The European Commission Wednesday proposed suspending parts of its trade agreement with Israel over the Gaza war, drawing a sharp warning from Israeli foreign minister Gideon Saar, who said: “Moves against Israel will harm Europe’s own interests … any action against Israel will receive an appropriate response.”
The proposal, presented after months of pressure from Ireland and Spain, would strip Israeli exports of preferential EU market access, with goods facing duties like any third country without a trade deal. EU trade commissioner Maroš Šefčovič said: “We regret having to take this step. However, we believe it is both appropriate and proportionate given the ongoing humanitarian crisis in Gaza.”
The Commission said the move followed a review of Article 2 of the EU-Israel association agreement in light of “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.”
Šefčovič noted EU-Israel trade reached €42.6bn in 2024, calling the suspension “a carefully considered response to an increasingly urgent situation.” He added the EU wanted “unrestrained access for humanitarian aid, the immediate release of all hostages held by Hamas and an urgent ceasefire.”
The proposals, which also include sanctions on Hamas, extremist ministers and violent settlers, still need approval from member states, where divisions remain.
“Although we see that the public opinion in member states is really shifting because of the suffering in Gaza … on a political level … I think the political lines are very much in the place where they have been so far,” EU foreign policy chief, Kaja Kallas, said.
European Commission President Ursula von der Leyen insisted public opinion has shifted, saying: “The proposals [are] now on the table to put more pressure on [the] Israeli government … what it shows, really, it shows that the public opinion in all the member states has really shifted.”
Israel, however, rejected the move outright. Saar wrote on X that the Commission’s recommendations were “morally and politically distorted,” warning that if the EU acts, Israel “will not have to use” but is prepared with a response.
The EU is Israel’s biggest trading partner, making up 32% of its global trade in goods. Their association agreement, in force since 2000, underpins a €68bn (£59bn) relationship spanning trade, research, energy and environmental cooperation. If tariffs are reinstated, around €5.8bn worth of Israeli exports would be hit, costing exporters an estimated €227m in duties.