a year.

The only measure that takes immediate effect is the suspension of bilateral support to the Israeli government. But this too is largely symbolic with a mere €9.4m out of €14m allocated for 2020–24 – and does not require approval from member states.

Mediterranean Commissioner Dubravka Šuica stressed that funding for programmes tackling antisemitism and supporting civil society would not be affected.

Israeli Foreign Minister Gideon Saar dismissed the Commission's proposals as morally and politically distorted, warning on X that actions against Israel would damage Europe's own interests and vowing that any steps taken against his country would be answered in kind.

It's not immediately clear when the measures will be voted on by members.