UK, France, Canada sanction Israeli West Bank settlements, back two-state solution

Britain has announced a ban on trade in goods made in Israeli settlements in the occupied West Bank, joining France and Canada in a coordinated move to put pressure on Israel over settlement expansion and violence against Palestinians. The decision, announced by Foreign Secretary Ed Miliband in the House of Commons on Tuesday, comes as Britain and several other Western countries warn that Israel's settlement policies are threatening the possibility of a future Palestinian state.

Miliband said Britain could no longer simply "call out" injustice and suffering, but had to "act" against the expansion of settlements.

"Today we refuse to be bystanders to further suffering and to the destruction of the two-state solution," Miliband said.

The British government has also announced measures targeting companies and individuals linked to settlement expansion. The new trade restrictions are expected to take effect within six to nine months.

UK TAKES HARDER LINE ON ISRAEL

This is a significant shift in Britain's approach to Israel, with London increasingly critical of settlement expansion in the West Bank and Israel's conduct in Gaza.

Miliband said Britain's position was that Israel's occupation of the West Bank was unlawful and accused Israeli settlers of contributing to the "ethnic cleansing" of Palestinians in parts of the territory.

At the heart of Britain's concern is the E1 settlement project, east of Jerusalem. Israel has advanced plans for more than 1,200 housing units in the area, which Palestinians and many international governments fear could divide the West Bank and undermine the territorial contiguity needed for a viable Palestinian state.

Britain, like the United Nations and most governments, considers Israeli settlements in the occupied West Bank illegal under international law. Israel rejects that position and argues that the territory is disputed.

The trade measures are nevertheless expected to have a limited direct economic impact. Goods from settlements account for only a small share of Israel's overall trade with Britain, with agricultural products, including fresh produce and wine, among the main exports affected.

Britain's annual bilateral trade with Israel is worth around £6 billion, meaning the settlement-specific restrictions are unlikely to fundamentally alter overall commercial ties.

FRANCE AND CANADA JOIN THE MOVE

France announced a similar process on Tuesday, with Foreign Minister Jean-Noel Barrot saying Paris would move to end trade with Israeli settlements in the West Bank.

"France is going to put an end to its commerce with Israeli settlements in Palestine, along with 11 other countries which have also undertaken similar engagements," Barrot wrote on X.

Barrot said the decision was driven by growing violence and the rapid expansion of settlements.

"Why are we doing this? Because the West Bank is close to exploding - there is frenzied expansion of the settlements, a flare up of violence against Palestinians by extremist settlers, and acts of terror which have been attacked by Israeli authorities themselves," he added.

France said the specific details and timing of its restrictions had yet to be finalised. A French diplomatic source stressed that the move was aimed at settlement activity rather than a broader boycott of Israel.

The coordinated action follows growing frustration among European governments over the lack of agreement within the European Union on collective measures against Israel. Germany has been among the countries resisting stronger EU-wide action.

Britain said France and Canada were joining its initiative, while other European countries have either already restricted settlement goods or are preparing similar measures.

ISRAEL REACTS WITH FURY

Israel reacted angrily to Britain's decision, with Finance Minister Bezalel Smotrich calling for the British ambassador to Israel to be expelled. Security Minister Itamar Ben-Gvir has separately called on Prime Minister Benjamin Netanyahu to shut Britain's consulate in East Jerusalem, which maintains relations with the Palestinian Authority.

Israeli President Isaac Herzog accused Britain of interfering in Israel's domestic political affairs ahead of elections expected in late October.

The reaction reflects the increasingly strained relationship between London and Tel Aviv. Britain recognised a Palestinian state in 2025 as part of its effort to advance a two-state solution and imposed sanctions in June on Israeli networks accused of financing, enabling or carrying out violence against Palestinians in the West Bank.

US WARNS OF POSSIBLE BACKLASH

Washington has also criticised Britain's decision.

US Ambassador to Israel, Mike Huckabee, told the BBC that the sanctions amounted to "discrimination against the Jewish people". He also warned that the measures could create problems for British companies in US states where firms that boycott Israel can be excluded from government contracts, procurement programmes or public investment.

The British government has insisted that the restrictions are aimed at Israeli settlements rather than Israel as a whole.

The latest measures therefore stop short of a general boycott of Israeli products, but they send a clear message as Western governments become increasingly concerned that settlement expansion could make a negotiated two-state solution impossible.

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With inputs from agencies