Australia resists Israel trade ban despite growing pressure

Britain, France, Canada and several other European countries have stepped up pressure on Israel over its illegal settlement expansion in the occupied West Bank. The moves come nearly a year after Australia and 10 other countries recognised a Palestinian state at the United Nations, when prospects for a two-state solution were already deteriorating amid Israel’s war in Gaza and rapid settlement expansion in the West Bank. Britain announced the strongest measures, with Foreign Secretary Ed Miliband telling parliament that the UK now considers Israel’s occupation of the West Bank unlawful, following a 2024 finding by the International Court of Justice. “For too long, we have been hesitant to act, fearful of being accused of being anti-Israel, ” British Prime Minister Andy Burnham said. Miliband also accused militant Israeli settlers of carrying out ethnic cleansing against Palestinians and said the Israeli government had failed to prevent, and in some cases supported, forced displacement. The shift marks a significant change in Britain’s position, which had previously distinguished between Israeli settlements and the broader military occupation of the West Bank. Israeli Prime Minister Benjamin Netanyahu has repeatedly rejected the prospect of Palestinian statehood, saying last year that his government would ensure there was “no Palestinian state”. Israel has expanded illegal settlements in the West Bank despite international criticism. It announced 34 new settlements in March and allocated billions of shekels for infrastructure and security links. In August, Israel also moved ahead with plans for more than 1, 200 homes in the E1 area east of Jerusalem. Critics say the project would divide the West Bank and sever it from Jerusalem, making a contiguous Palestinian state increasingly difficult to establish. The latest international measures target businesses and individuals involved in settlement construction, infrastructure, financing and real estate. Britain also plans to prohibit advertising for illegal settlements, while Britain, France, Canada and other European countries have announced or are considering restrictions on goods originating from settlements. However, implementing blanket trade bans could prove difficult because of the challenge of distinguishing between Palestinian and settlement-linked businesses operating in the West Bank. Australia has therefore declined, for now, to impose a blanket import ban. Foreign Minister Penny Wong said the rapid settlement expansion, proposed E1 development and settler violence were “extinguishing the possibility of a two-state solution”, but warned that broad sanctions could have unintended consequences for Palestinian, Israeli and Australian businesses. Australia is nevertheless considering further measures, particularly against companies and individuals involved in financing and supporting settlement expansion. The Netherlands, Ireland, Belgium, Spain and Norway have already imposed or are preparing restrictions on settlement goods, while Denmark, Finland, Iceland, Poland, Portugal and Sweden have also pledged further action. The coordinated moves reflect growing international concern that Israel’s settlement policies and the deteriorating economic and security conditions in the West Bank are making a future Palestinian state increasingly difficult to achieve.

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