The European Union Committee proposes restrictions on trade with Israel on the Gaza war

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

These plans, which are left behind by the Chairman of the Committee, Ursula von der Lynn last week, will suspend the provisions related to trade to the Convention on the European Union and Israel Convention.

This would strip the Israeli goods from outstanding access to European markets, while imposing definitions on billions of euros of exports – especially agricultural products such as dates and citrus fruits.

But despite the strong language, it seems that the measures are unlikely that Israel will go through as “moral and political distorted.”

Commercial restrictions are required by the vast majority of member states, while sanctions against individuals require consensus.

Because the main members, including Germany, Italy, Ireland, and Spain objection, calls for tougher action, adoption appears unlikely.

The head of the European Union’s foreign policy Kaja Callas admitted a challenge in the European Council, and told reporters: “The political lines are where they were until now.”

She said that the package also targeted “Hamas terrorists”, whose name was not revealed “extremist ministers” in the Israeli government and “settlers and violent entities that support impunity in the West Bank.”

The European Union is the first trade partner of Israel, which represents 32 % of its merchandise trade in 2024, at a value of 42.6 billion euros (35.8 billion pounds). However, the economic impact of ending limited tariff preferences will be limited. Commerce Commissioner MAROš šefčovič estimated the impact of only 227 million euros per year.

The only scale that takes an immediate effect is to suspend bilateral support for the Israeli government. But this is also largely symbolic with only 9.4 million euros from 14 million euros dedicated in 2020-24 – and does not require approval from member states.

The Mediterranean Commissioner, Dobrevka šica, stressed that financing programs that address anti -Semitism and civil society support will not be affected.

Israeli Foreign Minister Gideon, Sair, rejected the committee’s proposals as “morally and politically distorted”, warning that X that measures against Israel will harm Europe’s private interests and pledged to respond to any steps against his country.

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