LONDON: Britain on Tuesday announced a trade ban on goods produced in Israeli settlements in the occupied West Bank, coordinating the move with France and Canada as international pressure on Israel continues to grow.
British Foreign Minister Ed Miliband said the UK could no longer simply “call out” injustice and suffering, telling the House of Commons that Britain must now take action against the expansion of Israeli settlements.
“Today we refuse to be bystanders to further suffering and to the destruction of the two-state solution,” Miliband said, reaffirming Britain’s support for the establishment of an independent Palestinian state alongside Israel.
The new sanctions come as Israel faces growing diplomatic pressure over its settlement policy in the occupied West Bank and its conduct in Gaza.
The United States has criticized Britain’s latest measures through its ambassador to Israel, while senior Israeli ministers have called for retaliatory action against Britain.
Miliband also said Britain considers Israel’s occupation of the West Bank unlawful and believes Palestinians are facing ethnic cleansing in parts of the territory.
The impact of the measures on annual UK-Israel trade, estimated at around £6 billion ($8.12 billion), is expected to be limited. However, questions remain over how British authorities will distinguish goods produced in Israeli settlements in the West Bank from products manufactured elsewhere in Israel.
Israeli Finance Minister Bezalel Smotrich strongly condemned the British decision and called for the expulsion of the British ambassador from Israel.
National Security Minister Itamar Ben-Gvir urged Prime Minister Benjamin Netanyahu to close the British Consulate in East Jerusalem, which maintains relations with the Palestinian Authority in the West Bank.
Israeli President Isaac Herzog also accused Britain of interfering in Israel’s upcoming elections, which are scheduled for late October.
The latest dispute comes amid growing international concern over Israel’s E1 settlement project near Jerusalem. Miliband said the project could divide Palestinian territory and threaten the possibility of establishing a contiguous Palestinian state, potentially undermining the long-standing goal of a two-state solution.
On Tuesday, Smotrich also announced progress on plans to build 1,000 new homes in two other Israeli settlements in the West Bank.
The United Nations, Palestinians and most countries consider Israeli settlements in the occupied West Bank illegal under international law, while Israel disputes that position.
Britain recognised a Palestinian state in 2025 alongside other countries as part of efforts to advance a two-state solution. In June, London also imposed sanctions on Israeli networks accused of financing, enabling and carrying out violence against Palestinians in the occupied West Bank.
Relations between Britain and Israel have become increasingly strained, with London repeatedly criticising Israel's policies in Gaza, the expansion of settlements and rising settler violence against Palestinians.
Miliband said Britain, France and Canada were joining the Netherlands, Ireland, Belgium, Spain and Norway in banning or planning restrictions on goods originating from Israeli settlements in the West Bank.
US Ambassador to Israel Mike Huckabee criticized the British measures in comments to the BBC, describing the sanctions as “discrimination against the Jewish people.” He also warned that the move could potentially affect British companies seeking to conduct business in some US states that restrict government contracts, procurement or public investment involving companies that boycott Israel.
