Germany blocks EU move to ban trade with illegal ‘Israeli’ settlements

EU foreign ministers met in Brussels on Monday to discuss options for restricting trade with ‘Israeli’ settlements in the occupied West Bank, which are regarded as illegal under international law.

Despite growing pressure from several member states amid reports of escalating settler violence, no agreement was reached, with Germany playing a key role in blocking progress toward a potential ban.

German Foreign Minister Johann Wadephul renewed Berlin’s opposition ahead of the meeting, arguing that trade restrictions would harm relations with ‘Israel’ without yielding results. “We have a clear position on settlement policy: it is inconsistent with international law,” Wadephul said.

He claimed that the issue should be addressed through direct dialogue with the ‘Israeli’ government rather than sanctions.

Wadephul added that he had conveyed Germany’s expectations during a recent visit to ‘Israel’, urging tough action against violent settlers.

The European Commission presented options including a full import ban on settlement products, prohibitive tariffs, or an import licensing system.

EU foreign policy chief Kaja Kallas highlighted the urgency: “Everybody agrees that the situation in the West Bank is really intolerable… What is happening in the West Bank is actually making it more and more impossible that the two-state solution ever can come into effect.”

Kallas noted significant member state interest: “There have been a lot of asks and requests from the member states regarding the ban of the trade with illegal settlements. Let’s see if these options that have been provided now will have a stronger push from member states.”

A full ban reportedly garnered the most support among ministers, but divisions prevented a qualified majority or consensus.

Advocates, including Spain, Ireland, and Belgium, have pushed for strong measures citing the International Court of Justice’s 2024 advisory opinion, which deemed the settlements illegal and called on states to avoid trade or investment that sustains them.

Some countries like Ireland, the Netherlands, and Spain have already implemented their own restrictions.

The annual trade in settlement goods is estimated at around €300 million.