The European Union is moving forward with plans to restrict trade with illegal Israeli settlements in the occupied Palestinian territories, with member states' ambassadors tasked with drafting concrete proposals after the issue received broad backing during a meeting of EU foreign ministers.

The European Union is advancing plans to introduce new trade measures targeting illegal Israeli settlements in the occupied Palestinian territories.

EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said after the Foreign Affairs Council meeting in Brussels that member states' ambassadors had been instructed to prepare proposals aimed at restricting trade with the settlements.

Import ban and tariff options under discussion

Kallas said foreign ministers reviewed options prepared by the European Commission in June at the request of the Council of the European Union.

She said the proposals under consideration include a full or partial ban on imports from illegal Israeli settlements, stricter export licensing requirements, and additional customs duties.

Kallas stressed that the proposed measures are directed at the illegal settlements, which undermine the two-state solution, rather than at Israel itself.

She added that restricting trade with the settlements had received the broadest support among EU member states, although ambassadors would continue working on the proposals before any final decision is taken.

Settlement products treated separately

Under the EU-Israel Association Agreement, products meeting specific conditions qualify for preferential customs treatment.

However, goods produced in illegal Israeli settlements in the occupied West Bank, occupied East Jerusalem and the occupied Golan Heights are excluded from those trade preferences.

Although settlement products do not benefit from the preferential customs regime, their import into the European Union is not currently prohibited.

Concerns over origin declarations

EU officials say some exporters have circumvented existing rules by falsely declaring the origin of goods or mixing products made in illegal settlements with those produced inside Israel.

Meanwhile, a report by the Global Echo Litigation Center found that 17.2 percent of nearly 5,900 agricultural shipments exported from Israel to Europe between 2017 and 2026 originated from illegal Israeli settlements.

The issue remains under discussion among EU member states, with ambassadors expected to refine the proposals before they are submitted for further political consideration. (ILKHA)