Britain announced on Tuesday that it will ban the import of goods produced in Israeli settlements in the occupied West Bank, becoming the sixth European country in just over a year to impose national restrictions on settlement trade as pressure builds on Israel over continued settlement expansion.
Foreign Secretary Ed Miliband set out the measures to the House of Commons, describing them as part of a broader reset of Britain's relationship with Israel. The restrictions cover goods and some services originating in the settlements, including a prohibition on British companies financing, constructing or advertising new settlement construction, Miliband told MPs. Work and Pensions Secretary Pat McFadden said ahead of the announcement that the measures were not intended as a boycott of all Israeli goods, but were targeted specifically at settlement expansion, which is illegal under international law.
The ban follows growing alarm in London and other European capitals over Israel's E1 settlement project east of Jerusalem, which critics say would effectively cut the occupied West Bank in two and undermine the territorial continuity needed for a future Palestinian state. Reuters reported that the move is framed by the British government as a step up in support for a two-state solution, and that Washington is expected to strongly oppose the intervention.
Britain follows five other European states
Slovenia was the first European country to restrict settlement trade, banning imports of settlement goods in August 2025 alongside a separate arms embargo, though it has since reversed course following a change of government. Spain followed a month later, enshrining a settlement goods ban in law in September 2025 and becoming, according to the Times of Israel, the second European country to implement such a measure alongside a weapons trade ban.
Ireland's parliament passed its own prohibition on 15 July 2026, and the measure was signed into law eight days later as the Israeli Settlements in the Occupied Palestinian Territories (Prohibition of Importation of Goods) Act 2026. Belgium introduced its own import ban within days of the Irish vote, according to Al Jazeera. The Netherlands agreed to a ban in May 2026, publishing a royal decree on 21 July that takes effect on 21 September and extends to goods originating in the Golan Heights as well as the West Bank.
Brussels remains split
Al Jazeera reported that Ireland and Spain, backed by Belgium and the Netherlands, pushed for EU-wide restrictions on settlement goods at a recent meeting of foreign ministers, while Germany, Austria, Czechia and Hungary made clear they would oppose any bloc-wide sanctions on settlements, arguing the move would damage diplomatic relations with Israel. The European Commission has reportedly circulated a paper to member states outlining three options under consideration: a full import ban, a licensing scheme, or higher tariffs on settlement goods, though no decision has been reached. A group of former senior European officials, including former Italian prime minister Enrico Letta and former German vice chancellor Sigmar Gabriel, has separately called publicly for the EU to adopt a bloc-wide ban.
British public opinion favours the ban
The measure appears to have significant domestic backing. Polling conducted by Opinium for the European Council on Foreign Relations found that 46% of British adults support a ban on trade in goods from Israeli settlements, compared with 18% who oppose it.
Israel's response
Israel has reacted angrily to the British announcement. Foreign Minister Gideon Saar warned last week that Israel would respond in kind if Britain acted against it. Finance Minister Bezalel Smotrich called for the expulsion of Britain's ambassador to Israel, while National Security Minister Itamar Ben Gvir called separately for sanctions on Britain. Trade between Britain and Israel in goods and services was worth £6 billion in 2025, though the practical impact of the new measures is expected to be limited, since settlement-origin goods represent only a small fraction of that total.
Products made in Israeli settlements have not been eligible for preferential tariff treatment on entry to Britain since 2005, and the government has previously issued guidance discouraging British businesses from economic activity linked to the settlements. The new measures go further, making such investment unlawful for the first time.
Sources: Reuters, The Associated Press, Al Jazeera, the Guardian, Times of Israel, Jerusalem Post
