EU seeks to abolish trade advantages for Israeli imports

If approved, the EU's action would signify a significant economic and political setback for Israel in both financial and diplomatic terms.

, and ASMedia

2025 September 19 . 6:10 PM

2 min read

Proposal by European Commission to abolish specialized trade advantages for Israel

EU seeks to abolish trade advantages for Israeli imports

The European Union (EU) is deliberating on imposing sanctions against Israel, marking a significant shift in the relationship between the two parties. This decision comes in response to the ongoing conflict in Gaza.

According to Gazan health authorities, at least 64,900 Palestinians have been killed by Israeli forces during almost two years of war. This grim statistic has prompted the EU to take action, aiming to pressure Israel to improve the humanitarian situation in Gaza.

Israel's invasion of Gaza was initiated in response to attacks by Hamas militants on southern Israel on October 7th, 2023. The EU Commission, led by Ursula von der Leyen, has proposed suspending the trade part of the EU association agreement with Israel as a response to this conflict.

Israel exported approximately €16 billion in goods to Europe last year, accounting for nearly a third of its global trade. If approved, the central plank of a decades-old free-trade deal between Europe and Israel would be suspended, reinstating tariffs on imports of goods. Key Israeli exports, including fruit such as dates and avocados, would be affected by these tariffs.

The sanctions proposed by the EU Commission also extend to individuals on both sides of the conflict. Commission officials have estimated that suspending the arrangement would result in annual import duties of €227 million being charged on Israeli exports.

However, the path to implementation is not straightforward. The sanctions require unanimous approval by all 27 EU states, but measures against two extremist Israeli ministers, Itamar Ben-Gvir and Bezalel Smotrich, are unlikely to be approved due to trenchant opposition from Hungary and others.

Suspension of the agreement requires the backing of a weighted majority of EU states, meaning Germany or Italy would first need to lift their opposition to the union sanctioning Israel. Several EU member states, including Germany, currently reject suspending Israel's privileged access to the European market and do not support sanctions beyond reducing bilateral aid.

The debate among EU diplomats is expected to focus on the positions of the governments in Berlin and Rome. Israel is also expected to lobby national capitals to block the proposed suspension of the trade deal.

The proposed sanctions are not intended to punish Israel but to exert pressure on the country to address the humanitarian crisis in Gaza. This was emphasised by Kaja Kallas, the EU's foreign affairs chief.

In a related development, a United Nations commission of inquiry this week concluded that Israel had committed genocide in Gaza, a charge Israel has rejected. Additionally, a global hunger monitor has said famine is taking place in parts of Gaza.

This potential sanctioning of Israel would represent the first serious action of its kind the EU has agreed to level on Israel since the start of its invasion of Gaza. It remains to be seen how this development will shape the future of the relationship between the EU and Israel.