UK, France and 10 other countries to restrict trade with Israeli settlements

Twelve countries, including Britain, Canada and France, announced Tuesday plans to restrict trade with Israeli settlements in the occupied West Bank, citing increasing settler attacks against Palestinians and settlement expansion.

Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and Canada joined Britain and France in announcing the measures. Ireland and Spain have already taken steps against trade with Israeli settlements, while France has pushed the European Union to adopt similar restrictions.

In a joint statement, the countries said actions by the Israeli government in the West Bank were “undermining the possibility of a two-state solution”. They warned that the situation was “rapidly deteriorating amid unprecedented levels of settler violence and settlement expansion”.

British Foreign Secretary Ed Miliband told Parliament that Britain would introduce an “import ban on goods from illegal settlements in the occupied territories”. He also announced action against specific companies and individuals providing construction, infrastructure, financing or real estate services linked to settlement expansion.

French Foreign Minister Jean-Noel Barrot said France “will end trade” with settlements in the occupied territories.

US Ambassador to Israel Mike Huckabee criticised Britain’s decision, saying it amounted to discrimination against the Israeli government and Jewish people.

Israeli Finance Minister Bezalel Smotrich called for the expulsion of Britain’s ambassador to Israel. Prime Minister Benjamin Netanyahu has vowed to continue establishing settlements in the West Bank despite international pressure.

The measures come as the E1 settlement plan, approved by Israel last year after decades of being frozen, advances plans for 1,200 housing units in the West Bank. Critics say the project would further isolate Israeli-annexed east Jerusalem from the rest of the occupied territory.

More than 500,000 Israelis live in settlements in the West Bank, alongside around three million Palestinians. According to an AFP tally based on Palestinian health ministry data, Israeli forces or settlers have killed at least 1,105 Palestinians in the territory since the Gaza war began.

UK-Palestinian trade was worth around £38 million ($51 million) in 2025, according to the British government, suggesting the measure could have a largely symbolic impact. Critics have also questioned how goods from West Bank settlements could be distinguished from those produced elsewhere in Israel.