EU Discusses Trade Options on Israeli Settlements but Lacks Consensus on Restrictions

The European Commission circulated an options paper on Wednesday that sets out a full or partial trade ban on Israeli settlements along with other measures such as export licences and higher tariffs. The paper will be discussed at the Foreign Affairs Council meeting of EU foreign ministers on Monday.

The options include requiring export licences for goods from the settlements and imposing tariffs high enough to make the products prohibitively expensive.

Twenty member states had requested the Commission to outline available trade restrictions at a ministerial meeting last month, and the European Council summit later reinforced that request. An EU diplomat told Euronews there is no consensus on trade restrictions but that member states are pleased the file is advancing.

France and Sweden have openly supported restricting trade with the settlements, while Germany and the Czech Republic have expressed caution over possible effects on relations with Israel.

A second diplomatic source said Italy could influence the outcome toward restrictive measures. Italy's Permanent Representation to the EU declined to comment, stating that Rome is still reviewing the document. The legal basis for any measures remains unresolved.

The Commission's Deputy Chief Spokesperson Olof Gill declined to confirm whether the paper signals a shift from the Commission's prior view that foreign policy rules requiring unanimity should apply. The Council's legal service has indicated in an oral opinion that a commercial policy basis requiring only a qualified majority could be viable depending on the details.