Financial Times Calls for EU Trade Deal Suspension with Israel

The Financial Times, in a recent editorial, has urged European nations to suspend the Association Agreement between the European Union and Israel. This agreement forms the basis of relations between the bloc and Israel, encompassing trade, political ties, and academic and cultural cooperation.

The editorial aligns with persistent calls from countries like Ireland, Spain, and Belgium over the past two years to suspend the agreement, citing concerns that Israel is not adhering to its international law obligations within the pact. The newspaper argues that the Israeli government's settlement construction plans "threaten to end the possibility of a viable Palestinian state." It also highlights daily settler violence against Palestinians, describing European efforts to curb it as "weak."

While acknowledging Israel's legitimate security concerns, the Financial Times contends that its actions on the ground amount to land appropriation driven by ideology. The editorial specifically calls for comprehensive sanctions against settlements, referencing the Netherlands' recent imposition of strict sanctions that could impact overall trade with Israel, set to take effect on September 22. It also notes that UK Prime Minister Andy Burnham is expected to announce similar sanctions soon.

The Financial Times urges the EU to "take a common stance and ban exports from settlements, which they deem illegal." It also suggests that Israeli entities involved in settlement construction or funding should face sanctions. The editorial concludes by calling for EU member states to unite in suspending the bloc's Association Agreement with Israel.

This initiative has been a recurring topic in high-level EU forums for the past two years but has been obstructed by pro-Israel member states, including Germany and Italy. A plan for sanctions on settlements was also discussed without resolution at the last meeting of EU foreign ministers. However, pressure is mounting, and EU foreign ministers are expected to reconvene to discuss the matter again this week. The EU's High Representative for Foreign Affairs, Kaja Kallas, has pledged to bring the issue of sanctions against Israel back to the discussion table.

In response to the Netherlands' sanctions on settlements, the Israeli Ministry of Foreign Affairs announced it is boycotting Kallas and expelling the Netherlands from a multinational ceasefire monitoring task force. Foreign Minister Gabi Ashkenazi publicly threatened to expel Britain from the task force as well if its government announces sanctions on settlements.