Bibi Netanyahu, July 4th, US Embassy Jerusalem
Prime Minister of Israel Benjamin “Bibi” Netanyahu attending the US Embassy Jerusalem's 4th of July celebration at the Israel Museum in Jerusalem on July 3, 2023. Photo credit: US Embassy Jerusalem / Wikimedia (CC BY 4.0)

The European Commission on Wednesday proposed trade restrictions against Israel and sanctions against two of its ministers as well as some violent settlers.

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While Europe is far from united over how to address Israel’s conduct in Gaza, a package of sanctions that the EU Commission proposed on Wednesday is the latest sign that Tel Aviv is now facing pushback that goes far beyond mere lip service to protecting human rights.

“We all agree that the situation in Gaza continues to head in the wrong direction,” said Kaja Kallas, the EU’s top diplomat. “We must leverage the tools at our disposal to pressure the Israeli government into changing course.”

One of those tools is voiding the preferential access to the European market that goods from Israel currently enjoy under an agreement with the EU. That would mean that Israel’s exports would become subject to the same tariffs that apply to goods imported from any other country with which the EU does not have a free trade agreement.

The Commission justifies this step by asserting that Tel Aviv has violated the terms of the agreement, specifically the clause stating that the deal is “based on respect for human rights and democratic principles.”

Specifically, it pointed to the “rapidly deteriorating humanitarian situation in Gaza following the military intervention of Israel, the blockade of humanitarian aid, the intensifying of military operations and the decision of the Israeli authorities to advance the settlement plan in the so-called E1 area of the West Bank, which further undermines the two-state solution” as reasons for this step.

The proposed sanctions go beyond measures that, in effect, impose tariffs on Israel.

The Commission is also targeting two “extremist ministers,” specifically National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich, as well as “violent settlers.”

Predictably, Israel criticized the proposed sanctions and said it would retaliate.

“The recommendations of the college of Commissioners led by President von der Leyen are morally and politically distorted, and it is to be hoped that they will not be adopted as has been the case so far,” said Foreign Minister Gideon Sa’ar. “Moves against Israel will harm Europe’s own interests. Israel will continue to struggle, with the help of its friends in Europe, against attempts to harm it while it is in the midst of an existential war. Steps against Israel will be answered accordingly, and we hope we will not be required to take them.”

In announcing the proposed sanctions, Commission President Ursula von der Leyen also made it clear that the EU is committed to ending the suffering in Gaza and finding a way to bring peace to the region (although not in a way that Israel wants).

“The European Union remains the biggest donor of humanitarian aid and an unwavering champion of the two-state solution,” von der Leyen stated, nothing that putting the bilateral support to Tel Aviv on hold would not affect “our work with Israeli civil society or [the World Holocaust Remembrance Center] Yad Vashem.”

While the EU is Israel’s main trading partner, it remains to be seen how much these sanctions, if approved, would hurt its economy.

As of now, they are perhaps more significant as a symbol that long-time allies are willing to exert pressure on Tel Aviv to end a war that many view as inhumane.

Ireland, which last year became the first EU country (along with Spain) to recognize a Palestinian state, was quick to say it would back the Commission’s proposal.

“There must be an immediate ceasefire, the release of all hostages and a massive surge of humanitarian aid into Gaza,” said Taoiseach Micheál Martin. “The slaughter of children must stop. The slaughter of innocent civilians queuing for food must stop. What is going on is beyond any moral compass.”

Martin added that he is calling on other EU countries to back these sanctions when they are brought to a vote.

  • Klaus Marre is a senior editor for Politics and director of the Mentor Apprentice Program at WhoWhatWhy. Follow him on Bluesky @unravelingpolitics.bsky.social.

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