Brussels: The European Commission announced a proposal to suspend free trade with Israel and impose sanctions on two Israeli ministers.
According to Palestine News and Information Agency - WAFA, the proposal was unveiled following President Ursula von der Leyen's State of the Union address to the EU Council, where she expressed deep concern over the ongoing situation in Gaza, highlighting actions by extremist Israeli ministers that incite violence and undermine a two-state solution.
The Commission's proposal suggests halting certain trade-related provisions of the Association Agreement between the EU and Israel, marking a significant shift in EU-Israel relations. Von der Leyen condemned what she described as Israel's attempts to disrupt peace efforts, emphasizing the deteriorating humanitarian situation in Gaza and the expansion of Israeli settlements in the West Bank as central issues.
Additionally, the European Commission announced a freeze on bilateral support to Israel, affecting future financial allocations and ongoing projects under regional cooperation initiatives. This decision followed a review indicating Israel's breach of the Agreement's Article 2, which pertains to human rights and democratic principles.
Von der Leyen called for an immediate ceasefire in Gaza, unrestricted humanitarian aid access, and the release of hostages held by Hamas. Stressing the EU's commitment as a leading humanitarian donor and advocate for a two-state solution, she urged for the suspension of trade concessions, sanctions on extremist ministers and settlers, and a halt on bilateral support.
The proposed suspension would end Israel's preferential access to the EU market, subjecting Israeli imports to standard duties applicable to non-partner countries. Approval from a qualified majority of EU member states is required to enact the suspension, reflecting the EU's significant role as Israel's largest trading partner, accounting for 32% of Israel's global trade. Total trade between the EU and Israel in 2024 was valued at £42.6 billion, with the EU exporting £26.7 billion to Israel.
