The EU Commission proposes a restriction of trade with Israel because of the war in Gaza

The European Commission has revealed plans to restrict trade with Israel and impose sanctions on extremist ministers in its government, which – if accepted – will be the most difficult response to the EU war in Gaza.

The plans tracked by the chairman of the Commission Ursula von der Leyen last week will terminate the provisions related to the trade of the EU and Israel Association Agreement.

This would undress Israeli goods with privileged access to the European markets, with tariffs imposed on billions of euros exports – more special agricultural products such as dates and citrus fruits.

But despite the strong language, the measures seem unlikely to pass and are rejected by Israel as “moral and politically distorted.”

Commercial restrictions require approval by a qualified majority of Member States, while sanctions against humans require unanimity.

Due to the objection of key members, including Germany and Italy, and Ireland and Spain, calling for far more stringent actions, adoption seems unlikely.

EU foreign policy chief Kaya Callas has acknowledged the challenge in the European Council, telling reporters: “Political lines are very at the place where they have been so far.”

She said the package was also aimed at “Hamas terrorists”, unnamed “extremist ministers” in the Israeli government, and “violent settlers and organizations supporting impunity, is happening on the West coast.”

The EU is the number one trading partner of Israel, which represents 32% of its trade in goods in 2024, worth EUR 42.6 billion (£ 35.8 billion). However, the economic impact of ending tariff preferences would be limited. Trade Commissioner Maros Chief Chiefs estimated the effect of only € 227 million a year.

The only measure that takes an immediate effect is to stop the bilateral support of the Israeli government. But this is also largely symbolic of only € 9.4 million of EUR 14 million, allocated in 2020-24 – and does not require approval from Member States.

The Mediterranean Commissioner Dubravka šuica stressed that the financing of programs, dealing with anti -Semitism and support of civil society will not be affected.

Israeli Foreign Minister Gideon Saar rejected the committee’s proposals as “moral and politically distorted”, warning of X that the actions against Israel would harm Europe’s own interests and promise that any steps taken against his country would be answered “in nature.”

It is not clear immediately when the measures will be voted on by the members.