UK to Announce Sanctions on Israeli Settlements, Reshaping Bilateral Ties

The new British government, led by Prime Minister Andy Burnham, is expected to announce sanctions against Israeli settlements on Tuesday. This move is part of a broader "reset" in UK-Israel relations, which will include stronger rhetoric, a renewed focus on the two-state solution, and tangible measures on the ground, according to British media reports. Foreign Secretary Ed Miliband is scheduled to make the announcement in the House of Commons.

Israel has previously vowed a harsh response to potential sanctions, including expelling Britain from the Multinational Force and Observers in Gaza. The "Financial Times" has called on the European Union to suspend its free trade agreement with Israel, while the new British Prime Minister is reportedly considering a "de facto boycott" of Israel. Germany is reportedly attempting to block EU sanctions against settlements.

Burnham has faced internal pressure from the Labour Party to adopt a tougher stance on Israel since becoming Prime Minister last summer. A letter signed by about a third of the party's Members of Parliament has urged him to take concrete action. The upcoming party conference, Burnham's first as leader, is also a factor, with the government's announcement seen as an attempt to address the issue proactively.

Across Europe, several countries have intensified their criticism of Israel, particularly following the approval of plans to expand construction in the E1 area near Jerusalem, which European nations argue "buries any chance for a two-state solution." The British government appears to be framing these measures as part of a wider policy shift to appease Labour Party members, while also being concerned about a strong reaction from the United States and potential damage to relations with Israel.

The specifics of the sanctions remain to be seen, as does the accompanying rhetoric. The decision to have the Foreign Secretary make the announcement suggests Burnham wishes to maintain focus on domestic issues. For Israel, this represents a continuation of a trend in Europe involving economic pressure to curb its settlement policies. Spain and Ireland have initiated legislation against trade with settlements, the issue has been discussed at the EU level, and the Netherlands has imposed a comprehensive boycott on settlement products, set to take effect on September 22.

Reports indicate Britain may prohibit all trade in goods and business relations with companies located in Israeli settlements, and ban certain services. This could involve requiring platforms like Booking.com to remove accommodations in settlements or East Jerusalem from their UK listings. Israel's annual exports to the UK are valued at $1.5 billion, part of a total bilateral trade of approximately $6 billion. Exports from settlements are estimated to constitute a small percentage of this total. The exact wording of the British legislation will be crucial in determining the scope of the trade and services embargo.