The European Union is preparing to impose trade restrictions on Israel by suspending parts of its partnership agreement, in response to the ongoing aggression in Gaza and settlement practices in the West Bank.

EU foreign policy chief Kaja Kallas confirmed in an interview with Euronews that the European Commission will propose suspending the trade provisions of the EU–Israel Association Agreement — a landmark step that would strip Israel of key economic privileges.

According to Kallas, the plan includes removing the preferential tariffs currently applied to a wide range of Israeli products entering the European market. Euronews reported that roughly 37% of Israeli exports to the EU benefit from such preferential treatment under the agreement, which has long been criticized by human rights groups for enabling Israel’s occupation economy.

If adopted, the proposal would represent the most consequential economic measure taken by the European Union against Israel in years. Palestinian civil society has for decades called on the EU to halt trade privileges that effectively reward Israel despite its ongoing violations of international law, including settlement expansion, the blockade on Gaza, and what UN experts have described as apartheid policies.

“This is an overdue step in the right direction,” said Leila Shaheed, a former Palestinian diplomat to the EU. “Europe has a moral and legal obligation not to be complicit in Israel’s crimes. Ending preferential treatment is the minimum response to 700+ days of genocide in Gaza and decades of occupation.”

The European Commission is expected to formally present the proposal in the coming days. Adoption will require a qualified majority vote among EU member states. Diplomats say the outcome will depend heavily on whether major states like Germany and Italy — traditionally among Israel’s strongest supporters in Europe — agree to the plan or attempt to water it down.

Human rights advocates have urged EU governments to act decisively. “Europe cannot continue business as usual while Israel bombs civilians in Gaza and grabs more Palestinian land in the West Bank,” said Omar Barghouti, co-founder of the Boycott, Divestment, Sanctions (BDS) movement. “Suspending this agreement would be a historic step toward aligning EU policy with its stated human rights principles.”

The move follows comments last week by European Commission President Ursula von der Leyen, who announced a broader package of measures related to trade and political relations with Israel. The suspension of the Association Agreement’s trade provisions would be the centerpiece of this package, sending a strong message that Europe is no longer willing to grant Israel economic benefits while it continues its war crimes with impunity.

Palestinians and their supporters across Europe are expected to welcome the proposal, though many warn that only full suspension of the agreement — and sanctions on Israeli officials and entities — will have the necessary impact to pressure Israel to halt its assault on Gaza and comply with international law.

For now, the world’s attention turns to Brussels, where the EU’s decision could set a precedent for other global powers to use economic leverage to hold Israel accountable. (ILKHA)