Report: UK to Impose Sanctions on Settlements That Could Harm Trade with Israel

The British government, under its new Prime Minister Andy Burnham, is preparing a comprehensive package of sanctions on trade with settlements, a move that critics within the Labour Party say could lead to a "de facto boycott" of Israeli goods in general; this was reported today (Tuesday) in the main headline of the British "Times".

In the past week, the UK has joined the sharp condemnations from European countries regarding the comprehensive approval for the expansion of settlements by the Israeli government. Foreign Secretary Ed Miliband warned that the implementation of the plan would effectively "cut the West Bank in two and prevent the two-state solution". According to the report, Burnham is expected to announce "real sanctions" on trade with Israeli settlements, meaning an attempt to ban the import of products from them to the UK.

A similar step was taken by Spain and Ireland, and is being considered in other European countries. This month, the Netherlands adopted an especially strict law that not only bans the import of goods from Israeli settlements but also prohibits buying or selling them, making it an offense punishable by up to six years in prison. The Dutch law will come into effect on September 22, and in the meantime, Israel has removed the Netherlands from the multinational force intended to monitor the ceasefire in Gaza in response to the law.

Personal sanctions against senior figures in the settlement enterprise

Now, according to the report, Burnham intends to move forward with trade sanctions "despite the fact that officials in the party warned that they could turn into a de facto boycott of Israeli goods". Burnham wants to take a "tougher" approach towards the settlements, a government source told the British "Times". In addition to the trade ban with settlements, Burnham is expected to also approve personal sanctions against senior figures in the settlement enterprise.

Inside and outside the party, Burnham was warned that the wording of the sanctions would have too broad an implication, because "it will be difficult to distinguish between Israeli goods and goods originating from settlements". "There is a real chance that "legitimate" Israeli businesses will be harmed as a result of the move", it was written. Israel exports goods worth about 2 billion dollars a year to the UK. In addition, there is active trade in services, but according to estimates, the sanctions will not apply to this sector.

The issue of measures against Israel as part of the pressure on it to advance the two-state solution is dividing the Labour Party, which is currently in power. 140 serving members of parliament (about a third of its strength) sent a letter in which they demanded harsh measures against settlements from the new Prime Minister. The party lost seats to pro-Palestinian left-wing elements due to what was called the "friendly approach" of the previous Prime Minister Starmer towards Israel. A discussion on the matter was expected to take place at the upcoming party conference in September, but according to reports, Burnham wants to announce the sanctions to take the discussion off the agenda.

The Friends of Israel group in the party told the newspaper that while it supports targeted measures against settlements, "a trade boycott on settlements is almost impossible, and will turn into a de facto boycott on all of Israel. This development would be destructive to the British national interest, to British Jews, and to Palestinian workers". In addition, the group warned that "against the backdrop of the upcoming elections in Israel on October 27, there is a real risk that non-targeted sanctions will only strengthen the siege mentality of the Israeli right and thus politically harm the Israeli opposition, which is leading in the polls".