The United Kingdom, in alliance with Australia, France, and Norway, has announced sanctions against six firms and one individual involved in enabling and financing the recent surge in settler violence in the occupied West Bank. The move comes amid growing international concern over illegal settlement expansion and attacks on Palestinian communities.
Government Stops Short of Trade Ban
Foreign Secretary Yvette Cooper faced disappointment from Labour backbenchers after declining to impose a full trade ban with illegal settlements. Instead, the government issued updated advisory guidance urging British businesses to avoid economic activities linked to settlements deemed illegal under international law. Cooper acknowledged the difficulty in constructing an enforceable trade ban but pledged to continue examining the issue with international partners.
More than 130 Labour MPs, including all select committee chairs, had called for a complete trade prohibition, citing the need to comply with International Court of Justice orders from 2024. Emily Thornberry, chair of the foreign affairs select committee, criticized the government's approach, stating that British firms are effectively bankrolling annexations one settlement at a time, and warned of doing too little too late.
Updated Advisory Guidance
The new guidance explicitly advises UK businesses against economic and financial activities in illegal settlements established in territories occupied by Israel since 1967. However, it does not constitute a legal ban or impose penalties for noncompliance. The government also refrained from hardening existing rules on labeling products from illegal settlements, which have been ineligible for preferential tariff treatment in the UK since 2005.
The advisory states: "Businesses should not engage in economic and financial activities in Israeli settlements." It warns that such activities may result in reputational damage and disputed titles to land, water, minerals, or other natural resources. Despite this, the UK continues to encourage trade with Israel within its pre-1967 borders, highlighting Israel's strong economic performance and attractive market.
Escalating Settler Violence
Settler violence has proliferated in recent months, with Israel inviting bids for the E1 development project, which would construct approximately 3,500 homes and effectively sever the West Bank in two. Britain has already imposed sanctions on two Israeli extremist ministers, Bezalel Smotrich and Itamar Ben-Gvir, a step not yet taken by the European Union due to internal divisions.
Cooper emphasized that settler expansion and violence are illegal and pose a fundamental threat to a two-state solution and long-term peace. She noted that the measures target those fueling violence amid record levels of settlement expansion and deliberate destruction of Palestinian homes and livelihoods.
Call for Humanitarian Access
In her statement to MPs, Cooper urged the Israeli government to open all crossings and remove arbitrary restrictions on humanitarian aid delivery to Gaza. All crossings into Gaza have been closed recently after Israel claimed no nutritional shortfall exists there. The UK joined Australia, Canada, France, and Norway in a joint statement condemning settler violence and urging Israel to ensure accountability.
The statement read: "For too long, violent settlers have been able to act with near impunity, and settlement expansion continues with the support of the Israeli government. We stand ready to take more action if Israel does not address the situation."
Sanctioned Entities and Reactions
The sanctioned entities, including the Farms Association, Ahavat Gilad, Ari Yshag, Artzenu, and Eyal Hari Yahuda, primarily fundraise for settlers. The practical impact of UK sanctions depends on whether these entities hold funds in the UK or trade with British firms. Human Rights Watch described the package as the bare minimum, while Christian Aid criticized the advisory approach as pathetic, calling for a full trade ban before Palestine is erased entirely.
