The European Commission has put forward a significant proposal to partially suspend the EU-Israel trade agreement, which would introduce tariffs on approximately 37% of Israeli exports to the bloc. This move comes in response to the ongoing Israeli offensive in Gaza, which has resulted in a substantial loss of life. The proposal also includes sanctions against two Israeli ministers, Bezalel Smotrich and Itamar Ben-Gvir, for inciting violence, along with sanctions for violent settlers and ten Hamas members. For these measures to take effect, they require the endorsement of EU member states.
High Representative of the Union for Foreign Affairs and Security Policy, Kaja Kallas, stated that these proposed sanctions are a direct response to the escalating violence in Gaza. Commission President Ursula von der Leyen had previously urged Europe to take action to pressure the Netanyahu government to cease its operations in Gaza. The proposed tariffs would primarily impact agri-food products, such as fruits and vegetables. The Commission estimates that these measures could lead to an additional €227 million in tariffs on Israeli exports to the EU annually.
A critical obstacle to the implementation of these proposals is securing the necessary support from member states. The suspension of the trade agreement requires a qualified majority, while sanctions against individuals necessitate unanimity. This has historically been a challenge, as seen with sanctions against Russia. Several countries, including Germany, Austria, Hungary, and the Czech Republic, have reportedly expressed reservations or opposition to these measures. Germany, in particular, has indicated it has not yet formed a final opinion on the proposals.
The Commission emphasizes that the proposed sanctions are specifically designed to exert maximum pressure on the Israeli government. The individual sanctions target ministers Smotrich, known for his support of settlements in the West Bank, and Ben-Gvir, recognized for his Israeli supremacist and anti-Arab ideology. If approved, the sanctions would involve freezing the assets of these Israeli politicians within Europe and prohibiting their entry into the EU. Similar measures are proposed for violent settlers and the ten Hamas members on the list.
Furthermore, the Commission proposes suspending institutional cooperation with Israel, impacting areas such as energy and data management, and halting European projects within Israel, representing a loss of approximately €14 million in investments. However, EU funding for initiatives combating antisemitism and promoting peace between Israeli and Palestinian societies will continue. The EU's trade relationship with Israel is governed by an Association Agreement established in 1995, forming a Free Trade Area. In 2024, total trade in goods between the EU and Israel reached €42.6 billion, with EU imports from Israel valued at €15.9 billion. The EU's decision to propose these measures stems from a review that indicated Israel's breach of Article 2 of the Association Agreement, which mandates respect for human rights and democratic principles. This alleged breach is linked to the humanitarian crisis in Gaza and the expansion of Israeli settlements in the West Bank.